Can NRI invest in PMS? Before understanding that, let us first learn about what is PMS or Portfolio Management Services (PMS)

Portfolio Management Services (PMS) can be understood as the management of funds of HNIs (High Net-Worth Individuals: A wealthy person, in particular one with investable assets in excess of $1 million) by various wealth management companies or Portfolio Managers (people responsible for handling your account) who invest these funds into a varied range of stocks, fixed incomes, debt, cash and other individual securities. These investments are aimed at meeting specific objectives and the minimum investment amount for PMS is Rs.50 Lakhs. The portfolio consists of a lesser number of stock holdings that are bought on the philosophy of “Buy and Hold”. PMS offers a structured way of investing money and is a very effective medium for higher returns.

Can NRI invest in PMS?

Non-resident Indians or NRIs can invest in the PMS scheme by opening a Portfolio Investment Scheme (PIS)* Account as required under the RBI guidelines.

You either need to visit the designated bank branch in India or send the required documents to that branch in India or to third party providers like Zerodha via courier in order to open the PIS Account.

You need the following 3 accounts to invest in PMS:

• A PIS Bank Account (a normal bank account where your money resides), 
• A Trading Account (a share broker account which allows you to trade in equity, F&O etc. segments) and, 
• A Demat account (it holds the equity shares purchased by you)

Note: The rights to all these accounts will be with the Portfolio Manager (person responsible for handling your account)

The documents required for a PIS account for NRIs are:

• Copy of valid passport (pages with your name, address, date of birth, date and place of issue, expiry date, photograph, address, signature)
• Proof of NRI status (by way of valid Employment/Residence Visa copy or Work/Residence Permit)
• Copy of Indian PAN card
• Proof of Overseas and Indian Address
• Recent passport size colour photograph

*Portfolio Investment Scheme (PIS): Through this scheme of the Reserve Bank of India, NRIs can purchase and sell shares and debentures of Indian companies on a recognized stock exchange.

What are the charges of PMS?

Every Portfolio Management Service Scheme has certain Fund Management charges that may vary up to 2.50%* of the investment amount depending upon the PMS provider chosen for investments.

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