FAQs
     

Is there any specified value of funds or securities below which a portfolio manager can’t accept from the client while opening the account for the purpose of rendering portfolio management service to the client?

       

As per SEBI guidelines, the portfolio manager is required to accept minimum Rs. 50 lakhs for rendering portfolio management service to the client. The minimum investment requirement for both our portfolios is Rs. 50 lakhs/each



       

How is PMS different from Mutual fund?

       
 

Features

 

PMS

 

Mutual Fund

 
 

Management

 

Provide ongoing, personalized access to professional money management services

 

Provide access to professional money management services

 
 

Customization

 

Portfolio can be tailored to address each investor's specific needs

 

Portfolio structured to meet the fund's stated investment objectives

 
 

Ownership

 

Investors directly own the individual securities in their portfolio

 

The trustee own shares of the fund and cannot influence buy and sell decisions

 
 

Minimums

 

Significantly higher minimum investments than mutual funds. Minimum investment – Rs. 25L

 

Minimum Investment - Rs. 5,000

 
 

Flexibility

 

PMS products can be customized to meet special customer requirements

 

No customization possible

 


       

Who can sign up for PMS?

       

The following investors are eligible to invest through PMS:

  -

Hindu Undivided Families (HUF)

  -

Body corporate (Private/Public)

  -

Trust

  -

Non Resident Indian (NRI)*

  -

Partnership Firms or any other eligible investor.

*Except USA and Canada residents.

         

What is the Tax treatment?

       

The tax liability of a PMS investor would remain the same as if the investor is accessing the capital market directly. However, the investor should consult his tax advisor for the same. The Portfolio Manager ideally provides audited statement of accounts at the end of the financial year to aid the investor in assessing his/ her tax liabilities.


       

Does one necessarily invest in cash to open a PMS account?

       

Apart from cash, the client can also hand over an existing portfolio of stocks, bonds or mutual funds to a Portfolio Manager and the Portfolio Manager may at his own sole discretion sell the said existing securities in favor of fresh investments to match the strategy portfolio.


       

Is premature withdrawal of Funds/securities by an investor allowed?

     

The funds or securities can be withdrawn or taken back by the client before the maturity of the contract. However, the terms of the premature withdrawal would be as per the agreement between the client and the portfolio manager.


       

What is the fee structure?

       
 

Category

 

Fixed Fees structure

 

Variable Fees Structure

 
 

Discretionary

 

 

 
 

Less than 5 Crores Investment

 

2.5%

 

1.5% + 20% Incentive fees over fixed hurdle

 
 

Rs 5 Crores to less than Rs 10 Crores Investment

 

2%

 

1.25% + 20% Incentive fees over fixed hurdle

 
 

Rs 10 Crores to less than Rs 25 Crores Investment

 

1.5%

 

1% + 20% Incentive fees over fixed hurdle

 
 

Rs 25 Crores or more Investment

 

1.25%

 

0.75% + 20% Incentive fees over fixed hurdle

 
 

Advisory

 

 

 
 

Less than 5 Crores Investment

 

2.0%

 

1.0% + 20% Incentive fees over fixed hurdle

 
 

Rs 5 Crores to less than Rs 10 Crores Investment

 

1.5%

 

0.75% + 20% Incentive fees over fixed hurdle

 
 

Rs 10 Crores to less than Rs 25 Crores Investment

 

1.0%

 

0.5% + 20% Incentive fees over fixed hurdle

 
 

Rs 25 Crores or more Investment

 

0.75%

 

0.25% + 20% Incentive fees over fixed hurdle