Q. What is the fees structure?
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(a)
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Upfront / Onboarding Fees
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Zero
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(b)
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Portfolio Management Fees
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i. Management / Fixed Fees
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Zero
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ii. Performance / Variable Fees
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15% sharing of the gains (0% threshold), based on High Water Mark Principle
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(c)
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Exit Fees / Charges
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i. Less than 1st year
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3%
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ii. 1 year to 2 years
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2%
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iii. 2 years - 3 years
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1%
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iv. After 3 years
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0%
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(d)
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Other Charges
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Brokerage, Custodian charges,
Fund Accounting charges and any other charges shall be as covered under the
Client Agreement
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Q. Why should I take PMS? (How is PMS different from MF?)
1. Better handholding from his portfolio manager than he has been accustomed to either on his own or from his broker or mutual fund.
2. One can also expect to interact with the portfolio manager to discuss any concerns that he might have, though not frequently.
3. All administrative matters, including operating a bank account and dealing with settlement and depository transactions, will be handled by the Portfolio Manager.
Q. What is the minimum and maximum limit for investing in Portfolio Management Services?
The minimum ticket size of the portfolio we offer for is Rs. 50 lakhs. There is no upper limit on the amount you can invest.
Q. How can I introduce my initial corpus?
Initial corpus can be brought only in form of funds
Q. Why should I pay performance fees?
The fixed management fee being charged is much lower than that charged by others. We have consciously kept our fee more performance linked, as we strongly believe that it will align the interests of the firm and the client. It also incentives the Portfolio Manager since they have a stake in the profitability of the portfolio.
Q. Will Tulsian PMS share the losses?
Portfolio Manager is any person who pursuant to a contract or arrangement with a client, advises or directs or undertakes on behalf of the client (whether as a discretionary portfolio manager or otherwise) the management or administration of a portfolio of securities or the funds of the client, as the case may be. It is only the service, which he gives to the client, for which he charges a fee, and it is not any partnership that he gets into with the client.
Q. Do you invest in IPOs?
If the Portfolio Manager finds any IPO, which presents a good investment opportunity then the Portfolio Manager will invest in the relevant IPOs.
Q. Do you invest in Derivatives (Futures/Options)?
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 only as a hedging strategy and will be restricted only to those portfolios, which have a short-term outlook on the investment strategy.
Q. Do you indulge in day trading under the Portfolio Management Service?
Our Portfolio Management 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. Therefore, we will not indulge in any day trading activities under the Portfolio Management Service. Moreover, SEBI guidelines forbid any day trading activity by Portfolio Managers.
Q. How and when can I see my Portfolio Value, Transactions and Reports?
All clients can access entire information related to their portfolios by log-in to the web account. These reports and transaction information is updated on the website every month. However, the NAV shall be updated weekly. The reports include Portfolio Snapshot, Transaction Statement, Holdings statement, and Realized gain/ loss statement. The client may also receive an e-mail regarding the same.
Q. Can I bring in additional funds later?
Yes, funds can be added later in the multiples of Rs. 10 lakhs.
Q. Can I partly withdraw my money from PMS account?
Yes, you can withdraw, provided the portfolio value doesn’t reduces below the minimum limit. You have to give a request for the same in writing. However, charges as agreed will be applicable.
Q. Do I need to have Permanent Account Number?
A Permanent Account Number (PAN) has to be provided for investment in the PMS scheme.
Q. Can an NRI avail of the Portfolio Management Service?
The Portfolio Management Scheme is open for all Indian nationals, resident or otherwise. For NRIs, there are additional procedures, systems, regulations and rules which need to be taken into consideration and hence, is done on selective basis. For proper guidance, contact us.
Q. How safe are my securities under the Portfolio Management Service?
Tulsian PMS ensures complete safety in operations. Stock ownership always rests with the client. We are a registered Portfolio Manager with Security Exchange Board of India (SEBI) vide Registration No. INP000005838, having perpetual validity.
Q. How will I know my tax status?
We expect all clients to consult their tax consultant before investing into any form of securities. At Tulsian PMS, we give each client an audited tax statement of his portfolio annually. The same can be used for tax purposes.
Q. Do you guarantee the initial corpus and any 'return' thereon?
As per SEBI regulations governing Portfolio Management Services in India, neither capital nor returns can be guaranteed. We shall endeavor to outperform the benchmark indices like Nifty but there can be no guarantee or certainty of the same.
Q. How long will it take to open the account?
7-10 working days from receipt and verification of Account Opening Form kit, which is complete in all respects.