Skip to main content

Portfolio Management Service (PMS) – FAQ (Frequently Asked Questions)

What is a PMS?

 

A PMS (Portfolio Management Service) is a service offered to investors wanting to invest in the Indian stock markets on the basis of expert knowledge, research and experience.

 

Who can use a PMS?

 

A PMS service can be used by an investor who wants to invest in the Indian stock
markets and benefit from India's economic growth, but doesn't have the necessary time,
knowledge or experience to do so.

 

How is a PMS different from a Mutual Fund?

 

A PMS is more transparent than a Mutual Fund as the stocks purchased are in your name. The cost structure of the PMS is also more competitive and thus give you the opportunity to make higher returns.

 

Can everyone invest in a PMS?

 

While a Mutual Fund is open to everybody, a PMS is more selective and the minimum amount needed to invest is higher. It is meant for more sophisticated investors looking for exponential returns.

 

What are the types of returns I can expect?

 

Returns vary on the basis of your needs and investment profile. On an average, looking
at India's economic growth, you can expect returns in the range of 45%-55% per year
over the next ten years. The returns depend also on your PMS fund manager and
according to SEBI regulation cannot be guaranteed.

 

What all PMS services are available in India?

 

There are various PMS services available in India such as Kotak Portfolio Management
Services (Kotak Securities) Reliance Portfolio Management Services, ICICI Portfolio
Management Services and FAMS Portfolio Management Services amongst others.

 

How do I choose which PMS to invest in?

 

Invest with someone who philosophy of investing matches your outlook. If you believe in
long term investing on the basis of knowledge, don't invest with a fund manager who
believes in daily trading and speculation.

 

Which PMS has given the best returns?

 

Due to the private nature of the fund management industry, it is difficult to say which is

the best PMS service has given the best and maximum returns.

 

How does the PMS work?

 

A new bank account, DP and trading account are opened in your name and then it is
professionally managed by your PMS Fund Manager. Your PMS fund manager will
have a specific POA (Power of Attorney) to manage this account.

 

Whose names will the stocks be in?

 

Stocks will be in your personal name and not in the name of your PMS manager. All dividends will also be directly credited into your account. Your stocks will be held in Demat form (electronic form) in your name and can be accessed by you at anytime.

 

What about the funds I invest?

 

The funds you invest will be kept in a new bank account opened in your own name.

 

Will I be able to see what stocks are being bought and sold?

 

Yes, the PMS system is completely transparent and you will get to know what is being

done with your funds.

 

Can I access my funds whenever I need them?

 

Yes, you can access your funds anytime you want by giving prior intimation. There is no

lock-in-period.

 

Can I also transfer my existing shares to the new PMS account?

 

Yes, you can transfer your existing shares to your new PMS account and have it

managed professionally.

 

How do performance based fees work?

 

Performance based fees ensure your fund manager is motivated to maximize your

returns. Based on the returns given, performance based fees are charged.

 

Will I get a receipt for the charges?

 

Yes, you shall get a receipt for all charges. The PMS operates under very strict
regulatory norms laid down by SEBI (Securities and Exchange Board of India), BSE
(Bombay Stock Exchange), NSE (National Stock Exchange) and all other regulatory
authorities.

 

Can Non-resident Indian (NRIs) invest in a PMS?

 

Yes, NRIs can invest in a PMS. For that they will need to also open a PIS (Portfolio
Investment Scheme) account, for this permission from RBI(Reserve Bank of India)
needs to be taken. This documentation and permission will be handled by your PMS
manager. The documents can be sent across to anywhere in the world and you don't
need to be present physically in India.

 

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

 

Also, know how to buy mutual funds online:

 

Invest in DSP BlackRock Mutual Funds Online

 

Invest in Reliance Mutual Funds Online

 

Invest in HDFC Mutual Funds Online

 

Invest in Sundaram Mutual Funds Online

 

Invest in Birla Sunlife Mutual Funds Online

 

Invest in IDFC Mutual Funds Online

 

Invest in UTI Mutual Funds Online

  

Invest in SBI Mutual Funds Online

 

Invest in L&T Mutual Funds Online

 

Invest in Edelweiss Mutual Funds Online

 

Popular posts from this blog

Debt Mutual Fund Dividends are Taxable

DDT is deducted when a non-equity fund declares dividends. Equity and balanced fund dividends are tax-free The AMC is correct to deduct the dividend distribution tax (DDT) as it is mandated by tax laws. DDT in mutual funds is deducted every time a non-equity fund declares dividends. Equity fund and balanced fund dividends are tax-free . It is possible that you have invested in a non-equity fund for the first time or have received the dividend under a non-equity fund for the first time. That is why this is the first occasion when you have come across DDT.   The rate at which non-equity schemes deduct DDT has also gone up after the July 2014 budget. This is due to a change in calculation methodology. Earlier, if the fund has to declare a dividend of R 100, it used to make a provision for R 128.3, paying R 28.3 to the taxman and distributing the balance to the investor. This allowed the investor to bear less tax since the effective tax rate was 22.07 per ce...
Read more

Atal Pension Yojana contribution Tax Benefit for spouse

Contributions to Atal Pension Yojana (APY) are eligible for the same tax benefits as the NPS. This means that the contributions can be claimed under Section 80CCD (1B). The current limit for Section 80CCD (1B) is   Rs   50,000, over and above the   Rs   1.5 lakh limit under Section 80C. Section 80 CCD (1) is a different one, meant to cover employers' contribution towards NPS . You cannot get tax benefit by investing in the name of your spouse under Section 80 CCD . ------------------------------ ----------------- Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds Top 10 Tax Saver Mutual Funds to invest in India for 2016 Best 10 ELSS Mutual Funds in India for 2016 1. BNP Paribas Long Term Equity Fund 2. Axis Tax Saver Fund 3. Religare Tax Plan 4. DSP BlackRock Tax Saver Fund 5. Franklin India TaxShield 6. ICICI Prudential Long Term Equity Fund 7. IDFC Tax Advantage (ELSS) Fund 8. Birla Sun Life Tax Relief 96 9. ...
Read more

Franklin India High Growth Companies Fund

Franklin India High Growth Companies Fund Online One of the key developments that the Street is keenly waiting for is a cut in interest rates by Reserve Bank of India . With demand rising gradually, a rate cut is expected to boost earnings growth for companies. In such a situation, schemes which invest in high growth companies are best suited, especially when seen from a long-term perspective. One such scheme is Franklin India High Growth Companies Fund. Fund managers Anand Radhakrishnan, Roshi Jain and Srikesh Nair strictly follow valuation parameters when it comes to choosing stocks.Valuation parameters, such as enterprise value, price-to-earnings growth ratio, forward price-to-sales ratio and discounted earnings per share, play a critical role in selecting companies for investments. Taking into account these parameters, the fund managers invest in companies which are poised for high growth in their respective sectors. This approach has been in favour of the scheme and it has perform...
Read more

Avoid NFOs

  Don't get taken in by the flurry of new fund offers. You will be better off sticking to the tried and tested schemes.   For the past one year, to cash in on the bull run in equities, mutual fund houses have gone on a new fund offer (NFO) overdrive. But experts are unanimous in their advice: avoid NFOs . While past performance is not an indicator of how a fund will fare in the future, it does tell the investor how skilful the fund manager is. This crucial information is missing in an NFO. Not only is there no track record to judge an NFO by, many NFOs are similar to funds that already exist. If the new fund is similar to existing funds, you are better off investing in the latter. Around 67% of the new launches in 2014 were closed-end products. Investing in the NFO of a closed-end fund is doubly risky. In case the fund's performance is lacklustre, a closed-end fund does not allow you to exit. Even though closed-end funds are listed on the stock...
Read more

Mutual Fund Exit Load Changes

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 Mutual Fund Exit Load Changes AMCs don't communicate about any change in exit load directly with investors, but do update on their website   The exit load applicable to your investments is the load which existed at the time when you invested in the particular fund. Any subsequent changes in the exit load will not be applicable to your investments.   However, Asset Management Companies ( AMCs ) periodically publish addendums in the newspapers, which state any change in exit loads of specific schemes managed by them. Such changes are also posted on their websites. However, a direct communication to an investor is not made, considering the costs involved in doing so. In their own interests, investors should not only track the performance of the funds they i...
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