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Portfolio Management Services (PMS)

Discretionary PMS vs Non-discretionary PMS vs Advisory PMS?

Discretionary portfolio manager will have the complete control on decision making and execution, client will not have any say in these investment decisions and execution. Non Discretionary means that decision will be made by the fund manager in accordance with the client but all execution will happen post receiving confirmation of the client. Advisory PMS means that the fund manager will only provide advisory and the client can decide whether to execute or not.

Long-Term Capital Gains – Applies if you’ve held stocks for more than 24 months before selling them for gains, then you will be liable to pay capital gains tax rate of 20% plus applicable fees & surcharges.

About PMS - Marcellus Investment Managers Pvt Ltd

Specialized Investment Fund (SIF)​

Now, mutual fund investors can access highly sophisticated investment strategies previously available only to HNIs.

It could be perfect for investors looking for high-risk, high-return opportunities.

Here are 3 key things you should know about it.

1 Sophisticated & Flexible Investing Strategies​

Fund houses that offer mutual fund schemes can now launch SIFs. How will they be different from mutual fund schemes?

SIFs offer fund managers much more flexibility compared to mutual funds.

While mutual funds are categorized by the type of stocks they invest in (like large-cap or mid-cap), SIFs are all about the strategy. Fund managers can use strategies like long-short, typically used by hedge funds.

This means fund managers can bet on both winners and losers.

For example, if they believe pharma stocks will rise, they will “go long” by buying them.

On the other hand, if they think railway stocks will drop, they will “short” them—essentially betting on their decline.

This way, the fund can potentially earn returns whether the market is climbing or falling.

However, the entry ticket size in SIF is also higher. The minimum investment in any SIF will be ₹10 lakh, so you can’t start with just ₹500 like in mutual funds.

2 Smartly Diversified​

SIFs give fund managers more flexibility than mutual funds, but SEBI is making sure that diversification is maintained.

For instance, no scheme can allocate more than 10% of its corpus to a single company. There are also limits on how much can be invested in other assets like REITs, InvITs, and bonds.

3 Investor-Friendly Fees​

Unlike PMS and AIFs, which have high fees, SIFs will have a much more investor-friendly expense ratio, similar to mutual funds. Taxation rules could also be similar.