Benefits of being with PMS
Every investor, whether individual or corporate, has unique needs based on their objectives and risk profiles. We recognize the difference and design tailored investment advice to achieve specific investment objectives.
We offer professional management of your equity portfolio with an aim to deliver consistent returns while controlling risks.
We recognize that portfolios need to be constantly monitored and periodically churned to optimize the results.
The portfolios are managed through a strong research-driven investment process with complete transparency and highest standards of service.
You will get regular account statements and performance reports on a monthly basis. That's not all; web-enabled access ensures that you are just a click away from all information related to your investment.
Our Portfolio Management Service relieves you from all the administrative hassles of your investments. We provide periodic reporting on the performance and other aspects of your portfolio.
Dedicated Relationship Manager
Our Relationship Managers specialize in providing personal investment management services to achieve your investment objective.
You have greater control over the asset allocation, whereas it is automatic in a Mutual Fund.
The Portfolio can be customized to suit your risk-return profile.
The Portfolio Manager has relatively greater flexibility to move in and out of cash as and when required depending on the market view.
Typically, charges are lower and more transparent in PMS vis-a-vis a Mutual Fund.
Under the Portfolio Management Service, we do not pay any dividend to you. But if the companies in which we invest declare dividend, then the proportionate dividend will be allocated to you based on logical holding. This dividend shall be tax-free in your hands, and you have an option to withdraw partially (subject to residual corpus not going below the minimum stipulated sum).
You can make contributions/withdrawal subsequent to the initial corpus at regular intervals at your discretion. You have an option to withdraw partially (subject to residual corpus not going below the minimum stipulated sum).
We do not charge any entry or exit load. Our charges are transparent and are described in the documentation at the time of entering the scheme.
The discretionary portfolio manager independently manages the funds of each client, in accordance with the needs of the client in a manner which does not partake to character of a Mutual Fund. The client does not have any say over the decisions taken for the management of his/her portfolio. On the other hand, the non-discretionary portfolio manager only provides advisory services to the client where the client retains the decision-making powers in the portfolio. At present, we offer only Discretionary Portfolio Management Service.
As per regulations governing Portfolio Management Services in India, neither capital nor returns can be guaranteed.
We invest as per objectives of a particular scheme. We typically pay more attention to a company’s fundamentals, valuations and technical trends and lesser weightage to macro factors. Our portfolios do not mimic indices and are more governed by the bottom up approach.
The Portfolio Management Service has no lock-in period and you can make withdrawals by simply putting in a request for the desired amount. It is however, prudent, to specify the minimum period for which you are willing to invest at the time of signing the agreement. This will enable the portfolio manager to design the portfolio in accordance with your needs. It is also advisable to keep any equity portfolio invested over a longer term because in the long run, equities outperform most other asset classes.
As per SEBI regulations, the minimum size of the portfolio is Rs. 5 lacs.
There is no upper limit on the amount you can invest in the Portfolio Management Service. But there could be restrictions on the maximum limit under certain schemes.
Initial corpus can be brought into the Portfolio Management Service by way of Cheque and/or securities and shares. The initial portfolio of securities/shares will be re-aligned as per the model. We sell shares as required to get the holdings re-aligned as per the model portfolio.
You can check your Net Asset Value (NAV) on a daily basis by logging on to our website. In addition, you get monthly statements of transactions, holdings etc typically within 15 days of the ensuing month. You can also access these reports online.
All Portfolio Clients will receive the following reports on a fortnightly basis:
Performance Summary of Portfolios
Realized gain/loss statement
Half-yearly Review Report
In addition to the above, all portfolio clients will have access to the website where they can view their portfolios online.
In the current schemes, no such limits can be specified. However, you can make a request for a partial or full withdrawal at any time.
Under our schemes, we charge Performance Fees, which comprise of Management Fees and Profit sharing. To know more about the fee structure, you can get in touch with our relationship manager.
Performance fee is charged for two reasons:
Any PMS Scheme has an inherent cost structure, which is taken care of with a defined fee structure. Our fee structure is designed to ensure that a larger part of the fee is charged subject only to the performance of the fund.
World over, portfolio managers operate on a fee-based model comprising a fixed retainer and a share in profit. It also incentivizes the Portfolio Manager, since they have a stake in the profitability of the portfolio. For the purpose of performance fees, profit will be considered as Net Profit after all charges like management fee, brokerage, and custody related charges etc are taken into consideration.
Dealmoney (the Portfolio Manager) has a custodial arrangement with its own Demat Division, wherein all the shares pertaining to the relevant scheme will be kept in a pool account opened in the name of the relevant scheme. The breakup of the shares held in each individual account will be provided to the client in the Holding Statement. However, it depends on the Scheme – If you enter into a pool scheme, the securities will be held under the pool DP, and if you enter in a Non-pool scheme, the securities will be held in your name.
However, in case of NRI clients, a separate DP account will be opened for each client as per the SEBI guidelines.
In Case of Discretionary Portfolio Management Services, the discretion to invest primarily lies with the Portfolio Manager. Any securities/shares handed over as initial portfolio will be aligned to the model. Therefore, it is advisable that you should hand over only those securities/shares which you are willing to sell, and retain the ones you want to hold.
If the Portfolio Manager finds any IPO which presents a good investment opportunity, they will invest in the relevant IPOs.
Under SEBI guidelines, a Portfolio Manager is allowed to invest in the Derivatives Segment only to the extent of the value of the portfolio. This has also been mentioned in the Disclosure Document and clients are advised to read it carefully before investing. However, our policy will be to use Derivatives more as a hedging strategy.
While the Schemes allow investment in debt instrument, most of the portfolios are invested in the equity markets. In the Customized Scheme, however, only after having decided the asset allocation based on the risk/return profile of the client, will the portfolio be invested accordingly, which could also include debt instruments in the proportion best suited to the client’s risk-return profile.
SEBI guidelines forbid any day trading activity by Portfolio Managers. Therefore, we will not indulge in any day trading activities under the Our Portfolio Management Service. Moreover, Schemes are designed from a long-term perspective and we will invest in accordance with the objectives of each Scheme. It is advisable to keep any Equity portfolio invested over a longer term because in the long run, equities outperform most other asset classes.
It is the responsibility of the Client to deduct and pay T.D.S. to the Government Authorities
A Permanent Account Number (PAN) has to be provided for investment in the PMS scheme.
Under the Portfolio Management Scheme, each transaction scheme will be considered as an independent trade, and capital gains will be applied on each trade depending upon whether the relevant stock was held long-term or short-term. Presently, 10% tax is chargeable for Short-Term Capital Gain and no tax is chargeable on Long-Term Capital Gains. In addition, the relevant STT charges will also apply. The Tax applicability would also be governed by individual states, business, other investments etc. We advise you to take your tax advisor’s opinion before investing.
Under our PMS Schemes, there are two Kinds of schemes – Pool Scheme and Individual Scheme
If you are under a pool scheme, all transactions in each individual stock are pooled together for execution and then allocated to individual clients at the end of the day on the weighted average cost (as allowed under SEBI guidelines). This ensures that all clients get the benefit of a uniform rate to avoid discrepancies in portfolio performance. Since individual contracts cannot be generated under the pool system, portfolio clients will not receive Contract Notes/Bills. The Portfolio Manager gets contract notes/bills from the broker for the entire portfolio, which can be verified by any client with prior notice. However, as specified earlier, they will receive monthly Transaction Statements, which will enable the clients to see the transactions done in their respective accounts. Furthermore, we, at Dealmoney, give a chartered accountant-certified account statement, details of all transactions, dividend, short-term/long-term gains, etc. to meet accounting and tax requirements of our clients.
If the client is under an Individual PMS scheme (i.e. PMS in clients’ name rather than pool system), all the transactions will be in their name and the securities will lie in their name in the Demat account opened with us. The contract bills/notes would be in their name as well.
We do so in a situation where the rationale and the assumptions behind our investment idea is diluted or non-existent.
Documents mentioned in the Form (as per KYC norms)
A Joint Account can be opened under the PMS scheme and a nomination facility is available, whereby the account holder can specify the nominee.
Dealmoney does not indulge in proprietary trading. The company is professionally managed by a team with an impeccable track record, and is a profit-making entity, thereby lending safety to the customers’ money.
You can make subsequent withdrawal even of securities at regular intervals at your discretion.
No, you need not keep the day to day record of the transactions. You will be provided with monthly reports of all the transactions we carry out.
As long as the scrips are liquid enough and are saleable in the market, the portfolio will be accepted, else not.