PMS AND ADVISORY

Portfolio Management Services (PMS) is an investment portfolio in stocks, fixed income, debt, cash, structured products and other individual securities, 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.
Investment Management Solutions in PMS, can be provided in the following ways:

• Discretionary - Under these services, the choice as well as the timings of the investment decisions rest solely with the Portfolio Manager.
• Non Discretionary - Under these services, 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 trade is done by the portfolio manager.
• Advisory - Under these services, the portfolio manager only suggests the investment ideas. The choice as well as the execution of the investment decisions rest solely with the Investor.
  Note :In India majority of PMS providers offer Discretionary Services.
• PMS gives investors access to an institutional process of money management.
• Provides a customized solution by matching the unique circumstances and objectives of each investor.
• Wealth creation based on disciplined investment process is the crux of PMS.
• Effective diversification helps reduce portfolio volatility and enhances risk-adjusted returns over long term.
• MS gives investor direct ownership of the individual securities in the portfolio.

The Investment solutions provided by PMS cater to a niche segment of clients. The clients can be Individuals or Institutions entities with high net worth. Ideal for investors who:

• Looking to invest in asset classes like equity, fixed income, structured products etc.
• Desire personalised investment solutions.
• Desire long-term wealth creation.
• Effective diversification helps reduce portfolio volatility and enhances risk-adjusted returns over long term.
• Appreciate a high level of service.

Portfolio Management Services and Mutual Funds: The Differences

If you fall under any of the following categories, you are eligible to enroll:

• Individuals.
• Hindu Undivided Families.
• Association of Persons.
• Limited Companies.
• NRIs, Overseas companies, firms, societies, and overseas Trusts (subject to RBI approval).

Under the Portfolio Management Scheme, each transaction scheme will be considered as an independent trade and capital gains will be applied on each depending upon whether the relevant stock was held long term or short term. Presently 15.66 % tax is chargeable for Short Term Capital gains and no tax is chargeable on Long Term Capital Gains. The STT charges will also apply.