Frequently Asked Questions About PMS

Portfolio Management Services (PMS) refers to an investment portfolio of equities, fixed income, cash, debt structured products and other individual assets managed by a professional money manager and can be tailored to specific investment objectives.

Portfolio management services are often reserved for high net worth individuals, while mutual funds are available to a diverse group of investors. SEBI regulates mutual funds very strictly but Portfolio Management services are not as transparent as mutual funds.

A portfolio manager is a legal entity that advises, directs, manages or manages a client's portfolio of securities, assets or funds (as a discretionary portfolio manager or otherwise) under the terms of a contract with the client.

Portfolio Management Services can be offered only by SEBI registered Portfolio Managers.

According to the SEBI rules, the minimum investment in the PMS scheme is now Rs. 50 lakhs for new investments. Additional investment at least Rs. 10 lakh or more for existing customers.  there is no limit on investments in a portfolio account. We serve clients with a range of portfolio sizes and our relationship managers are well equipped to manage individual accounts with large assets under management (AUM).

In accordance with the portfolio management regulations imposed by SEBI, we cannot guarantee any specific return. However, the investment objective of each portfolio manager is to outperform benchmarks.

A PMS investor's tax obligations are the same as for investments that have entered the capital market on their own. Under the PMS scheme, each transaction is treated as an independent business and capital gains are applied to each transaction based on the holding period of the stock. Currently, the long-term capital gains tax is 11.96% and the short-term capital gains tax is 17.94%.

Clients can withdraw their winnings at any time as long as they maintain the established Rs. The minimum amount for PMS investors is Rs 5 lakh.

In a discretionary portfolio management service, the portfolio manager handles each client’s assets and securities separately and independently, according to the client’s needs. The portfolio manager in the non-discretionary portfolio management service administers the money according to the client’s instructions.

To invest in secondary markets in India, NRIs must obtain approval from the Reserve Bank of India (RBI). To do this, a designated bank account must be opened under the Portfolio Investment Scheme (PIS) and all transactions related to investment in secondary markets must be processed through that account.

Yes, NRIs can invest in PMS through NRE or NRO accounts. NRI customers have some additional compliance/documentation requirements. Our relationship manager will assist NRI clients with this document.

You will receive quarterly updates on the performance of your PMS account. There is also a web portal where you can log in and view your account performance and net worth.

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