Portfolio Management
Services

Portfolio Management Service is a customised wealth solution with investments in equity, fixed income, debt, and other individual securities managed by a professional fund manager, created to suit the investment objective of an investor.

Discretionary: In case of Discretionary Portfolio Services, the investment and decision making process rests solely with the Fund Manager.

Non Discretionary: A non-discretionary portfolio manager manages the funds in accordance with the directions of the client. The trade is carried out by the portfolio manager but the choice as well as the time of investment decisions rest solely with the investor

Advisory: Under this service, the portfolio manager suggests the investment options. The choice as well as the execution of the investment decisions rest solely with the investor.

Portfolio Management Services is offered by entities that are registered with SEBI. The PMS operates under very strict regulatory norms laid down by SEBI.

Cash Management: The Portfolio Manager has relatively greater flexibility to move in and out of cash as and when required depending on the market view. They are allowed to shift from being fully invested in equities to 100% cash at any time. This is one thing most mutual funds cannot do, since their schemes are such that they have to stay invested in equities up to a certain minimum limit (which can be as high as 90%) and cannot go below that, even if they are bearish on the market.

Hedging: A PMS are also allowed to hedge their exposure through derivatives, which helps them in protecting their portfolio from market volatility. Not all mutual funds use derivatives in their investment strategy

Fee Structure: Mutual Funds have a fixed fee structure. PMS providers usually offer more than one option with the same fee structure

Accountability: PMS Managers are directly answerable to the client, whereas mutual fund managers have no such obligations. PMS are much more approachable to the clients. You can meet your portfolio manager, discuss with him his / her strategy and can get all your queries resolved. In fact most of the PMS Managers ensure that they personally stay in touch with the clients. However, this is not possible in mutual fund investment as there may be thousands of investors invested in a particular scheme and the fund manager may not get time to talk and discuss with all of them.

The Investment solutions provided by PMS cater to a niche segment of clients. The clients can be Individuals (HNIs/NRIs) and Non-Individuals such as HUFs, partnerships firms, sole proprietorship firms and Body Corporate. PMS is ideal for investors who:


a. Looking to invest in asset classes like equity, fixed income, structured products, etc.

b. Desire personalised investment solutions

c. Desire long‐term wealth creation
d. Appreciate a high level of service

In order to avail this service you will have to fill in the Client Registration Form. You will also have to execute an Agreement and a Power of Attorney in favour of Systematix, establishing a Principal‐Agent relationship, which allows us to act on your behalf.

Documents Required: DEMAT & PMS Account opening form and the risk disclosure. Aadhar Card/Address proof/Identity proof /Pan card copy/Bank statements

Yes, the Minimum corpus requirement for investment purpose is 25 Lakhs

The Ideal investment time horizon under portfolio management services is at least 2-4 years.

Under the Portfolio Management Scheme, each transaction scheme will be considered as an independent trade and capital gains will be applied on each depending upon whether the relevant stock was held long term or short term

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.

However, we advise all our clients to consult their tax consultant before filing of their tax returns.