Faq's
PMS Faq's
What is PMS?
Portfolio Management Services allow a professional portfolio manager to manage an investor’s holdings in listed securities and funds under discretionary, non-discretionary, or advisory mandates as per a formal agreement.
Who is an ideal PMS investor?
HNIs who want a customised and professionally managed portfolio, better control and visibility than mutual funds, and a long-term wealth-building strategy tailored to their risk profile.
Minimum investment in PMS?
₹50 Lakhs, which can be contributed either in cash or by transferring eligible securities as per SEBI guidelines.
How can one invest in PMS?
Investors can fund the PMS via bank transfer or by transferring approved stocks. KYC, agreements, and risk profiling are part of the onboarding.
Where can portfolio managers invest?
Discretionary PMS invests mainly in listed equities, money market instruments, and direct mutual funds.
Non-discretionary PMS can additionally invest up to 25% in unlisted assets such as AIFs, REITs, InvITs, and certain debt instruments.
Taxation in PMS?
Taxation is the same as direct investing—capital gains or business income depending on the transactions. PMS provides detailed audited statements each year for tax filing.
Benefits of PMS?
Professional management, active monitoring, disciplined risk control, personalised strategies, operational convenience, and transparent online reporting.
Risks of PMS?
Returns depend on market conditions and the securities selected. Market volatility and capital loss are possible. Reviewing the Disclosure Document is important before investing.
AIF Faq's
What is an AIF?
An Alternative Investment Fund is a privately pooled investment vehicle regulated by SEBI under the AIF Regulations, 2012. These funds invest beyond traditional equity and debt markets and are classified into Category I, II and III based on their investment approach.
Who is an ideal AIF investor?
HNIs or institutional investors who want access to non-traditional opportunities, professionally managed portfolios, diversification, and higher long-term return potential. They should also be comfortable with longer lock-ins.
Minimum investment for AIF?
₹1 Cr per investor, while employees or directors of the fund can invest a minimum of ₹25 Lakhs. Each AIF scheme must also maintain a minimum corpus of ₹3 Cr.
How can one invest?
Investors commit capital upfront and then fund drawdowns as called by the AIF. Standard KYC documentation and signing the fund agreement (PPM) are mandatory.
Where can AIFs invest?
Depending on the category, AIFs may invest in startups, unlisted companies, private equity, venture capital, structured debt, distressed assets, infrastructure, or hedge-style strategies. Category III funds may use leverage within SEBI limits.
Taxation in AIF?
Category I & II funds enjoy pass-through taxation (except business income), meaning investors are taxed directly. Category III funds are taxed at the fund level. Consulting a tax expert is advisable.
Benefits of AIFs?
They offer access to unique private-market opportunities, expert fund management, portfolio diversification, and the possibility of superior long-term returns under a regulated structure.
Risks of AIFs?
AIFs come with illiquidity, strategy-specific risks, leverage (in Cat-III), long lock-ins, and potential capital loss. Investors should carefully read the Private Placement Memorandum.
