Portfolio Management Service (PMS) offers customised investment portfolio management by experienced professionals to help investors achieve their financial goals. PMS providers can invest client funds across various assets such as stocks, mutual funds, bonds etc. based on predefined investment mandates.
- Higher agility and flexiblity due to smaller fund size
- Customisation of portfolio to mitigate timing risk
- Owner-operators ensure skin in the game
- No closet indexing
- Investment in securities beyond usual discovered names
- Fees typically linked to performance
Securities and Exchange Board of India (SEBI) mandates a minimum investment of ₹50 lakhs for registering with a Portfolio Management Service. East Green also has the same minimum investment requirement.
- We offer both online and offline (paper-based) on-boarding options
- Once you get in touch with us, we help you with the account opening formalities
- Portfolio will be created and managed as per the agreed investment strategy
Investors can redeem partial (subject to minimum account size of ₹50 lakhs) or full investment amount anytime after giving due notice to the portfolio manager. However, there will be an exit load of 1% if capital is withdrawn in the first 12 months of investment. Investments are held in assets with sufficient liquidity.
Redemption requests are processed within 10 working days. The money gets credited directly to your linked bank account via electronic transfer.
We have multiple fee structures with a combination of fixed and performance fees:
- Fixed fees – Charged as percentage of assets under management
- Performance fees – Charged as a % on returns above a hurdle rate
- Other minor charges include custodian, brokerage, fund accounting charges, etc.
East Green offers only discretionary PMS, where investment decisions are taken by the fund manager. The investor is not involved in day to day decision making.
We use a combination of qualitative and quantitative factors to select stocks that can generate market-beating returns over the long run. We focus on growth and modify the portfolio with agility, with risk management at the heart of the process. More information here.
Investments are monitored regularly and portfolio strategies adapted as part of our risk management framework. However, the securities we invest in are exposed to market risk.
East Green invests in equities, and may sometimes hold cash/fixed income instruments. We are market capitalisation agnostic, but only invest in stocks with sufficient liquidity.
Yes, NRIs can invest with us by providing required KYC documents and operating either NRE or NRO account. Individual documentation may differ depending on regulatory requirments.
We provide periodical reports and portfolio updates to investors, and also offer a web based dashboard to clients to login and see their holdings.
Risk management is integral to our portfolio construction process. We diversify across stocks and sectors to mitigate concentration risk. Strict position limits are in place. We track portfolio volatility and ensure adequate liquidity at all times. Stocks with weak financials or corporate governance issues are avoided.
We facilitate opening of new demat accounts for PMS clients in partnership with our custodian, Orbis Financial. This account is mapped to the PMS for seamless operations and reporting.
Additional funds can be added anytime to your PMS account via cheque or bank transfer. There is no minimum amount. The funds get deployed based on the portfolio strategy.
As a SEBI regulated Portfolio Manager, the securities of East Green’s clients are held by an independent custodian (in the names of respective clients) and remain secure.
Unfortunately, we do not offer advisory or non-discretionary services at present. Our services require opening a new PMS account and investing the minimum corpus as per regulations.
The profits generated from the PMS portfolio are subject to capital gains tax as per income tax regulations. For investments held for less than 12 months, short-term capital gains tax will be applicable (plus applicable surcharge and cess) on profits booked. For investments held for more than 12 months, long-term capital gains tax will be applicable (plus applicable surcharge and cess) on profits above Rs 1.25 lakh in a financial year. Long-term capital gains below ₹1.25 lakh in a financial year are exempt from taxes.
Capital gains statement is available for download. Do consult your tax advisor on how PMS returns should be reflected in your tax returns.
When an individual investor opens a new trading account, the broker typically opens a 2 in 1 account (trading + demat). The demat + trading account is held with the broker in the name of the investor. Trades are placed with the broker and stocks are settled in the linked demat account.
In a PMS, the broker only executes the trades. It does not open a demat account with itself. When a new PMS client is on-boarded, an entity called the custodian opens a demat account with a depository. In East Green PMS, trading of all clients happens at a pool level. At the end of day, the custodian allocates settled securities to each client and credits their respective demat accounts.
Our custodian provides an online portal where investors can view their portfolio holdings, transactions, performance, taxation details, and other important information.
A nominal onboarding expense (upto ₹ 3000 for individual residents and ₹ 5000 for others) is deducted to cover for courier/paperwork/setup depending on the mode of onboarding (online/offline) and type of client (Resident Indian/NRI/Corporate etc).
There are no upfront fees.
Fixed fees (if any) are deducted monthly. Performance fees (if any) are deducted at the end of the financial year. Fees are deducted from the cash balance of the particular client and there are no external transfers involved.
No one can predict the short-term direction of the market with certainty. If markets are going up/down, they can continue to keep doing so. What a fund manager can ensure is that every investor’s portfolio risk remains the same irrespective of their time of investing. This removes the timing risk for any capital addition. For more details, visit – https://eastgreen.in/how-to-account-for-market-timing-risk/
Write to us – contact@eastgreen.in