Skip to main content

What is Portfolio Service?

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)
 


The recent debacle of Prime Securities highlights the problems investors could face with their portfolio management services accounts. A look at how you can safeguard your portfolio in such circumstances

 

The last thing you want to discover is that your stock broker has run into difficulties. Or that his trading facility has been suspended.

The exchanges disabled Prime Securities trading terminal following an alleged default. An investigation into its trading activities is on. Clients can no longer trade through that brokerage.

Prime has moved the Securities Appellate Tribunal against the National Stock Exchange confiscating some of its clients' funds.

Internationally, there have been cases such as MF Global where clients of the brokerage lost money when it went bust.

Such issues highlight the problems investors could face if their broker runs into trouble. Sometimes, it becomes difficult for investors and clients to get their money back from the brokerages. Clients whose money is handled by brokers in portfolio management services accounts can also be stuck for no fault of theirs. If portfolio management services are not careful of the type of stocks and securities they buy or don't conduct background checks on companies, you always see such types of problems." As the business is growing rapidly, issues such as the above may crop up occasionally. Portfolio managers handled discretionary assets worth ₹ 5.15 lakh crore, with ₹ 78,198 crore for advisory services.

Background check

With so much money invested, investors should take extra precaution to take a closer look at how and where they keep their wealth. Individuals can raise certain safeguards for their trading and portfolio accounts.

When you sign up for a portfolio service, be wary of any sales pitch that promising high returns. Don't get tempted with any of these gimmicks, as there are no guarantees in the market.

Stocks are a risky business and trades can go wrong even for the best of portfolio managers.

Before you sign up for a portfolio management service, check a broker's background and whether any disciplinary action has been raised against him or her or even if there have been complaints against them.

Also, check whether a broker is registered with Sebi as a portfolio manager. The regulator is supposed to regulate such service providers. Just this one simple check could later save you from trouble.

Brokerages offer discretionary and advisory services. In the former, your portfolio manager selects stocks and transacts on your behalf. In the latter, the portfolio manager merely offers advice but carrying out transactions on that advice is left to you.

Portfolio managers, however, have to keep separate accounts for each client. Hence, you should know all such transactions made specifically made on your behalf.

In a discretionary account, your fund manager takes a call of the stocks that will be selected in your fund. However, you have still to keep tabs on the transactions that take place in your account. PMS providers should give you all details about the trading in your account either online or through a physical statement sent to you every month.

Since discretionary services are usually pooled, no separate contract notes might be issued to you. So ensure you file all statements at your end. Ideally, investors should look at their accounts every 15 days through an online account. This is updated regularly by portfolio managers and details of all transactions made on behalf of the client are uploaded with a small lag. In a non- discretionary account, the firm has to issue you a contract note for transactions done on your behalf. Keep all these records safe. More important, have all the contract notes and quarterly account statements mailed to you at your mailing address. Take notes whenever you can and talk to your broker concerning your investment and risk profiles. File documents regularly.

In case you notice any discrepancy in your statements, sort it out with your broker immediately.

Brokers might also tend to trade or churn your portfolio to generate some brokerage business. Therefore, always ask your portfolio manager why s/ he has bought or sold a particular stock. Make sure you carry out this exercise once a month to keep abreast of changes in your portfolio and a check on your broker. Says a spokesperson of the NSE: Investors should always check post- trade documents received from a broker such as contract notes, statements of accounts, statements of securities, etc. All payments made by an investor should be through a cheque on a linked bank account and in the name of the broker. If you have any issues with your broker or portfolio management service provider which is not being resolved by your broker, you could bring it to the notice of the exchange, through their online complaint e- filing system.

Also, remember stocks tend to slip in value; hence, if the value of your portfolio dips, this does not necessarily imply your portfolio has been compromised. Still, check whether the investments suit you and are consistent with your risk profile.

Let your portfolio manager know you are not comfortable with certain decisions. At the same time, allow your portfolio manager adequate time to show results.

|Power of attorney is the legal authority you give your stock broker to operate your demat account for the purposes you set. If you give a PoA, retain control in your hands by choosing to receive Contract Notes, quarterly statement of your accounts and demat account statement at your address.

|Do not give authorisation to make investment decisions on your behalf to the PoA holder. Also, ensure you are not giving powers to open and close an account on your behalf to the PoA holder.

|Take care to specify the period for which you are giving the PoA. Also, make sure you reserve the right to revoke it at any time, giving due notice.

|Do keep a regular check of your running account. Make sure there are no surplus funds idle in your account. Deposit as much as required. And, settle your accounts on a monthly basis.

|Try and avoid keeping your demat account with the broker, if possible, if you have signed up for portfolio management services. That will avoid any unnecessary hassle in case your broker dips into your account.

|Sign up for SMS alerts from your demat account to notify you of any transactions in your account

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. ICICI Prudential Tax Plan Invest Online
  2. HDFC TaxSaver Invest Online
  3. DSP BlackRock Tax Saver Fund Invest Online
  4. Reliance Tax Saver (ELSS) Fund Invest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) Fund Invest Online
  7. SBI Magnum Tax Gain Scheme 1993 Invest Online
  8. Sundaram Tax Saver Invest Online
  9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFunds Invest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

Popular posts from this blog

ICICI Pru Mutual Fund Dividend

ICICI Prudential Mutual Fund has announced dividend under the following schemes: Scheme Dividend ( Rs /unit) ICICI Pru Capital Protection Oriented Ser V Plan B-D 0.03611325 ICICI Pru Capital Protection Oriented Ser V Plan B Direct-D 0.03611325 ICICI Pru Balanced Advantage Direct-DM 0.06 The record date has been fixed as February 08, 2017. ------------------------------ ------ Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds Top 4 Tax Saver Mutual Funds for 2017 - 2018 Best 4 ELSS Mutual Funds to invest in India for 2017 1. DSP BlackRock Tax Saver Fund 2. Invesco India Tax Plan 3. Tata India Tax Savings Fund 4. BNP Paribas Long Term Equity Fund Invest in Best Performing 2017 Tax Saver Mutual Funds Online Invest Best Tax Saver Mutual Funds Online Download Top Tax Saver Mutual Funds  Application Forms For further information contact  SaveTaxGetRich on 94 8300 8300 ------------------------------ ------ Leave y...
Read more

What is Financial Freedom?

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)     There were many things common between our Freedom fighters. All had the Single vision (Free India), common goal (independence) and had a disciplined and focused approach. They were ready to do anything and everything and had made so many sacrifices to see India free . But the road to freedom was not easy .They had faced lot many hardships, went to jail so many times and even confronted physical and mental torture from the British. There was one more thing which proved to be an advantage to our fighters that most of them were professional lawyers. The knowledge of legal issues and its impact on our country at large has helped them counter various bills and proposed new laws by the then government. It is due to their continuous effort that we are able to achieve the goal of Independent Indi...
Read more

Hidden Bank Fees

  What Banks Hide From Customers Imagine after a peaceful and exciting holiday you receive your bank statement with steep charges. You then rush to your bank and start confronting staff members and to your dismay, you come to know that the high end debit card was charged very heavily. Wouldn't this cause damage to your finances? So remember, the world outside is full of deceptive and double cheating people. Unethical practices are always used by company sales person in order to meet the target. Credit card companies, mutual funds and bank institutions always play dirty tricks to lure customers and the practices are rampant. So here's how you should be careful while dealing with your banks: High End Debit Card Charges While opening an account with a bank you opt for a debit card with minimal charges. But later on when you upgrade your card and opt for high end debit card the annual charge rise by a good amount. Though such a card has slew of features but it all comes at a high ...
Read more

Updating a minor PAN card upon becoming adults

  Updating a minor's PAN card once they become adults A PAN card issued in the name of a minor does not contain the minor's photograph or signature, and therefore, cannot be used as a valid proof of identity. Once a minor PAN card holder turns 18, the relevant changes must be made in the PAN records. A new card is then issued bearing a photograph and signature. Application The applicant is required to fill up the "Request for new PAN card andor changes or correction in PAN data" form. The form can be filled up online by accessing NSDL's Tax Information Network website and clicking on the online PAN application tab. Information The applicant must mention the existing PAN number in the application and check the `photo mismatch' and `signature mismatch' boxes, and submit the online form. The form must also be printed out, signed by the applicant, and submitted along with two photographs. Documents Identity and address proof in the form of a copy of the app...
Read more

Partial withdrawal from PPF

  Public Provident Fund (PPF) account has a lock in period   If you opened a PPF account to meet your retirement needs,, think twice about withdrawing from this fund before retirement. But provided it's an emergency here are the rules. Public Provident Fund (PPF) account has a lock in period before which you cannot withdraw your money.   The partial withdrawal is allowed after the completion of 6 financial years . This means that you will be allowed a partial withdrawal from 1 April 2017. The maximum partial withdrawal allowed is the least of the following: 50 percent of the account balance at the end of fourth financial year, 31 March 15 50 percent of the account balance of the end of previous financial year, 31 March 17.   There's a loan option available on your PPF account between the fourth and the sixth financial year. You can obtain a loan of up to 25 per cent of the balance in your account. However, this will attract interest of 2 percent more than the prevailing ...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now