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FAQs

Q. :- What is a Portfolio Management Service?

A. :- Portfolio Management Services (PMS) is an investment portfolio in stocks, fixedincome, debt, cash, structured products and other individual securities, managed by a professional money manager that can potentially be tailored to meet specific investment objectives. When you invest in PMS, you own individual securities unlike a mutual fund investor, who owns units of the entire fund. You have the freedom and fiexibility to tailor your portfolio to address personal preferences and financial goals. Although portfolio managers may oversee hundreds of portfolios, your account will be unique.

Q. :- What is the difference between a discretionary portfolio manager and a non discretionary portfolio manager?

A. :- The discretionary portfolio manager individually and independently manages the funds of each client in accordance with the needs of the client in a manner but investments are made at the portfolio manager’s discretion. A non-discretionary portfolio manager manages the funds in accordance with the directions of the client. We offer only Discretionary PMS at the moment.

Q. :- Is the PMS governed by any regulatory body? Who can offer PMS?

A. :- Yes, Portfolio Management Services are completely supervised by the regulator of capital markets in India, SEBI. PMS can be offered only by entities having specific SEBI registration for rendering portfolio management services. Currently in India, it is offered by specialized PMS players, asset management companies (AMCs) and brokerage houses.

Q. :- Who can sign up for PMS?

A. :-

  • Resident Individuals & Hindu Undivided Families (HUF)
  • Body corporate (Private/Public)
  • Trust (Registered)
  • Non Resident Indian (NRI)*
  • Partnership Firms or any other eligible investor
    * Subject to RBI approval
Q. :- What are the qualifications to open an account?

A. :- You must be over 18 years and either a Resident Indian or a Non-resident Indian. Also, the investor should have a minimum investment amount of INR 25,00,000.

Q. :- How are you different from a mutual fund? Why should I select PMS?

A. :-

The differentiators between Mutual Funds and PMS are:
FEATURES MUTUAL FUNDS PMS
PM Access No access to Portfolio Managers (PM)

Direct access to PM who share updates on portfolio strategy and emerging trends

Customization

Portfolio structured to meet the fund`s stated investment objectives applicable for all investors

Portfolio can be structured to address each investor’s specific needs/risk appetite such as not holding a particular stock, sector, Shariah philosophy or any other ethical investment style

Ownership

Unit holders own units of the fund and cannot influence buy and sell decisions or control their exposure to incurring tax liabilities

Investors directly own individual securities in their portfolio, allowing for tax management fiexibilit

Liquidity Mutual funds generally hold some cash to meet redemptions

Although managers may hold cash, they are not required to hold cash to meet redemptions. Flexibility in investing corpus

Minimums Normally INR 5000/- minimum for lump sum investment.

As compared to mutual funds, SEBI specifies a higher minimum investment of INR 25 Lakhs

Flexibility

Mutual funds are comparatively less fiexible. Have the mandate to stay invested up to 65% in equities across most of the time period as stated in the investmen objective for the scheme. Also, known to be inactive in cash management strategy

PMS has greater fiexibility in comparison to mutual funds. For e.g. the portfolio manager may move to 100% cash if required. Investment is done by the portfolio manger once an appropriate opportunity arises in the market.The manager can also manage a portfolio with disproportionate allocation to select compelling opportunities

Number of Stocks Most mutual fund schemes have anywhere between 50-60 stocks

PMS generally has a focused portfolio of 15-20 stocks, enabling portfolio managers to carry out meaningful allocation of stocks/sector where he/she is most bullish about

Q. :- Can I meet my portfolio manager and discuss portfolio?

A. :- Of course! Our investors should feel free to request an appointment with us and we will promptly arrange a meeting with our Portfolio Manger (PM) to discuss your portfolio or answer other investments related queries.

Q. :- Can Portfolio Manager impose a lock-in on the investor?

A. :- Portfolio managers cannot impose a lockin on the investment of their clients. However, PLUS DELTA charges exit fees
from the client for early exit, as specified in this brochure.

Q. :- Is there a minimum investment amount required to invest?

A. :- Yes, the minimum corpus is Rs 25 Lakhs.

Q. :- What is the cost of PMS?

A. :- PLUS DELTA allows a choice between a fixed and a performance-linked management fee or a combination. In addition, actual expenses like custodian expenses, audit fee, brokerage on transactions, etc. are charged on actual. For charging performance-based fee, the concept of high watermark is typically applicable

Q. :- Do I need to have a PAN card?

A. :- Yes, you need to have PAN card as it is being made mandatory for all transactions in capital markets by SEBI.

Q. :- Can I open a PMS account with securities and cash combination?

A. :- Yes, Clients can open a PMS account with a combination of securities and cash. However, we will re-align the securities based on the price on the on the particular day of transaction.

Q. :- Can I withdraw funds any time?

A. :- Yes, you can withdraw funds anytime you want, provided your portfolio does not fall below Rs 25 lacs limit, as per the SEBI requirement.

Q. :- Do you charge any exit load?

A. :- No, except if you redeem in the first and second year when we charge a fee. Other than that, you can make part withdrawals from your portfolio for any provided your portfolio value does not fall below Rs 25 lacs as per SEBI requirement. Details of charges are mentioned in this brochure as well as in the form. Our charges are in line with most of other PMS Schemes.

Q. :- What if I want to terminate my PMS account?

A. :- To terminate your PMS account, you will need intimate us through an email or post. In the event of a full withdrawal, please allow us about 2 weeks for orderly trimming of your stock holdings.

Q. :- What asset classes do you invest in under your PMS?

A. :- PLUS DELTA PMS is an equity-oriented service. We invest in equity and equity related products under our PMS.

Q. :- What is the time horizon with which the corpus money is invested by the PMS?

A. :- For PLUS DELTA MULTICAP strategy, investment horizon is 3 to 12 months while for PLUS DELTA VISION strategy, it is 6 to 24 months

Q. :- Do you invest in Derivatives (Futures/Options)?

A. :- Following SEBI guidelines, PLUS DELTA invests in the derivatives including transactions for the purpose of hedging and portfolio rebalancing, through a recognized stock exchange. PLUS DELTA policy will be to use Derivatives only as a hedging strategy.

Q. :- Do you indulge in day trading under the Portfolio Management Service?

A. :- SEBI guidelines forbid any day trading activity by Portfolio Managers. Thus, PLUS DELTA follows the same.

Q. :- Are returns guaranteed by your PMS?

A. :- As per SEBI rules, no portfolio manager can guarantee returns. Hence we are not permitted to guarantee any returns.

Q. :- Is my investment principal safe? Is there any guarantee for the principal invested?

A. :- No. As Investments are subject to market risk, There is no guarantee on safety of the principal investment. But over the long run, Clients are likely to earn several percentage points.

Q. :- What reports will I get during my relationship with your PMS?

A. :- Holding, transaction and corporate announcement statements (dividends, bonus, etc) will be provided quarterly along with the fund manager’s commentary on the decisions taken with your portfolio and his assessment of the future of your portfolio constituents. You will have access to the front end of the PMS software and can use your login & password to check the progress and details of your account.

Q. :- Where can I redress my complaints on the PMS?

A. :- You can register your complaints on the Sebi COmplaints REdress System (SCORES).

Q. :- What are the tax implications of investments under PMS?

A. :- Each transaction is considered as an independent trade and capital gains tax are applied on each transaction depending upon whether the relevant stock was held for the long term or short term. Currently, 15% tax is chargeable for short term capital gains and 10% tax on long term capital gains. capital gains in India. The STT charges will also apply. Investors will receive relevant details on his transactions but he has to take care of his taxation matters.

Q. :- Does the PMC account allow me access to other services of Growth Avenues / Chart Advise?

A. :- No. Only the PMC is offered. For all other services, please contact either Growth Avenues or Choice Stock Broking.

PMS Fees Structure