Following are the eligible investors for PMS:

• Resident Individuals
• Non Resident Indian
• Partnership Firms
• Hindu Undivided Families
• Body corporate
• Trust

Portfolio Management Services can be broadly classified into 2 parts:

• Discretionary PMS – Where the investment is at discretion of the fund manager & client has no intervention in the investment process.
• Non-Discretionary PMS – Under this service, the portfolio manager only suggests the investment ideas. The choice as well as the timings of the investment decisions rest solely with the investor. However the execution of the trade is done by the portfolio manager.

Following are the reasons why one can sign up for a PMS

• Exclusive and personalized solution
• Dedicated wealth manager
• Option of stock selection (In case of Non-Discretionary)
• Customized solution to achieve specific investment objectives and needs of the investor
• Keep up with your portfolio, discuss ideas with fund management team

Since the stocks bought under PMS are in the name of the individual investor, the tax treatment is similar like direct equity investing.

For signing up the PMS an investor will have to fill in the Client Registration Form. Also, she will have to execute an agreement and a power of attorney in favor of KSBL. This will formalize a principal‐agent relationship, allowing us to act on behalf of investor.

Typically, there is no lock-in period for portfolio management services, though for optimum results, one should wait for 15 months