The discretionary portfolio manager individually and independently manages the funds of each client in accordance with the needs of the client in a manner which does not partake character of a Mutual Fund, whereas the non-discretionary portfolio manager manages the funds in accordance with the directions of the client.

At Arihant PMS Desk, we have a dedicated team of professionals for discretionary portfolio management services.

Investors who have a preliminary knowledge about the stock market but do not have the requisite time and discipline to keep themselves updated with the daily market movements Investors who want to generate a steady return of income by booking profits in the short -term and medium term rallies are aptly suited to apply in this scheme.

Yes, Portfolio Management Services completely supervised by the regulator of capital markets in India, SEBI.

Yes, as per the SEBI regulations, to invest in PMS you must have a minimum corpus of Rs. 5 lacs. However there is no upper limit on the amount you can invest.

No. There is no lock-in period in PMS schemes offered by Arihant. You can exit/redeem anytime.

Arihant PMS offers you equity expertise coupled with the flexibility to customize to your investment needs. We maintain a small corpus amount so that we can manage your funds properly unlike in a mutual fund, wherein the fund is very big. The following table succinctly outlines how our PMS offering differs from mutual fund:

Advantages of investing in PMS vis-à-vis a mutual fund:

• In a PMS, the portfolio is generally much smaller in assets and is much more concentrated with lesser number of stocks than equity mutual fund schemes.
• The biggest advantage of PMS is the way they are allowed to operate.
  
  
  1. Flexibility: Portfolio Manager has relatively greater flexibility to move in and out of cash depending on the market outlook. They are allowed to shift from being fully invested in equities to 100% cash at any time. This enables the portfolio manager to take tactical asset allocation calls and shift to cash if he is temporarily bearish on the market. This is one thing most mutual funds cannot do, since their schemes are such that they have to stay invested in equities up to a certain minimum limit (which can be as high as 90%) and cannot go below that, even if they are bearish on the market.
  2. Hedging: PMS are also allowed to hedge their exposure through derivatives, which helps them in protecting their portfolio from market volatility. Not all mutual funds use derivatives in their investment strategy.
• One of the greatest advantages of PMS is that portfolio managers of the PMS scheme are much more approachable to the clients. You can meet your portfolio manager, discuss with him his / her strategy and can get all your queries resolved. In fact most of the PMS Managers ensure that they personally stay in touch with the clients. However, this is not possible in mutual fund investment as there may be thousands of investors invested in a particular scheme and the fund manager may not get time to talk and discuss with all of them.

Thus, looking at these factors, PMS investment looks more favourable and ensures that your money is managed properly by experts.

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

You can open a PMS account by emailing or calling us at our exclusive PMS desk. Once we receive your request one of our executives will get in touch with you shortly. You can call us on: 022-42254842 or email us at pms@arihantcapital.com.

To qualify for an account you must:

• Be over 18 years
• Hold a Indian bank account
• Be an Indian national (NRIs can open an account)

We will also require the following:

Full name and postal address, telephone number, email address, date of birth, nationality, PAN card copy and requisite documents, i.e. Proof of Identity, Proof of address, proof of bank account and 2 photographs duly signed across.

If you are applying for an account in joint names, full information and documents will be required for both the parties.

You can open a PMS account with Arihant, if you are:

• An Individual
• A Hindu Undivided Families
• An Association of Persons
• A Limited Companies

An NRI, overseas company, firm, society or an overseas trust (subject to RBI approval)

Yes, you need to have PAN card as it is being made mandatory for all transactions in capital markets by SEBI.

The following documents are required to open an account with us along with the client registration form:

• PAN CARD (compulsory)
• Address proof (ration card / passport / driving license, electricity/telephone bill)
• Bank Statement
• Latest passport size photograph duly signed across
• Signature by all account holders on
• Registration forms
• PMS agreement
• Fee schedule
• Power of attorney

It does not cost you anything to open a PMS account.

Yes, as per the SEBI regulations, to invest in PMS you must have a minimum corpus of Rs. 5 lacs. However there is no upper limit on the amount you can invest.

Yes, you can open a PMS account with a combination of securities and cash. The initial portfolio of securities/ shares will be re-aligned as per the model portfolio.

The Portfolio Management Scheme is open for all Indian nationals, resident or otherwise. NRIs will have to open a PIS Account as required under RBI guidelines in order to invest in the PMS scheme.

See NRIs FAQs

Fee Structure*:

• Fixed Fee - 1.5% of NAV
• Brokerage - @ 0.25% of transaction value
• Performance Fee - 10% sharing in profit over and above minimum profit of 10% with higher watermarking

*Statutory charges, turnover charges, service tax, stamp duty etc are charged as applicable. The fee may vary/change.

The base asset management fee being charged is much lower than that charged by others, and that is to cover our running costs.

We have consciously kept our fee more performance linked, as we strongly believe that it will align the interests of the firm and the client. 

Your PMS account will activate only after you deposit a minimum of Rs 5 lacs in the account. To put in money, you can use one of the following ways:

• Cheque
  Please send a cheque payable to the Arihant Capital Markets Ltd Growth PMS a/c quoting the account holder’s name. Please send the cheque to:
  Portfolio Management Services
  Arihant Capital Markets Ltd
  67 Nehru Road
  3rd Floor Krishna Bhuvan
  Vile Parle (E)
  Mumbai - 57
• Bank Transfer
  

  If you have banking facilities you can transfer funds in Indian Rupees to your Arihant PMS account by online transfer or wire transfer. You will need to ask your bank to transfer the fund to:

  Account Name: Arihant Capital Markets Ltd Growth PMS
  Account Number: 043010200033673
  Bank Name: UTI Bank

  Important Notes:
  Please ensure that before you instruct your bank to transfer money, you intimate your relationship manager about the transfer the day before you initiate the transfer.

  A bank transfer will take approximately 3-4 working days for funds to clear in your PMS Account.

You can increase your investment amount in your existing Arihant PMS account by making additions in multiples of Rs. 50, 000.

For instance, upon opening of your account, you had initially invested Rs 8 lacs in Arihant PMS and now you wish to increase your investment size in it, the additional amount: (1) should be minimum of Rs 50,000; (2) should be in multiples or 50,000. So if you want to add Rs. 1,25,000 extra to your existing Rs. 8 lacs of investment in PMS, that will not be possible. You will have to either invest either additional Rs 1,00,000 lac or Rs 1,50,000.

We cannot accept third party payments. It is not authorised by Securities and Exchange board of India (SEBI).

You can use your current securities / shares to make investment in the Arihant PMS Account, but these will have to be liquidated and the sale amount should be minimum Rs 5,00,000.

Yes, you can withdraw your profit anytime you want, provided your portfolio does not fall below Rs 5 lacs limit, as per the SEBI requirement. As such, there is no lock-in period required in PMS Scheme.

Yes you can make part withdrawals from your portfolio for any unforeseen need provided your portfolio value does not fall below Rs 5 lacs as per SEBI requirement.

To liquidate your PMS account, you will need to fill a form and email or mail us the form. It takes 3-4 working days to liquidate your portfolio and carry out all the formalities.

Arihant PMS is an equity-oriented scheme. We invest in equity and equity related products under our PMS.

PMS Scheme is ideally suited for investors with a long-term perspective. Hence, a minimum time horizon of around 12-18 months is what we ask our investors to look for to get the desired returns.

If the portfolio manager thinks that a particular IPO presents a good investment opportunity then he/she will invest in the relevant IPO.

Under SEBI guidelines, a Portfolio Manager is permitted to invest in the derivatives including transactions for the purpose of hedging and portfolio rebalancing, through a recognized stock exchange. This has also been mentioned in the Disclosure Document and clients are advised to read it carefully before investing.

However, our policy will be to use Derivatives only as a hedging strategy and will be restricted only to those portfolios, which have a short-term outlook on the investment strategy.

SEBI guidelines forbid any day trading activity by Portfolio Managers. We strictly adhere to the government regulations whilst making investments. In addition, Arihant PMS focuses on making investments rather than indulging in intraday trading. Our investment philosophy is to buy good businesses for the long-term rather than buying just stocks.

Since we offer only discretionary portfolio management service, the discretion to invest primarily lies with the portfolio manager.  However at the time of giving us the portfolio you can give us list of securities, sectors which you do not/cannot invest in your portfolio due to reasons like conflict of interests, religious beliefs etc and we will take care of your need.

Equity markets can be highly volatile at times and rise and fall in the markets is inevitable. We ensure we regularly book profits when the share price of the company reflects the valuation and do not get carried away by the market sentiments. Our focus is always to invest in companies rather than shares, so we always select companies which are available at attractive valuation and have a sustainable business model.

However when we see any trend reversal in the markets, we increase the cash component of our portfolio and restrict our investments to companies / sectors which have low beta relative to the markets. This ensures that we have liquidity to buy shares when the markets fall and the companies are available at attractive valuations.

All investments are made in the name of the scheme.

As per SEBI rules, no portfolio manager can guarantee returns. Hence we are not permitted to guarantee any returns. However, before you invest through our PMS services, you can get an outlook on the marveling past performance of Arihant Growth PMS Scheme.

As per SEBI regulations governing Portfolio Management Services in India, neither capital nor returns can be guaranteed. We shall endeavor to outperform the benchmark indices like Nifty but there can be no guarantee or certainty of the same. We believe, over long term, equities' performance will track corporate performance. We expect India's GDP to grow at 8-9% p.a. in real terms or 13-14% p.a. in nominal terms. The industrial and services sector should grow at a faster pace. Therefore historical trends indicate that well managed portfolios in Indian equities can yield upto 20-25% p.a. returns. But this can also be lower than the expected as there are many other factors also that govern the markets and the performance.

As per the current Portfolio Management Scheme guidelines, portfolio manager cannot legally share losses. PMS schemes generally operate on a fee based model wherein other than a fixed fee, there is a share in profit above a certain specified rate of return but no share in losses.

Equity investments are subject to market risk which you need to be aware of as our PMS is an equity oriented scheme.

At Arihant PMS Desk, safety of funds and securities of our clients is our top-most priority. We open a distinct savings account and a depository account specifically for the purpose of PMS, to ensure that there is complete safety and confidentiality pertaining to your investments. We operate the accounts with a limited power of attorney that allows us to take care of the day to day functioning of your investments and save you from all the administrative hassles.

Investors can log on to the website of SEBI www.sebi.gov.in for information on SEBI rules, regulations and guidelines pertaining to portfolio managers. Addresses of the registered portfolio managers are also available on the website.

Arihant PMS operates under a pool scheme. In this all transactions in each individual stock are pooled together for execution and then allocated to individual clients at the end of the day on the weighted average cost (as allowed under SEBI guidelines). This ensures that all clients get the benefit of a uniform rate to avoid discrepancies in portfolio performance. Since individual contracts cannot be generated under the pool system, portfolio clients will not receive Contract Notes/ Bills.

You can send in your complaints to.
Investor’s Assistance Desk
Portfolio Management Service
Arihant Capital Markets Ltd
67 Nehru Road
3rd Floor Krishna Bhavan
Vile Parle (E)
Mumbai – 400057
(Contact person: Mr Rakesh Garg)

If your complaint is still not resolved you can approach SEBI for redressal of your complaints. You may send your complaints to:

Office of Investor Assistance and Education
Securities and Exchange Board of India
SEBI Bhavan, Plot No. C4-A, ‘G’ Block
Bandra-Kurla Complex, Bandra (E)
Mumbai - 400 051

Arihant PMS is a discretionary service wherein the portfolio manager manages your portfolio without having to bother you with the day to day decisions. The portfolio manager has unrestricted control over your portfolio and he/she takes all the investment decisions on your behalf.

However, we do a comprehensive reporting to maintain complete transparency in managing your portfolio. You will receive regular updates and a detailed report on your portfolio, allowing you to track its activity and performance.

You receive a detailed hard copy of the performance reports of your investment on a fortnightly basis giving details of portfolio performance. A soft copy is also emailed to you every week, so you know what is happening in your portfolio.

Under the PMS each transaction is considered as an independent trade and capital gains tax are applied on each transaction depending upon whether the relevant stock was held for the long term or short term. Presently 10% tax is chargeable for short term capital gains and no tax is chargeable on long term capital gains in India*. The STT charges will also apply.

We expect all clients to consult their tax consultant before investing into any form of securities. We provide each client an audited tax statement of his portfolio annually. This can be used for calculating your tax liability and henceforth filing returns.

It is the responsibility of the Client to deduct and pay T.D.S. to the Government Authorities.