PMS in India: List of Best Portfolio Management Services 2019

Best Performing PMS in India 2019

Whenever you invest in the share market with your personal understanding or when you are going to take your first step in the share market, you might had felt for the need of strong assistance which may support you in mining useful decisions on how to invest in stock market? which can secure your returns simultaneously.

PMS is the only preferred destination in this regard. It helps you out not only in making sensitive decisions on your money but it takes a whole headache regarding your portfolio management.

PMS in India

In our today’s discussion, the hot topic will be focused on PMS in India. Into this, we will read about-

  • What is PMS?
  • List of PMS in India
  • Best Performing PMS in India 2019
  • Types of PMS
  • What are the Benefits of PMS in India (Advantage)
  • Disadvantages of PMS
  • How can you invest in PMS?
  • Working of a PMS
  • PMS Charges in India
  • Taxation on PMS
  • Difference between PMS and Mutual Fund

PMS In India 2019

Well! We think that there is so much to discuss on and we have less time to read. So without any single second delay, let’s proceed.

What is PMS?

PMS means “Portfolio Management Services”. Actually, every share company has this service providing facility which facilitates its customers the back-end support for managing their portfolio.

The PMS provides you the experts who are well-versed with the market happenings and they can better guide you on important investment decisions. What else they provide, let’s see below-

  • They take the whole responsibility to manage your portfolio.
  • They understand your requirements for what kind of returns you actually expect from your investments and in which segments you prefer to invest in.
  • They track the market and invest your money keeping your requirements in their mind.
  • They tend to take such decisions which can prosper your wealth tremendously.
  • They advise you on whatever you are going to do in the share market.

The feature of PMS

  1. PMS is registered by the SEBI market regulator.
  2. PMS deals in Equity and debts.
  3. PMS services are availed by banks, brokers, independent investment managers, or AMC (Asset Management Companies).
  4. Actually, it is a kind of a drawback for retail or normal investors because PMS suits only to those who have a large affording power or who is a wealthy person. The PMS charges a large percentage of money from its users which are not within the capacity of a normal or average class investor. There are so many PMS in the markets that are providing such services. Their charges to manage your portfolio would really vary. Some charge 2.5 percent of the fund size, while others charge more.
  5. The minimum investment required to open a PMS account is Rs. 5 Lacs. However, different providers have different minimum balance requirements for different products.
  6. The service providers have different models portfolios for the investors which the investors can choose as per their financial goals and requirements. They can even customize them if they want some additional or want little adjustment.

When such attractive facilities are provided by the PMS then why not we will bother to know about the names of those PMSs.  In the upcoming next subtopic, you will see the best performing PMS in India and also come to know about their deep insight details.

Types of PMS

There are two types of Portfolios in PMS, you can choose any of them-

Discretionary PMS– Discretionary Portfolio provides the service provider a right to take decisions on behalf of the client, whether he wants to sell or buy the shares. He is not bounded to consult with the client.

Non-Discretionary PMS- This is the just reverse of the above. Here, the service provider consults with his clients on investment decisions or buying and selling of shares before transacting any event. The decision making power lies in the hands of the client only. The service provider can advise and assist them on things, but the final executions will be done according to the client’s order.

It is to be kindly noted that most PMS provides Discretionary portfolios in India.

Top PMS Services in India 2019

PMS of India List

  1. Porinju Veliyath Equity Intelligence PMS
  2. Motilal Oswal Next Trillion Dollar Opportunity PMS (NTDO)
  3. Kotak PMS
  4. Birla Sunlife PMS
  5. ASK India Select PMS

Top 10 PMS in India 2019

Porinju Veliyath Equity Intelligence PMS

This is the most powerful, leading and the largest PMS service in India. It was incorporated in the year 2002 founded by Porinju Veliyath.

The minimum investment you would need to buy this PMS is Rs 50 lakh. As per the past 5 years performance, it has been analyzed that the PMS has released the returns at the rate of 35% and in the last 1 year 47%. Isn’t it great!

There is also a piece of good news about this PMS is that there is no lock-in-period for your investment. It entertains the flexibility to their investors.it means that you can withdraw your money anytime.

There is no entry load and no exit load too.

Porinju Veliyath Equity Intelligence PMS charges 2% per annum for its management fees, 10% per annum of the returns for additional performance on it.

NRIs also can invest in this PMS of India.

Official Website:- https://www.rupeeiq.com/content/porinju-veliyaths-equity-intelligence-pms-has-annualised-returns-of-32-76/

Motilal Oswal Next Trillion Dollar Opportunity PMS (NTDO)

Next Trillion Dollar is a PMS provider and Motilal Oswal is an AMC which is providing this PMS service also with the name of NTDO.

It generally deals with small and mid-cap stocks, so it is good for short or medium term investors.

The minimum requirement to invest in this PMS scheme ranges is 25 lakh and these can be invested into any of the 25 stocks.

As per the past 5 year’s performance, it has been analyzed that the PMS has released the returns at the rate of 32% and in the last 1 year 19%.

NRIs can invest in this top pms in India. After Porinju, Motilal has been considered as the second best PMS provider in India.

Official Website:- https://www.motilaloswalmf.com/products/next-trillion-dollar-opportunity

Birla Sunlife PMS

Birla Sunlife PMS is a brand service provider of Aditya Birla, which has an AMC also. The Birla Sunlife PMS was established in the year 1994, providing its services in a whole range of investment products. They generally target those businesses which are priced less but can be yielding higher returns.

It charges variable fees or minimum investment for various category of portfolios. They are mentioned as under-

  • Core-Equity Portfolio-
    Minimum Rs 50 lakh of investment with a time horizon of 1 to 3 years.
  • Customized Debt Portfolio-
    25 Crores or as per SEBI regulations for a tenure of 3 months to 3 years.
  • Select Sector Portfolio-
    Rs 25 Crores or as per SEBI regulations for a tenure of 3 months to 3 years.

Official Website:- https://mutualfund.adityabirlacapital.com/investor-solution-portfolio-management-service

Kotak PMS

Kotak AMC PMS is one another best pms in India which is renowned. Kotak PMS is discretionary which invest in 10-25 stocks with various investment approaches to reap the higher returns.

Kotak PMS Fees & Charges

  • Kotak PMS charges a fixed management fee of 2.5% per annum payable quarterly.
  • This PMS won’t charge any performance fees which is key positive for you. However, it charges exit loads at 3%,2% and 1% for exiting within 1 year,2 years and 3 years respectively.
  • Also, it is been disclosed on the portal that there may be some additional charges for brokerage(0.1%), stamp duty, audit fees etc.
  • Official Website:- https://assetmanagement.kotak.com/portfoliomgmt/

ICICI Prudential Portfolio Management Services

ICICI Prudential Portfolio Management Services(PMS) enjoys a rich parentage of two large organisations ICICI Bank Ltd which is India’s largest private sector bank in addition to being one of the most trusted brands in financial services and Prudential Plc UK, an international financial services company, with significant operations in Asia, US and UK.

Product Offerings

  • Core Portfolio
  • Large Cap Portfolio
  • Flexi Cap Portfolio
  • Value Portfolio
  • Contra Portfolio
  • Thematic Portfolio
  • Infrastructure Portfolio
  • Export Portfolio
  • Wellness Portfolio
  • PIPE Portfolio
  • Absolute Return Portfolio
  • Enterprising India Portfolio

Official Website:- https://www.iciciprupms.com/

ASK India Select PMS

This PMS not only deals with the national citizens but also international people. To manage such a wide customer base all over the globe, there is an obvious need for a rand expertise ream, and so the ASK India has. It focuses on maximizing wealth in addition to taking care for reducing risks.

The investors can invest in any capital market like in mid-cap, short-cap, large-cap, multi-cap, value and growth and international assets.

Annually it charges 2% of the portfolio value.

There is a fixed fee of 1.5% of the portfolio and plus 20% of gains to be paid to them over and above 10% of profits. This is the performance-linked fees.

Official Website:- http://www.askinvestmentmanagers.com/

Pros and Cons of PMS

Advantages of PMS-

  1. You can transfer the headache of monitoring your shares and taking decisions on those shares part to the experts.
  2. You get the higher returns with the help support of well-knowledgeable guys.
  3. The experts manage your full portfolio which will provide your portfolio hassle-free management.
  4. You get a piece of expert advice across instruments from debt to equity to gold and mutual funds.

There is no limit to the extent to which you can invest in a certain stock. Although, there is the limit to minimum investment and that is Rs5 lakh.

The fees of the service providers for their so-called service are negotiable.

  1. The experts do not follow or cram the usual investing activities like what people usually do as they invest when the market is rising or vice versa. This is not so with the PMS experts. They take wise decisions and they deeply understand or analyze the market phenomenon. They keep your requirements in their mind and accordingly invests in the segment preferred.

Disadvantages of PMS-

  1. The PMSs requires a minimum investment of Rs5 Lakh according to the guideline s of the SEBI. This is a real drawback for the small investors who cannot enjoy the services of PMS.
  2. It shares only the profits, and not the losses.
  3. The tax implication is the same as what is imposed by normal investing in shares. No tax exemption is entertained here.
  4. The completion of the document requirement is complex and requires more time.
  5. You cannot customize the portfolio as per your needs. The only thing is you may have access to more information.

How can you invest in PMS?

If you wish to invest in PMS, then you have to contact the company service provider and sign certain documents regarding your agreement with the service provider, like- submit the following documents-

  1. a) You have to sign a PMS agreement with the provider.
  2. b) You have to sign a Power of Attorney agreement.

In addition to this, you have to provide documents to judge your authority and authenticity. These are-

  1. PAN
  2. Address proof
  3. Identity proofs

Points to be noted-

  • You have to open a Demat account, even if you already have one.
  • NRIs can invest in PMS of India.
  • The NRIs have to open a PIS account for investing in PMS, rather than the Demat account and the documents requirements are also different which are listed by every company.

You can invest in PMS in two ways.

  • Either you can invest via cheque or
  • You can transfer the shares in the shares which are already held by you in the PMS account but the value of those shares should be above the minimum investment criteria.

Working of a PMS

See, there are so many individuals in the market who are wealthy enough to entertain themselves with the services of PMS. All have different capacities for doing investments and so they are likely to make investments or pick up the PMS scheme on time variations.

These both factors of investment capacity and time variation mainly makes the PMS account of everybody unique in itself. Let’s again clearly mention the factors in the following bullets.

  1. Entry of investors at a different time.
  2. The difference in the number of investments by the investors
  3. Redemptions/additional purchase done by the investor.
  4. Market scenario – Eg If the model portfolio has an investment in Infosys, and the current view of the Fund Manager on Infosys is “HOLD”(and not “BUY”), a new investor may not have Infosys in his portfolio.

However, the investment is done according to the portfolio model chosen by the investor with the PMS Service provider. The customer will get the valuation of his portfolio on a daily basis from the PMS provider.

When you pick a PMS scheme, you have to first open your bank account and the demat account. The purpose of opening such accounts is to transact all the investment activities under your name only.

When you invest in any shares, then the dividend will be credited to your bank account while the shares will be credited to your demat account. In this way, the process continues.

Generally, the power of attorney to handle your bank and demat account lies with your portfolio manager. If you want to view your market status, then you can ask your manager to give your credentials to open the website and track your portfolio performance.

PMS Charges in India

We have talked about the minimum investment required by the PMS. Right? So, this investment has a percentage share of fees also for this service provider. You should see that what percentage of fees is charged by these service providers out of your total invested part.

Entry Load– Whenever you take an entry into the PMS, you are charged an entry fee which is generally termed as the Entry Load. It is 3% or it may vary.

Management Charges– This is a service charge for managing your portfolio. It may vary from 1-3%, depending upon the service provider. It is charged on a quarterly basis.

Profit Sharing Fees– If a PMS has profit-sharing agreements between the client and provider, in addition to other fixed fees, then this charge is based on such terms of an agreement.

Apart from the charges mentioned above, the PMS also charges the investors on following counts as all the investments are done in the name of the investor:

  • Custodian Fee
  • Demat Account opening charges
  • Audit charges
  • Transaction brokerage

Taxation on PMS

If the capital gains have been acquired by selling the equity oriented securities on recognized stock exchanges, then tax will be charged as follows-

  1. a) The long-term capital gains are exempted from taxes.
  2. b) Short-term capital gain is taxed @15% flat.

If the equities are not sold on the recognized stock exchanges then-

  1. a) Long-term capital gain is charged to tax at the flat rate of 20% after applying cost inflation index.
  2. b) Short-term capital gain on the above assets has to be aggregated with the investor’s other income and is taxable at the slab rates applicable to him.

Difference Between PMS and Mutual Fund

In mutual funds, your money was pooled into the money of other investors and you gain only the units in the fund. In the PMS, you directly own the shares of the company.

There is a wide variety of portfolio managers in PMS as compared to mutual funds. But it restricts the investor to detail out the information of the prospective manager regarding his past performance, past organizational structure, key personnel etc., because these managers have to present them a document called a disclosure document.

But there is no central place for these managers which can be referenced by the customers to analyze their performances and compare them and do a final selection.

The charges for mutual fund management experts are literally very minimum, but the cost of PMS is very high and can be afforded by only wealthy individuals.

We cannot manipulate your mind for the selection of mutual funds or the PMS as they both are significant in their own levels. While mutual funds are suitable for every personality group, PMS demands a higher class people to do investment.

But if you are among those who are interested to deal with the PMS, then don’t forget to analyze fully about various PMS available in the market. After all, you are going to invest a large lump sum amount into the Best performing PMS in India and it is not a joke. Right?

So, all the best for your investments.

Just share your experiences with us. You can also tell us your doubts and mention your suggestions too by commenting on the comment box.

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Thank you and keep investing.

Bye.

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