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.

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Benefits of investing in PMS

Portfolio Management Services (PMS) has various benefits. The prominent benefits of investing in PMS are:

• Quality Portfolio: The basic knowledge of investment is essential when it comes to stocks. The major share of the market is held by companies that appear lucrative but tends to become long-term investments with low returns. A quality portfolio helps investors by selecting quality companies for investment and let’s you “Buy and Hold”. 
• Independent Portfolio: The investments made through PMS are not dependent on the behavior of other investors. PMS has isolated individual holdings so one investor’s behavior doesn’t impact other investors investments. The best part about investing in PMS is that the stocks are bought in your name making you the owner which is not the case in investments such as mutual funds.
• Online Top Up: You can always add more funds to your investments and that too online. For example if you have a portfolio of 1 crore, you can add another 50 lakhs to it using the online services, through your NRE/NRO bank accounts.
• Transparency and Superior Returns: Investing in a Portfolio Management Service has high chances of superior returns as the funds are structurally invested into opportunities with a high yield capacity. Also, the Portfolio Manager (people responsible for handling your account)  makes sure that transparency is maintained between the investor and the investments. No investments or sell outs are carried out without informing the investor about the same.
• Transparent Charge Structure: Unlike Mutual Funds, charges are transparent in PMS. The deductions and other charges are clearly mentioned in the statements provided to the investor.

Also read: PMS for NRI: A Comprehensive Overview

Can NRIs from USA invest in PMS in India?

Yes. NRIs from the USA can invest in PMS (Portfolio Management Services) in India. They 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)

Here is a list of the Best PMS providers for NRIs in India:

• IIFL Investment Managers
• ASK Investment Managers
• Alchemy Investment Managers
• Motilal Oswal Investment Managers

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 which can be done through various distributors such as banks and other financial advisors or third party providers like Zerodha. 

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.

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.

To get expert advisory on Investment in PMS at SBNRI, contact us using the button below.

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