All FAQs

A Portfolio Management Service is a platform created especially for high net-worth individuals to provide customized solutions for their financial investment needs. Investment management solutions in a PMS can be provided in three ways – Discretionary Portfolio, Non-Discretionary Portfolio, Advisory Portfolio. Portfolio Management Services are regulated by Securities and Exchange Board of India (SEBI) under PMS Regulations.

The specialized investment solutions provided by Portfolio Managers typically cater to high-net-worth clients. These clients can be individuals or Institutional entities who require a dedicated investment management service. The PMS platform is ideal for investors who: 1. Value a highly personalized investment management solution. 2. Are discerning and appreciate a high level of client service. 3. Require investment advice for long-term wealth creation.

Investors can log on to the website of SEBI www.sebi.gov.in for information on SEBI regulations and circulars about portfolio managers. The addresses of the registered portfolio managers are also available on the SEBI website. Information on monthly reports submitted by Portfolio Managers to SEBI can be accessed at https://www.sebi.gov.in/sebiweb/other/OtherAction.do?doPmr=yes

As per SEBI norms, the minimum investment in a PMS scheme is now Rs. 50 Lakhs for fresh investments.

As per the Portfolio Management Regulations prescribed by SEBI, we cannot guarantee a specific rate of return. However, the investment objective of any Portfolio Manager is to outperform the benchmark indices.

The ideal time horizon for an equity PMS strategy should be a minimum of 3 years.

Calculation of the performance fee is done considering the high watermark principle. 'High Water Mark' is the higher of either 'corpus investment value' or 'highest portfolio value at which fees have been paid historically'. Illustration of how the High-Water Mark would work: A client's initial contribution is Rs 1,00,00,000, which rises to Rs 1,45,00,000 in its first year. Therefore, a performance fee would be payable on the Rs 45,00,000 return. Next year, the portfolio value drops to Rs 110,00,000. Therefore, no performance fee is payable. In the third year, the portfolio value rises to Rs 1,60,00,000. A performance fee is payable only on the profit over the previously achieved high watermark, i.e., Rs 1,45,00,000 less performance fee (including taxes).

The tax liability of a PMS investor is the same as that of an investor who accessed the capital markets by himself. Under the PMS scheme, each transaction will be considered as an independent trade, and capital gains will be applied to each transaction depending on the holding period of the stock.

We will invest your capital by the respective products’ investment and risk framework as defined in the disclosure document.