Portfolio Management Services (PMS) FAQ's
Portfolio Management Services (PMS) FAQ's Page
Frequently Asked Questions about Portfolio Management Services (PMS) investments in India
PMS Basics
Portfolio Management Services (PMS) is a professional financial service where a portfolio manager manages an individual's investment portfolio in securities according to agreed terms and conditions. In India, PMS is regulated by SEBI.
PMS offers personalized portfolio management with direct ownership of securities, typically for HNIs, while mutual funds pool money from many investors to invest in a diversified portfolio managed collectively.
Eligibility & Account
The minimum investment amount for PMS in India is typically ₹50 lakhs, as per SEBI regulations.
PMS is primarily designed for high-net-worth individuals (HNIs), trusts, family offices, and institutional investors.
Fees & Charges
PMS typically charges three types of fees: Management fee (0.5%-2.5% of AUM), Performance fee (10-20% of profits), and Brokerage charges.
Management fees are not directly tax deductible but reduce your overall returns which are then taxed accordingly.
Taxation
Taxation depends on holding period: STCG (held <12 months for equity) taxed at 15%, LTCG (held >12 months) taxed at 10% over ₹1 lakh exemption for equity.
NRIs investing in PMS are subject to TDS on capital gains and dividends as per Indian tax laws.
Performance & Risks
Returns vary based on strategy and market conditions. Historically, top PMS schemes have delivered 12-18% CAGR over long periods.
Key risks include market risk, concentration risk, manager risk, and liquidity risk.
Regulatory
While SEBI regulates PMS providers, investments are subject to market risks. Client assets are segregated from the manager's assets.
Your securities are held in a separate demat account in your name, so they remain yours.
Disclaimer: Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing.
This communication is intended solely for general educational and informational purposes. The information provided is general in nature and does not take into account the specific financial goals, risk profile, investment horizon, financial circumstances or other requirements of any particular investor. It should not be construed as personalised investment advice or as a recommendation to buy, sell or hold any specific financial product.
Portfolio Management Services (PMS) are regulated by SEBI (Portfolio Managers) Regulations. Meta Investment is registered with APMI (Association of Portfolio Managers in India) as a PMS Distributor (Registration No. APRN01448). Portfolio Management Services (PMS) are subject to market risks. The value of investments may fluctuate and investors may lose part or all of their invested capital. There is no assurance or guarantee of any specific return or performance.
Past performance is not indicative of future performance. Any return, performance data, illustration or projection mentioned is for information purposes only and should not be construed as a promise, assurance or guarantee of future returns.
PMS investments involve risks including, but not limited to, market risk, volatility risk, liquidity risk, concentration risk, credit risk and other risks associated with the underlying securities and investment strategy.
Investors should carefully read and understand the Portfolio Manager's Disclosure Document, client agreement, fees and charges, investment strategy and other relevant documents before making an investment decision.
Distributor Disclosure: Where this content is provided by a distributor/intermediary, any applicable commission, remuneration, affiliation or other material conflict of interest shall be disclosed separately. The availability of a product through the distributor does not by itself imply that the product is suitable for every investor.
No Guarantee: No statement on this page should be interpreted as a promise, assurance or guarantee of returns or investment outcomes.
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