Ketan Das asked on 30/03/2020

How to invest in Portfolio investment services in India?

291 views
Avatar
SBNRI Team
answered on 30/03/2020

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.

 

Invest in Portfolio Management Services: An Overview

 

Specification

PMS
Objective

Professional Services offered to meet investor specific investment objectives

Ownership

Investors
Minimum Investment

50 Lakhs

Customization

Possible
Portfolio Construction

15-25 stocks

Portfolio Stock Weightage

Flexible
Reach

Limited no. of Investors

Charges

2.50%*

 

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. 

 

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.

 

For more queries like “Invest in Portfolio Management Services”, click here.

 

 

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

 

Ask SBNRI Investment Expert Now

 

Copy link