Who is a Portfolio Manager?

A portfolio manager is a body corporate, which, pursuant to a contract with a client, advises or directs or undertakes on behalf of the client (whether as a discretionary portfolio manager or otherwise) the management or administration of a portfolio of securities or goods or funds of the client.

What is the difference between discretionary portfolio management service and non-discretionary portfolio management service?

In discretionary portfolio management service, the portfolio manager individually and independently manages the funds and securities of each client in accordance with the needs of the client. Under the non-discretionary portfolio management service, the portfolio manager manages the funds in accordance with the directions of the client.

Are investors required to open new demat accounts for a PMS?
Yes. For investment in listed securities, an investor is required to open a new demat account in his/her own name.
Can I bring in additional funds later?
PMS schemes are usually open-ended funds. Post your initial investment, PMS strategies accept additional top-up subject to minimum acceptance criteria. Some schemes also accept top-ups by way of SIPs (Systematic Investment Plans).
Can an NRI avail of the Portfolio Management Service?
Yes, NRIs can invest in the PMS strategies.
What is the tax treatment in PMS investment?
Gains within the fund in an investor’s Demat account will be taxed the same way as that of an investor directly buying or selling stocks. Short term capital gains (<1year) on equity are taxed at 15% plus surcharges and long term capital gains are at 10% plus surcharges.