Portfolio Management Service (PMS)

PMS is a tailor-made professional service offered to cater the investment objective of different investor classes. The clients can be Individuals or Institutional entities with high net worth. In simple words, a PMS provides professional management of investments to create wealth. PMS offers various customized portfolios depending on investors risk appetite and returns expectation. In such discretionary portfolios, fund manager takes investment decision on behalf of the investor.

Features of PMS

·   Professional ManagementPMS provides professional management of portfolios with the objective of delivering consistent long-term performance while controlling risk.

·  Risk Control :  Well defined investment philosophy & strategy acts as a guiding principle in defining the investment universe. Further, professional management ensures disciplined portfolio construction, monitoring and the risk management processes.

·  Transparency :  Most of the PMS houses provide account statements and performance reports on a monthly basis along with web access to track all information relating to investments made ensuring enhanced transparency.

·  Personalized Approach :  In PMS, investor gain direct personalized access to the professional money managers who actively manage their portfolios. This interaction may come in various different ways including in-person meetings, conference calls, written commentary, etc with the fund management team.

Benefits of PMS

·  Stock selection is based on high level of investment expertise and research.

·  PMS normally has a concentrated portfolio of 15-20 stocks.

·  A concentrated portfolio increases the potential of higher returns.

·  Clients receive regular reporting and personal service

·  PMS are transparent in terms of expenses they charge


Alternative Investment Fund (AIF)

In AIF schemes, pooled Investments made in venture capital, private equity, hedge funds, long short strategies etc. are called alternative investments. In other words, an investment not made in conventional investment avenues such as stocks, bonds, real estate etc. may be considered as alternative investments.

Alternative Investment Funds (AIFs) are defined in Regulation 2(1) (b) of SEBI (Alternative Investment Funds) Regulations, 2012. It refers to any privately pooled investment fund, in the form of a trust or a company or a body corporate or a Limited Liability Partnership (LLP).

As per SEBI, AIFs are classified in three broad categories. Category I & II AIF are close ended & the tenure of the scheme is minimum three years. Whereas Category III AIF can be open ended or close ended.

Category I AIF

·  Mainly invests in start- ups, SME's, social ventures, venture capital, infrastructure or any other sector which Govt. considers economically and socially viable for the Indian economy.

·  Venture Capital Fund Infrastructure Fund Social Venture Fund Angel Fund

Category II AIF

·  These include Alternative Investment Funds such as private equity funds or debt funds which invest in equities and/or debt securities and which are not provided by any specific incentives or concessions by the government or any other Regulator.

·  Private Equity Fund Debt Fund Fund of Funds

Category II AIF

·  Alternative Investment Funds such as hedge funds or funds which trade with a view to make short term returns or such other funds for which no specific incentives or concessions are given by the government or any other Regulator.

·  Hedge Fund

·  Private Investment in Public Equities (PIPE) Fund