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FAQ

  • +What is Portfolio Management Services (PMS)?

    PMS is an investment portfolio managed by a professional portfolio manager that can potentially be tailored to meet specific investment objectives. The investment solutions provided by PMS cater to a niche segment of clients. The clients can be Individuals or Institutional entities with high net worth.

  • +What is the difference between a mutual fund and PMS?

    Mutual Fund

    • Portfolio structured to meet the fund’s stated investment objectives
    • The trustee own shares of the fund and cannot influence buy and sell decisions.
    • Minimum Investment – Rs. 5,000
    • No customization possible

    PMS

    • Portfolio can be tailored to address each investor’s specific needs.
    • Investors directly own the individual securities in their portfolio.
    • Significantly higher minimum investment requirement than mutual funds. Minimum – investment – INR2.5mn
    • PMS products can be customized to meet special customer requirements

  • +What is the difference between discretionary and non-discretionary PMS? What is the role of portfolio manager in advisory role?

    • Discretionary: Investment choices and decisions solely rest with the Portfolio Manager.
    • Non-Discretionary: Portfolio manager only suggest the investment decisions. Choice and decisions solely rest with the investor. However execution of trade is done by the portfolio manager.
    • Advisory: Portfolio manager only suggest the investment decisions. Choice as well as execution of investment decisions rest with the Investor.

  • +Are PMS entities governed any regulatory body?

    Yes, Portfolio Management Services are supervised and regulated by SEBI, the capital markets regulator in India, SEBI.

  • +Who can open a PMS account with APMPL?

    You can open a PMS account with APMPL if you are

    • An Individual
    • A Hindu Undivided Families (HUF)
    • An Association of Persons
    • A Limited Companies

  • +Who is an ideal PMS investor?

    Investors who are:

    • Looking to invest in asset classes like equity, fixed income, structured products etc
    • Desire personalized investment solutions
    • Desire long‐term wealth creation
    • Appreciate a high level of service

  • +Is there a minimum amount that can be invested in a PMS account with APMPL?

    Yes, you must have a minimum corpus of INR2.5mn. However there is no upper limit on the amount you can invest.

  • +Can I transfer my existing securities holding to a PMS account?

    Yes, you can transfer your existing securities to a PMS account.

  • +Is there any lock-in period with APMPL PMS account?

    No, as such there is no lock in period but if an Investor wishes to fully exit within a year , there is a termination fee depends on the pricing option chosen.

  • +Do I need to have a PAN card to open a PMS account?

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

  • +Can I specify what sectors/stocks I do not want to own in my PMS account?

    Yes, you can specify at the time of opening an account with us or later on give us list of securities and sectors which you do not/cannot invest in your portfolio due to reasons like conflict of interests; religious beliefs etc and we will construct your portfolio accordingly.

  • +How do I keep track of my PMS account with APMPL?

    APMPL will send the account statements periodically giving details of your portfolio holdings and its performance.

  • +What will be the tax implication of investments in PMS?

    The tax liability of a PMS investor would remain the same as if the investor is accessing the capital market directly. Presently 15% tax is chargeable for short term capital gains and no tax is chargeable on long term capital gains in India (please refer to the existing Tax codes). The STT charges will also apply.

  • +What is the fee structure of a PMS account with APMPL?

    There are two types of fees:

    • Asset management fees
    • Performance fees

    Apart from these fees, investor will also be required to bear expenses arising out of transaction in the PMS account. Calculation of performance fees will depend on pricing option chosen by the Investor and will be net off the asset management fees and transaction fees.

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