Portfolio Management Services
- Q. What is a Portfolio Management Service (PMS)?
- A. Portfolio Management Service (PMS) is a service offered by a SEBI registered Portfolio Manager which professionally manages funds on behalf of its clients to enable its clients to achieve their investment goals.
- Q. Who is a Portfolio Manager?
- 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 funds of the client. Helios India Rising PMS is managed by Mumbai based Helios Capital Management (India) LLP (Helios India) which is licensed by SEBI to offer portfolio management services.
- Q. What is the difference between a Discretionary Portfolio Manager, a Non-Discretionary Portfolio Manager, and an Advisory Portfolio Manager?
- A. Discretionary Portfolio Manager independently manages the funds of each client in accordance with the needs of the client without any direction or guidance from the client. A Non-Discretionary Portfolio Manager manages the funds based on the directives of the client. An Advisory Portfolio Manager simply advises the client on investments as agreed upon.
At present Helios India offers Discretionary Portfolio Management Services under the scheme called Helios India Rising PMS.
- Q. Who is the typical PMS investor?
- A. The investment solutions provided by a PMS Portfolio Manager cater to a niche segment of clients, namely high net-worth individuals (HNIs) and non-individuals such as HUFs, partnerships firms, sole proprietorship firms and other permissible class of investors.
- Q. How is a PMS different from a Mutual Fund?
- A PMS scheme is an investment service which allows for greater flexibility and customisation to meet the investment goals of HNIs and permissible non-individuals. While mutual funds pool assets from several investors into a single large investment fund, in a PMS each account is managed separately and can be customized to suit a client’s investment mandate.
- Q. Are there risks associated with PMS investments?
A. Yes, PMS investments involve certain risks, such as the possible erosion of amount invested. In making an investment decision, investors must rely on their own examination of the fund and the terms of the offering.
Helios India Rising PMS
- Q. What is the investment strategy of Helios India Rising PMS?
- A. Helios India Rising PMS is a long-only, multi-cap Portfolio Management Service which endeavours to outperform its benchmark index, the Nifty500 Index, over a medium and long-term time horizon.
- Q. What is the investment philosophy behind Helios India Rising PMS ?
- A. The investment philosophy behind the Helios India Rising PMS has developed over the past 25+ years and on the back of 100+ years of experience of the investment team at Helios. To read more about our philosophy, please click the investment philosophy tab on our web site.
- Q. What is Helios India Rising PMS’ investment horizon?
- A. Helios India Rising PMS will invest in attractive opportunities with an initial time horizon of 1 to 3 years. The PMS may end up holding some stocks for a much longer period depending on how the investment thesis plays out.
- Q. Does Helios India Rising PMS guarantee any specific level of return?
- A. Helios India Rising PMS cannot guarantee any specific level of return or that the investment objectives will be met.
- Q. Is there any contract between clients and Helios India?
- A. Yes. Before taking up the management of funds or a portfolio of securities on behalf of the client, the Portfolio Manager enters into a written agreement with the client, clearly defining the inter se relationship and setting out their mutual rights, liabilities and obligations relating to the management of funds or the portfolio of securities.
- Q. What is the minimum investment a client can make in Helios India Rising PMS?
- A. As per the SEBI (Portfolio Manager) Regulations, 2020, the minimum ticket size applicable at the time of opening a new account is INR 50 Lacs.
- Q. Is there a redemption notice period and exit load?
- A. A client may at any time, at the client’s risk and cost, withdraw funds from the PMS scheme by giving a minimum of 30 (thirty) days advance notice in writing to the Portfolio Manager. The client may have to pay an exit load or termination fee as stipulated in the agreement.
- Q. Are investors required to open new demat accounts for PMS investments?
- A. Yes. As per the regulatory requirements, an investor in a PMS scheme is required to open a new demat account.
- Q. Can clients hold their demat accounts jointly with other applicants?
- A. Yes, clients can hold a demat account jointly with another applicant. The number of applicants in a joint application shall not exceed 2 (two). The KYC requirements shall also be applicable for all joint holders.
- Q. What is the procedure to change a nominee for a PMS account?
- A. A “change of nominee” form must be filled to change the name of the nominee for the PMS account. The client should reach out to their relationship manager or email Helios India at email@example.com to update the nominee details.
- Q. How can the client access their PMS account statement?
- A. The Portfolio Manager shall furnish a statement of account to the client every 3 (three) months (and as and when required by the client) in accordance with the SEBI Regulations.
- Q. What is a PMS Disclosure Document?
- A. The Disclosure Document provides essential information about the portfolio services in a manner that will enable the investors in making informed decisions for engaging Helios Capital Management (India) LLP as a Portfolio Manager. The document contains the amount and manner of payment of fees payable by the client, the portfolio risks, the complete disclosures with respect to transactions with related parties, the performance of the portfolio manager and the audited financial statements of the portfolio manager for the immediately preceding three years.
- Q. Can a Non-Resident Indians (NRI) invest in Helios India Rising PMS?
- A. Yes, NRIs can invest in the Helios India Rising PMS via an NRI PMS Account.
Fees, commissions and taxes
- Q. What is the fee structure for clients of Helios India Rising PMS?
- A. Clients can avail of a fixed fee structure or a hybrid / performance linked fee structure with a hurdle rate and charged beyond high watermark.
This fee does not include operational expenses like custodian expenses, fund accounting fee, audit fee, brokerage on transactions, etc., which may be charged on actuals.
- Q. What is a ‘Hurdle rate’?
- A. A hurdle rate is the minimum agreed upon return the Portfolio Manager must generate for the client before it can charge an incentive fee.
- Q. What is a ‘High Watermark’?
- A ‘High Watermark’ is the higher of either the ‘corpus investment value’ or ‘highest NAV at which fees has been paid historically’.
- Q. What are the setup fees, entry load and lock-in applicable for a PMS account with Helios India?
- Helios India Rising PMS does not charge an entry load or a setup fee. Further, as per the SEBI (Portfolio Manager) Regulations, 2020 there are no lock-ins periods.
- Q. What are the charges, aside from PMS fees, that will be levied on the PMS account with Helios India?
- A. Aside from agreed upon PMS fees, clients may be charged for brokerage on transactions done on behalf of the client along with taxes incurred on transactions, custodian and fund account charges, audit fees, applicable taxes and one-time stamp paper and notary charges incurred during account opening.
- Q. What is tax liability for PMS clients?
- A. The tax liability of a PMS investor would remain the same as if the investor is accessing the capital market directly. However, the investor at their own cost and consequences should consult a tax advisor for the same.