Question 1

What is a Portfolio?

Accepted Answer

A combination of various investment products like Bonds, Shares, Mutual Funds, Insurance products, Term Deposits with Banks & Corporates, Various Schemes of Post-office, Bullions, Properties, Antiques, Art Collections and so on is called a ‘Portfolio’.
 
A Portfolio may comprise of one or any of the above mentioned assets in different proportions as per one’s knowledge, awareness, confidence and capacity to invest in such investments/assets.
 
As a PMS provider, we invest only in instruments conforming to SEBI (PMS) regulations. new question go to app settings and press "Manage Questions" button.

Question 2

Who is a Portfolio Manager?

Accepted Answer

A Portfolio Manager is a body corporate who, pursuant to contract or arrangement with a client, advises, directs or undertakes Management or administration of a Portfolio of securities or the funds on behalf of the clients.
A Portfolio Manager, only after having specific SEBI registration can render portfolio management services to clients.

Question 3

What is Portfolio Management Services?

Accepted Answer

Portfolio Management Services (PMS) is a niche job of providing customized services to specific segment of individual or corporate clients individually or collectively as per the contracted agreement. The portfolio manager, before taking up an assignment of management of funds or portfolio of securities on behalf of the client, enters into an agreement in writing with the client, clearly defining the inter se relationship and setting out their mutual rights, liabilities and obligations relating to the management of funds or portfolio of securities, containing the details as specified in Schedule IV of the SEBI (Portfolio Managers) Regulations, 1993.
Portfolio Management Services (PMS), service offered by the Portfolio Manager, is a customized investment solution offered by professional money managers to select individuals to meet specific investment goals. Although Portfolio Manager may oversee a number of portfolios an individual’s portfolio may be unique.
Discretionary PMS: Under these services the choice as well as the timing of the investment decision rests solely with the Portfolio Manager.
Non Discretionary PMS: Under these services the portfolio manager only suggests the investment ideas. The choice as well as the timing of the investment decision rest solely with the investor. However the execution of the trades are done by the Portfolio Manager
Advisory: Portfolio Manager only advises on Portfolio strategy (asset allocation), Purchase/sale of securities, etc. Investment decisions, timings, execution of trades rest with the clients.

Question 4

How is PMS different from a Mutual Fund?

Accepted Answer

Management
PMS: Provide ongoing, personalised access to professional money management services
Mutual Fund: Provide access to professional money management services
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Customisation
PMS: Portfolio is tailored to address each investor's specific needs
Mutual Fund: Portfolio is structured to meet the Scheme’s stated investment objectives
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Ownership
PMS: Investors directly own the individual securities in their portfolio, allowing for tax management flexibility
Mutual Fund: Unit holders own units of the fund and cannot influence buy and sell decisions
 
Liquidity
PMS: Although managers may hold cash, they are not required to hold cash to meet redemptions
Mutual Fund: Mutual funds generally hold some cash to meet redemptions
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Confidentiality
PMS: Portfolio confidentiality is maintained
Mutual Fund: No confidentiality for portfolio.

Question 5

Who can invest in PMS?

Accepted Answer

Both Individuals and non individuals can invest in PMS
High Net-worth Individuals (HNIs)
Hindu Undivided Families (HUFs)
Central/State Government Entities
Public/Private Pension, Gratuity & Provident Funds
Educational/Charitable Institutions/Trusts
Business Enterprises, etc                                                                                                Investment solutions under the PMS will cater to the niche segment of clients both individuals and institutions with high net-worth in asset classes like equities, debt, structured products etc. This segment desire and customised investment solutions for long-term wealth creation and appreciate personalised services.

Question 6

Benefits of PMS?

Accepted Answer

Professional Management.
Customised Investment Portfolio.
Personalised Service
Flexible Asset allocation & Transparent operations
Long-term wealth creation

Question 7

What options of payments does an investor have while initiating a PMS account?

Accepted Answer

An investor can invest in a Portfolio Management Services in the following ways, namely,
Through Direct cheque payment.
Through transferring existing shares, bonds, mutual funds etc held by the customer to the PMS account. The Value of the portfolio transferred should be above the minimum investment criteria
A combination of the above to meet the minimum investment criteria
The Portfolio Manager may at his discretion sell the existing securities in favour of fresh investments.

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