Portfolio Management Services-FAQs

Portfolio Management Services is a professional service that’s offered by stock brokers like Libord. Here’s the meaning of Portfolio Management Services. It is a management service offered by a stock broker, where experienced fund managers and stock market professionals are assigned to you to monitor your investment portfolio and make the necessary changes required to ensure that your investments provide you with the expected returns.

PMS helps maximize returns and minimize risk. Now that you know the meaning of PMS, there are two different types that are typically offered by Libord – discretionary PMS and non-discretionary PMS.

A portfolio manager is a body corporate, which, pursuant to a contract with a client, advises or directs or undertakes on behalf of the client (whether as a discretionary portfolio manager or otherwise) the management or administration of a portfolio of securities or goods or funds of the client.

The services of a Portfolio Manager are governed by the agreement between the portfolio manager and the investor. The agreement should cover the minimum details as specified in the SEBI Portfolio Manager Regulations. However, additional requirements can be specified by the Portfolio Manager in the agreement with the client. Hence, an investor is advised to read the agreement carefully before signing it.

The client may withdraw partial amounts from his portfolio, in accordance with the terms of the agreement between the client and the Portfolio Manager. However, the value of investment in the portfolio after such withdrawal shall not be less than the applicable minimum investment amount.

All clients have an option to invest in the Libord PMS investment approaches directly, without intermediation of persons engaged in distribution services. You can open a PMS account by emailing us. Once we receive your request one of our executives will get in touch with you shortly. You can email us at: inquiry@libord.com

The profits that you gain from using Portfolio Management Services are assumed to be capital gains. And so, the tax treatment of portfolio management schemes will be in line with the taxation rules for capital gains, which is 15% for short-term capital gains and 10% for long-term capital gains.

No. Neither a PMS or a portfolio manager can impose any lock-in on a PMS investor. Instead, they can charge an exit fee in the event of an early exit.

No, SEBI in its PMS Regulations (Portfolio Managers),2020 clause 22 (11) prohibits the portfolio manager from guaranteeing or indicating a return, either directly or obliquely It has to be distinctly understood that investing in equities is subject to market and other risks as disclosed in the Disclosure document and there exists a risk to the principal amount invested.

In our PMS, we understand that you have given us your hard earned money and therefore we ensure that we answer every query. You can anytime request for an appointment/call and we will arrange a meeting/call with the fund management team for discussion about portfolio spread and returns or any other query you may have regarding your portfolio.

Yes, you can withdraw your profit anytime you want, provided your portfolio‘s value does not fall below the prescribed limit as per SEBI regulations.

No. Holders cannot be added or deleted in a PMS account once the PMS Portfolio is activated.

SEBI (Portfolio Managers) Regulations, 2020 provide that the Portfolio Manager shall charge a fee as per the agreement with the client for rendering portfolio management services. The fee so charged may be a fixed amount or a performance-based fee or a combination of both. However, no upfront fees shall be charged by the Portfolio Manager directly or indirectly to the clients. The agreement between the Portfolio Manager and the client shall, inter-alia, also include the quantum and the manner of fees payable by the client for each activity for which service is rendered by the Portfolio Manager directly or indirectly.

  • The following investors are eligible to invest through PMS: Resident Individuals
  • Hindu Undivided Families (HUF)
  • Body Corporates (Private / Public)
  • Registered Trusts
  • Non-Resident Indians (NRI)*
  • Partnership Firms or any other eligible investor

Yes. Changing/Updating the contact details/Address in the PMS account requires the client to fill up and sign Modification form. The client can reach out to his / her relationship manager to get this done. Client can also mark us mail at inquiry@libord.com

In discretionary portfolio management services, the professional in-charge of an investment portfolio manages the funds and securities independently without the involvement of the client. In a non-discretionary portfolio management service, the professional in-charge of an investment portfolio manages the funds and securities according to the client’s directions and input.

Yes, NRIs can invest in the PMS through the NRE or NRO accounts. There are some additional compliance/documentation requirements for NRI clients. Our officer will help the NRI client with this documentation.