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Knowledge Centre

➤ What is a Portfolio Management Service (PMS)?

Portfolio Management Services (PMS) is an investment portfolio in stocks and also for fixed income, debt, structured products and other individual securities, managed by professional managers. An investor in PMS will own individual securities unlike a mutual fund investor, who owns units of the scheme or a fund. The Investment solutions provided by PMS cater to a niche segment of clients with investments of over 25 lakhs rupees. There are two different types of PMS, discretionary and non-discretionary however majority of the asset management companies offer only discretionary PMS.

Discretionary PMS :

In discretionary PMS, the choice as well as the timings of investment rest solely with the Fund Manager. The discretionary portfolio manager manages the funds of each investor independently and investments are made at the fund manager's discretion and not on investors discretion.

Non-Discretionary PMS :

In non-discretionary PMS, the fund manager will only suggest the investment ideas. The decisions on timings as well as choice of the investment rests solely with the investor. However, the execution of trade is done bythe fund manager. There are very few PMS service providers who offer Non-discretionary PMS.

Why PMS?

Portfolio Management Services (PMS) are for investment portfolios in fixed income, stocks, cash, debt, structured products and other individual securities that can be tailored to meet specific investment objectives. Investing in PMS allows you to own individual securities unlike mutual funds, where you get to own units of the fund.Its flexible and allows customization of your portfolio to address personal preferences and financial goals that you set for yourself.

Benefits of Investing in PMS

Professional & Active Management

Portfolio Management Service has qualified and experienced portfolio managers backed by a strong research team managing portfolios on behalf of clients instead of the clients managing it themselves.

Customized /Tailor Made Investment Advice

Portfolio Management Services provide tailor made professional services to meet the investment objectives of various investors .The Portfolio manager builds and manages each portfolio keeping in mind the strategy selected and the timing of the investment.

Transparency

PMS Investors will directly own the portfolio stocks in theirDP. Every transaction is intimated to the investor. PMS is transparent in terms of expense ratios with 24/7 online access to investors.

Superior Returns

PMS can be more aggressive and has the potential to generate superior returns. Portfolio managers may choose to have meaningful exposure to such companies as well as hold on as long as they are delivering growth by adding value and superior returns.

How PMS is different from Mutual Fund

SPECIFICATION
PMS
MUTUAL FUNDS
Objective Portfolio Management Services provide tailor made professional service offer to meet the investment objective of various investor Mutual Funds schemes are structured to meet the funds stated investment objective.
Ownership In PMS Investors will directly own the portfolio stocks in their DP. Mutual Funds Trustees will own the stocks of the fund and investors will be allocated units.
Minimum investment As per SEBI regulation, minimum thresholds for investing in PMS is Rs 25 Lakhs by way of stock or cash/or combination of both.

Mutual funds investment thresholds as low

as Rs. 500

Customization Customization is possible to meet special or specific requirements of investors. No customization possible in mutual funds.
Portfolio construction Majority of PMS portfolio are focused portfolios constructed within 15 to 25 stocks Majority of MF portfolio are diversified portfolios with more than 50 stocks.

Portfolio Stock 

Weightage


PMS fund manager has flexible to allocate any weightage to single stocks.
Majority of MF portfolio are diversified portfolios with more than 50 stocks.
Ideal Investor The Investment solutions provided by PMS cater to a niche segment of clients Mutual Funds being structured for a wide mass of retail investors

Who is Ideal Investor for PMS?

The investment solutions provided by PMS cater to a niche segment of clients. Minimum investment for PMS is 25 lakhs as per SEBI regulation. These clients can be either Individuals or Institutional entities who require a dedicated investment management service.The PMS platform is ideal for investors who seek to invest in asset classes like equity with professional management require investment advice for long-term wealth creation.

What We Do:

Our team has over 20 years of cumulative experience, which enables us to take a specialist approach in management and consultancy for portfolio management clients. We are committed to providing the best investment advice, analysis, and services to every client with the objectives of:

  • Maximizing returns while minimizing risks.
  • Unbiased recommendations with assured transparency.
  • Sound advice backed by in-house research based metrics.
  • Guaranteeing client satisfaction

➤ Alternative Investment Funds (AIFs)

Alternative Investment Funds or AIF means any fund established or incorporated in India which is a privately pooled investment vehicle which collects funds from sophisticated investors, whether Indian or foreign, for investing it in accordance with a defined investment policy for the benefit of its investors.

Categories of Alternative Investment Funds (AIFs)

As per Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 Alternative Investment Funds shall seek registration in one of the three categories.

Category I: Mainly invests in start- ups, SME's or any other sector which Govt. considers economically and socially viable.

Category II: These include Alternative Investment Funds such as private equity funds or debt funds for which no specific incentives or concessions are given by the government or any other Regulator

Category III : Alternative Investment Funds such as hedge funds or funds which trade with a view to make short term returns or such other funds which are open ended and for which no specific incentives or concessions are given by the government or any other Regulator.

Tenure and Listing of Alternative Investment Funds / Schemes

  • For AIF scheme launched under Category I & II shall be close ended, the tenure shall be determined at the time of application and shall be for minimum three years.
  • Category III Alternative Investment Fund may be open ended or close ended.
  • Extension of the tenure of the close ended Alternative Investment Fund may be permitted up to two years subject to approval of two-thirds of the unit holders by value of their investment in the Alternative Investment Fund. In the absence of consent of unit holders, the Alternative Investment Fund shall fully liquidate within one year following expiration of the fund tenure or extended tenure.
  • Units of close ended Alternative Investment Fund may be listed on stock exchange subject to a minimum tradable lot of one crore rupees. Such listing shall be permitted only after final close of the fund or scheme. However, listing on stock Exchanges is purely voluntary.