Frequently Asked Questions PMS

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Portfolio Management Services (PMS) is an investment service tailored for high-net-worth individuals (HNIs), offering a professionally managed portfolio consisting of stocks, fixed income, debt, cash, and structured products. With PMS, you own individual securities, providing the freedom to customize your portfolio according to your specific needs and objectives.

Absolutely. PMS is a highly customized solution designed for HNIs, offering greater flexibility and potentially higher returns. If you have a substantial amount to invest, PMS can be a beneficial service, especially when seeking the best PMS service in India.

While mutual funds cater to a diverse group of investors, PMS is often reserved for high-net-worth individuals. Mutual funds are strictly regulated by SEBI, providing transparency, whereas PMS offers a more personalized approach.

Portfolio managers typically charge a fixed fee of 1.5% of the capital invested. Additionally, if the investor gains 10% or more on the invested amount, a 20% profit share is applicable

Yes, all investments carry some level of risk. The degree of risk varies based on the chosen assets. Small and mid-sized businesses, for example, pose higher risks compared to larger enterprises.

Professional money managers provide PMS to educated clients, customizing portfolios to individual investment goals. PMS service providers invest directly in equities through targeted portfolios.

Professional fund managers in PMS have historically generated better returns than direct equities and mutual funds over longer tenures.

A PMS investor’s tax burden aligns with direct capital market access. Consultation with a tax expert is advised, and at the end of the financial year, the Portfolio Manager issues an audited statement to assist in determining tax responsibilities.

PMS and AIF cater to different preferences; while AIF offers a wide range of investments, PMS primarily focuses on listed securities.

PMS, or Portfolio Management Service, is a professional service where qualified portfolio managers manage equity portfolios on behalf of clients, providing a personalized approach.

A portfolio manager is a professional responsible for making investment decisions, managing portfolios, and trading on behalf of individuals or institutions.

A portfolio manager is required to have a minimum net worth of INR 5 crore.

Portfolio managers charge fees based on the agreement with the customer, which may include a set sum, a performance-based fee, or a combination. Advance fees are not allowed.

Apart from cash, clients can provide an existing portfolio of stocks, bonds, or mutual funds to be revamped. The Portfolio Manager has the discretion to sell existing assets for fresh investments.

Both individuals and non-individual entities, such as HUFs, partnership firms, sole proprietorship firms, and corporations, can invest in PMS.

PMS caters to individuals with high net worth seeking personalized investment solutions for asset classes like stocks, fixed income, and structured products.

A PMS investor’s tax burden is akin to direct access to the capital market. Consultation with a tax professional is recommended, and the Portfolio Manager issues an audited statement at the end of the financial year to assist with tax responsibilities.

Yes, all investments carry some level of risk, which varies based on the chosen asset. Small and mid-sized businesses pose higher risks compared to larger enterprises.

Apart from cash, clients can provide an existing portfolio of stocks, bonds, or mutual funds to be restructured. The Portfolio Manager has the exclusive option to sell existing assets in favor of new investments.