What is Portfolio Management Services (PMS)?

Portfolio Management Services account is an investment portfolio in Stocks, Debt and fixed income products managed by a professional money manager, that can potentially be tailored to meet specific investment objectives. When you invest in PMS, you own individual securities unlike a mutual fund investor, who owns units of the entire fund. You have the freedom and flexibility to tailor your portfolio to address personal preferences and financial goals. Although portfolio managers may oversee hundreds of portfolios, your account may be unique. As per SEBI guidelines, only those entities who are registered with SEBI for providing PMS services can offer PMS to clients. There is no separate certification required for selling any PMS product. So this is case where mis-selling can happen. As per the SEBI guidelines, the minimum investment required to open a PMS account is Rs. 5 Lacs. However, different providers have different minimum balance requirements for different products. For Eg Birla AMC PMS is having min amount requirement of Rs. 25 lacs for a product. Similarly HSBC AMC is having minimum requirement of 50 lacs for their PMS and Reliance is having min requirement of Rs. 1 Crore. In India Portfolio Management Services are also provided by equity broking firms & wealth management services.

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There are broadly two types of PMS

1. Discretionary PMS – Where the investment is at discretion of the fund manager & client has no intervention in the investment process.

2. Non-Discretionary PMS – Under this service, the portfolio manager only suggests the investment ideas. The choice as well as the timings of the investment decisions rest solely with the investor. However the execution of the trade is done by the portfolio manager.

Discretionary Offers

– Dynamic Investment Portfolio
– Value Enhancer Portfolio
– Absolute Freedom Portfolio
– Dynamic Mutual Fund Portfolio (FoF)
– Customize Portfolio

Non Discretionary Offers

– The objective is to advice clients on various investment instruments depending on the client’s needs and risk-return profile.
– Provide administrative services for execution of transactions as per the mandate from the client.
– Client will decide his own investments based on Fund Manager’s view.
– Portfolios available under Discretionary category are also available in Non-Discretionary category.

Benefit of PMS

  • – Sound & Strong Management enjoys strong relationships with Corporates across the industries.
  • – Smart Class of products & service offerings and inclination towards continuous product innovation.
  • – Investment Expertise across Asset Classes.
  • – Consistency in performance.
  • – Established track record of Wealth Management,PCG Services & PMS.
  • – Widespread geographical presence and dedicated team for investor’s services.
  • – Experienced Investment Management Team.

FAQs

No, as an NRI you can purchase shares in primary market on repatriable basis and application money can be paid through regular NRE SB Account or through inward remittance.

No, as an NRI you can purchase shares in primary market on non-repatriable basis and application money can be paid through regular NRE/ NRO SB Account or inward remittance.

Yes, as an NRI you can receive shares in inheritance. RBI permission is not required to be obtained and the shares will be held on non-repatriable basis.

The shares purchased through primary / secondary market as a resident will be held on non-repatriation basis. Once the customer becomes an NRI, these shares can be credited to NRO DEMAT Account. These shares can be sold in secondary market without PIS permission. The sale proceeds can be credited to NRO SB Account after payment of capital gain taxes.