ASK Investment Managers

• Advantage of Equities as an Asset Class
• High Net worth client's – Special Needs (customization)
• Personalized Attention
• Portfolio Manager takes buy / sell decisions on behalf of client. Client can always share his views, ideas and apprehensions, if any
• Portfolio Manager regularly interacts with client and updates him on portfolio strategy, performance and market outlook

The Investment solutions provided by PMS cater to a niche segment of clients. The clients can be Individuals or Institutions with high net worth.

The offerings are usually ideal for investors:

• who are looking to invest in asset classes like equity, fixed income, structured products etc
• who desire personalized investment solutions
• who desire long-term wealth creation
• who appreciate a high level of service

The following investors are eligible to invest through PMS:

• Resident Individuals
• Hindu Undivided Families (HUF)
• Body corporate (Private/Public)
• Trust (Registered)
• Non Resident Indian (NRI)*
• Partnership Firms or any other eligible investor.

* Subject to RBI approval

Apart from cash, the client can also hand over an existing portfolio of stocks, bonds or mutual funds to a Portfolio Manager that could be revamped to suit his profile. However the Portfolio Manager may at his own sole discretion sell the said existing securities in favour of fresh investments.

Yes. The portfolio manager, before taking up an assignment of management of funds or portfolio of securities on behalf of the client, enters into an agreement in writing with the client, clearly defining the inter se relationship and setting out their mutual rights, liabilities and obligations relating to the management of funds or portfolio of securities.

The tax liability of a PMS investor would remain the same as if the investor is accessing the capital market directly. However, the investor should consult his tax advisor for the same. The Portfolio Manager ideally provides audited statement of accounts at the end of the financial year to aid the investor in assessing his/ her tax liabilities.

When one has entrusted his money to a PMS, one can expect:

Handholding from his portfolio manager than he has been accustomed to from his mutual fund. One can expect to have a relationship manager/ financial advisor through whom he can interact with the fund manager at any time of his choice. One can also expect frequent (maybe monthly) interaction with the portfolio manager to discuss any concerns that he might have. To be updated on any major changes in asset allocation or in the Investment Philosophy relating to his portfolio. All administrative matters, including operating a bank account and dealing with settlement and depository transactions, will be handled by the Portfolio Manager.

On handing over one's money, he will receive a user-ID and password from the Portfolio Manager, which will grant him online access to his portfolio details. He can use these to check back on his portfolio as often as he likes.

Keeping track of capital gains (and losses) for the taxman can be a depressing chore, when one has furiously churned his investments throughout the year. Opting for PMS will free him of this chore, as a detailed statement of the transactions on his portfolio for tax purposes comes as a part of the package.

Most Portfolio Managers allow one to choose between a fixed and a performance-linked management fee or a combination. If one opts for the fixed fee, he may pay between 2.50-3.50% p.a. of portfolio value; this is usually calculated on a weighted average basis. This fee is apart from the actual expenses like custodian expenses, audit fee, brokerage on transactions etc, which may be charged on actuals. The structure for the performance-linked fee differs across players; usually, apart from a performance-linked fee usually it may include a flat fee.

The portfolio manager also gets to share a percentage of your profit - usually 15-20 percent - earned over and above a threshold level, which may range between 8 per cent and 15 per cent.

Apart from management fees, separate charges will be levied towards brokerage, custodial services and towards meeting tax payments. Usually the fixed fee component is charged on a monthly basis and the variable component is charged on a yearly basis. When one opts for a performance-based fee, the profits are reckoned usually on the basis of "high watermarking". That is, one pays the fee only on the positive returns on his portfolio.

PMS is offered in a wide variety of asset classes and investment styles, including large cap, mid cap, small cap, multi cap, value and growth and international asset.

Yes. All investments involve a certain amount of risk, including the possible erosion of the principal amount invested, which varies depending on the security selected. For example, investments in small and mid-sized companies tend to involve more risk than investments in larger companies.