India is well-known for having the world’s largest and wealthiest expert community. As the Indian economy grows, these wealthy individuals become more interested in investing in Indian equities. Many advisory firms, brokerage firms, and banks now offer products and services tailored specifically to the NRI investment in PMS. Portfolio Management Services, or PMS, is one of these products and services.
What are the benefits of PMS benefits for NRIs?
- Expert advice for NRIs.
- Non-biased investing approach.
- Suggestions based on deep research and market parameters.
- Build a strong and diverse portfolio.
- High returns through reduced financial risk.
- Customised portfolio investment attribute.
We can customise PMS for fixed income, stocks, cash, debt, structured products, and other individual securities to fulfil particular investment purposes. Unlike mutual funds, which allow you to own units of the fund, investing in PMS allows you to own individual securities. It is adaptable and allows you to tailor your portfolio to your liking and financial objectives.
What precisely is a Portfolio Management Service?
PMS is a customised wealth creation solution for high-net-worth individuals that invests in equities, debt, and other securities through a dedicated fund manager based on the investor’s investment goals. Portfolio management services are preferred by many classes of investors who want personalised financial solutions and portfolio construction, easy access to the fund manager and a focus on long-term wealth creation. A minimum corpus is generally required for investments in PMS schemes offered by various organisations registered in India.
Why should an NRI consider investing?
Here are reasons why an NRI should engage and look for the best NRI investment in India.
- Retirement plan:
Preparing for old age begins today. It should have started yesterday. You must save money in various investment forms to ensure a secure retirement plan. The amount of wealth you store invest will determine your retirement standard of living.
- Return on investment:
Money spent wisely will yield greater profits. Investing money is an excellent example of this. Whatever you invest in India will grow in accordance with the interest rate or growth rate. An investment’s interest rate usually indicates how risky it is. A higher interest rate indicates that the investment is riskier. Invest wisely to guarantee good returns on investment without taking unnecessary financial risks.
- Send money to the family:
Your current salary should be sufficient to support you and your family members. However, if you invest in NRI investment possibilities in India, you will have more money to spend. You can send some of your additional money back home to family members. Better yet, converting dollars to rupees may provide your family with the assistance they require.
- Build financial assets:
Investing aids in the growth of your financial wealth and the accumulation of financial assets. Purchasing property, for example, implies that NRIs can rent it out for rental income. NRI investment in PMS can also be utilised as collateral when applying for loans. Secured loans have lower interest rates, resulting in lower loan payments. The best investment for NRI in India will assist you in increasing your financial assets as quickly as possible.
Why should NRIs spend in India through AIF & PMS ?
It is due to a variety of factors. One possibility is that many NRIs will want to return to India at some point. They will want to invest in stocks, equities, and alternative investments to have a nice nest egg for retirement or use it for other goals such as their children’s weddings, higher education, or building a home in India. Another reason is that investment opportunities such as PMS and AIF offer much greater returns than developed nations, so it makes sense to put money here.
PMS investment opportunity for NRIs:
NRIs can engage in PMS: NRIs (non-resident Indians) can also invest in the PMS. They can invest by opening a Portfolio Investment Scheme (PIS) Account, as the RBI requires.
- The NRI must appoint a stock broker in India who can buy and sell shares on his behalf. In addition, the NRI must open a separate NRI PMS Account and agree with the PMS service provider. The documentation process is often handled on behalf of the NRI by the stock broker or service provider.
- All other dos and don’ts apply to NRIs as part of the RBI’s PIS Scheme. These include limits on single stock investments or procedures for investments made on a repatriation and non-repatriation basis, as well as those relevant to share short-selling.
- Existing investments can also be transferred to the PMS service professional by the NRI. When the PMS contract expires, NRI investors can repatriate their net investments, net of taxes, if made through the NRE PIS Account.
- PMS fees can be fixed, performance-based, or a blend of both. These are expressed to the NRI investor and documented in the two parties’ agreement. Other charges, such as those for operating the PIS Account, demat maintenance fees, and transaction brokerage fees, must also be paid.
- Although they are more expensive and do not provide any tax benefits to NRIs, PMS services provide the benefit of customised, professional money management with quick access to the wealth manager. It provides flexibility in investment decisions, making them appealing investment avenues.
Portfolio Investment Scheme:
NRIs are only permitted to trade in the secondary market through the Portfolio Investment Scheme, which is only available at designated branches. All share sales and purchases must be made through this account only. It is critical to remember that you cannot speculate in shares and must take delivery. NRIs can also open a Non-PINS account, required for all IPOs and MF investments, and sell shares purchased as a resident Indian.
One account for three services:
A three-in-one account that integrates banking, trading, and demat services are the best option for NRIs.
What documents would an NRI require?
The required documents might be the followings.
- A copy of a valid passport, pages with your name, address, date of birth, date and place of issue, expiry date, photograph, address, and signature are required for an NRI PIS account.
- Proof of NRI status is provided as a valid Employment/Residence Visa copy or a Work/Residence Permit.
- A copy of the Indian PAN card
- Proof of Overseas Residence and Indian Address
- A recent colour passport photograph.
AIF & PMS Experts India is the leading financial adviser platform where optimistic NRI investors can get the best investment advice and hassle-free investing opportunity. We have years of domain expertise and can assist people with high returns. You can get in touch with us because we are the best consultant regarding NRI investment in PMS. People can contact us by email at [email protected] or phone at 8368586435 or 1800 210 1995. You can also reach us at https://aifpms.com/contact/