Question 1

What is PMS?

Accepted Answer

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.

Question 2

Who can offer PMS?

Accepted Answer

PMS can be offered only by entities having specific SEBI registration for rendering portfolio management services.

Question 3

Who is an ideal PMS investor?

Accepted Answer

High net worth individuals or institutions seeking personalized investment solutions, long-term wealth creation, and professionally managed portfolios tailored to their specific financial goals and risk appetite.

Question 4

Who can sign up for PMS?

Accepted Answer

Individuals, HUFs, Associations of Persons, Limited Companies, NRIs and overseas entities (subject to RBI approval) are eligible to sign up for Portfolio Management Services.

Question 5

How do I sign up for PMS?

Accepted Answer

You need to complete the Client Registration Form and execute the Agreement and Power of Attorney with the Portfolio Manager to begin the onboarding process.

Question 6

What are the tax implications of PMS?

Accepted Answer

Long Term Capital Gain Tax will be charged @ 10% on the profit calculated based on the cost of acquisition. Short term capital gains and other applicable taxes are as per prevailing tax regulations.

Question 7

How can I introduce my initial corpus?

Accepted Answer

You can introduce your initial corpus via cash or by transferring existing securities/shares. The portfolio will then be realigned to the model portfolio as per the chosen scheme.

Question 8

Do you guarantee returns?

Accepted Answer

Returns cannot be guaranteed. We shall endeavor to outperform the benchmark indices like Sensex & Nifty through disciplined investment strategies and active portfolio management.

Question 9

Is there a maximum investment limit?

Accepted Answer

There is no upper limit on the amount you can invest. You are welcome to invest as much as you are comfortable with, subject to the minimum ticket size requirement.

Question 10

What is the ideal time horizon for PMS?

Accepted Answer

The ideal time horizon for an equity portfolio is at least 24-30 months. A longer investment horizon allows the portfolio to ride through market cycles and generate meaningful returns.

Question 11

Is there a lock-in period?

Accepted Answer

There is no lock-in period. However, the ideal timeframe for meaningful returns is 12-18 months. We recommend staying invested for the suggested duration to benefit from our investment strategy.

Question 12

What is your investment philosophy?

Accepted Answer

We follow a bottom-up approach focusing on fundamentals and valuations. Our research team identifies companies with strong business models, sound management, and attractive valuations for long-term wealth creation.

Question 13

Is payment required upfront?

Accepted Answer

Yes, the initial corpus is required upfront to begin portfolio construction. However, there is flexibility to add additional funds at a later stage as per your convenience.

Question 14

Will I receive contract notes?

Accepted Answer

No contract notes. A detailed statement of your portfolio holdings, transactions, and performance will be emailed to you at the end of every month.

Question 15

Are different forms required for different funds?

Accepted Answer

No, the same form is used for any scheme. You do not need to fill out separate paperwork for different PMS schemes offered by us.

Question 16

Are there pre-decided investment percentages?

Accepted Answer

No, there are no mandatory pre-decided investment percentages. The Portfolio Manager allocates investments based on market conditions, scheme objectives, and the overall portfolio strategy.

Question 17

Can I specify where my money is invested?

Accepted Answer

This is a Discretionary PMS, which means the discretion of investment decisions lies entirely with the Portfolio Manager. Investment choices are made based on research and the scheme's objectives.

Question 18

In whose name are investments held?

Accepted Answer

Under PMS, all investments are held in the name of the scheme. The beneficial ownership of the securities always remains with the client.

Question 19

What paperwork is needed to start?

Accepted Answer

You will need to submit a Demat form, PMS forms, risk disclosure document, address proof, identity proof, PAN card copy, and recent bank statements to complete the onboarding process.

Question 20

Is PAN mandatory for PMS?

Accepted Answer

Yes, PAN (Permanent Account Number) is mandatory for all PMS investors. It is a regulatory requirement by SEBI for all securities market transactions.

Question 21

Can I transfer securities instead of funds?

Accepted Answer

Yes, you can transfer existing securities instead of funds. Valuations of the securities will be taken upon receipt, and the portfolio will be realigned accordingly.

Question 22

What is the fee structure?

Accepted Answer

The fee structure is as follows: Upfront Fee of 0.50%, Annual Management Charge (AMC) of 2.50% per annum, and Brokerage of 0.5% per transaction. All fees are subject to applicable taxes.

Question 23

Can I withdraw profits from my portfolio?

Accepted Answer

Yes, you can withdraw profits from your portfolio. However, you need to maintain the minimum ticket size as per the scheme requirements after the withdrawal.

Question 24

Can I terminate PMS before one year?

Accepted Answer

Yes, early termination is permitted. However, agreed charges as per the terms of the agreement will apply upon premature termination of the PMS contract.

Question 25

How will I receive portfolio updates?

Accepted Answer

You will receive detailed portfolio statements via courier on a quarterly basis, along with monthly portfolio updates sent to your registered email address.

Question 26

How safe are my securities?

Accepted Answer

Your securities are held with CDSL depository, ensuring the highest level of safety and transparency. The beneficial ownership of all securities always remains with the client at all times.

Question 27

Where will my money be invested?

Accepted Answer

Your money will be invested as per the scheme objectives and investment strategy. The specifics are discussed with your Relationship Manager (RM) at the time of onboarding.

Question 28

Does PMS involve day trading?

Accepted Answer

We do not indulge in any day trading. Our investment approach is focused on long-term value creation through disciplined, research-backed stock selection.

Question 29

Can PMS funds be used for IPO investments?

Accepted Answer

Yes, if the Portfolio Manager identifies suitable IPO opportunities that align with the scheme objectives, a portion of the portfolio may be allocated to IPO investments.

Question 30

Does PMS invest in derivatives?

Accepted Answer

Only for hedging purposes as allowed by SEBI. Derivatives are not used for speculative trading but may be employed to protect the portfolio during volatile market conditions.

Question 31

Does PMS invest in debt instruments?

Accepted Answer

Part of the portfolio may be invested in debt instruments or liquid funds to maintain liquidity, manage risk, and optimize overall portfolio returns as per the scheme mandate.

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