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

What is Electronic Clearing Service (ECS)?

  As the name suggests, it's an electronic process through which money can be transferred from one bank account to another. According to RBI, this mode is usually used for regular payments and receipts, like distribution of dividend, interest, salary, pension etc. This mode is also used for collection of bills for telephone, electricity, water, various types of taxes, payment of EMIs , investments in mutual funds , payment of insurance premium etc. There are two types of ECS , like most other banking transactions, ECS credit and ECS debit. An ECS credit is used by a bank account holder , usually a large company or an institution for services like payment of dividend, in terest, salary, pension etc. If your mutual fund pays you dividend to your bank account, of all probability it is being paid through ECS credit.ECS debit, on the other hand, is used when a company or an institution is getting money from a large number of people. For example if you are investing in a mutual fund sc...
Read more

WEALTH TAX

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 WEALTH TAX   WHAT CONSTITUTES WEALTH? For wealth tax purposes, "wealth" means property , urban land, car, jewellery , yacht, boat, aircraft and cash in hand in excess of Rs 50,000. CAUTION POINT | Do not think you will have an easy escape from wealth tax by transferring your `wealth' without consideration to your spouse or minor child. Such assets will also be considered as your wealth. HOW TO DETERMINE YOUR TAXABLE WEALTH Add the taxable value of the above assets (computed as per the detailed rules for valuation) owned by you as on March 31 (for FY 2014-15, it will be March 31, 2015). In case you sold your car during the year, it will not be taxable wealth. Deduct loans if any obtained by you to acquire any of the taxable assets from the value of gross tax out for at least 300 days in a...
Read more

Equity Savings Fund

Invest Equity Savings Fund Online   The best part about these funds is that they are subject to equity fund taxation and at the same time are structured like MIP like funds . This new category, equity savings funds , offer a little of everything. They allocate money to equities & equity related instruments, and fixed income. They aim to generate returns by diversification. Such funds invest in fixed income and arbitrage to protect the investors from short term volatility and equity for capital gains. The best part of these funds is that they are subject to equity fund taxation and at the same time are structured like MIP funds.   MIP funds however are subject to debt fund taxation. Investors Equity savings funds are suitable for the following: First time investors who seek partial exposure to equity with less volatility and greater stability Investors seeking moderate capital appreciation with relatively lower risk Those wh...
Read more

How to Pick Top Performing Mutual Fund Schemes

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   How to Pick Performing Schemes  Funds that continue to stay in the top grade of performance over longer periods are the ones to bet on, advise investment experts   The mutual fund performance charts of the past few months make for an impressive reading. Funds across all categories boast of stellar returns. Sample this: The mid and small cap category has averaged 77 percent return over the past 12 months, with the best fund delivering a staggering 120 percent. The tax-saving funds also average an impressive 51 percent, including a fund which has soared 92 percent. Many of the table-toppers are funds of proven quality and track record. However, there are also schemes that are not that well-known. Some of these have rarely made it to the performance charts in the past, yet, of late, they bo...
Read more

8% Government of India Bonds quick guide

For those seeking comfort in safety of returns, the Government of India issued 8% savings bond once again comes to the fore. First launched in 2003, these bonds are issued by the government with a maturity of 6 years. The bonds are available at all times with specified distributors through whom you can apply to invest in them. Here is a quick guide to what the bond offers and its features to ascertain to check for suitability. What are Government of India bonds Government of India bonds are like any other government bonds with specified rate of interest. The rate is fixed at 8% per annum paid half yearly, or you can opt for cumulative payment of interest at the end of the tenure. You can buy these bonds from State Bank of India and its associates, other nationalized banks and some private sector banks such as HDFC Bank Ltd and ICICI Bank Ltd, among others. The bonds can be bought from the offices of Stock Holding Corporation of India as well. They are available in physical form onl...
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