A few frequently asked questions about Portfolio Management Services (PMS):
What is Portfolio Management Services (PMS)?
PMS is a portfolio of securities (equity, debt or other securities) held in a client’s name, but managed by a professional manager with specific investment objectives.
PMS is offered by SEBI registered portfolio managers who offer strategies with different styles, return targets, and objectives.
How is this different from a mutual fund?
In PMS, all your investments are held in your name, in a demat account. This is unlike a mutual fund investment where you own units of the fund. Depending
on the PMS, the portfolio can be customized to your needs in PMS. PMS also provides more access to the fund management team, depending on the service offerings
of individual managers. It is an offering meant for high net worth investors (the SEBI minimum is Rs. 5 lakhs) and institutions that have specialized needs
and require a high level of service.
Do I have to fund my account only in cash?
PMS accounts at Forefront can be funded by a combination of cash or existing securities, which will be used by us to make investments.
What are the tax implications?
In general, investments in PMS are treated in line with your own investments in capital markets. However, you should consult your tax advisor for
information specific to you.
Is this available to NRIs?
Yes, PMS is available for NRIs. At Forefront, we have a large NRI client base and welcome queries from NRI investors about PMS services.
What are the fees in PMS?
PMS firms can charge one or both of fixed fees and performance linked fees depending on the product. A fixed fee is a management fee (as in a mutual fund),
charged as a percentage of assets under management. Performance fees are charged as a percentage of returns above a certain hurdle rate. Please contact us
for the fee structures on our products.
How do I open an account?
As part of PMS, investors open a bank and demat account in their own name with a registered custodian. Forefront takes care of this process with investors.
Please contact us to start the account opening process.
If you have any more questions, please .
|