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Very few investors have the experience, time and access to information needed to successfully manage their investments Under the Portfolio Management Services, PMS inter-alia offers Discretionary Services. These services are offered to each client under a specific agreement entered into between the Portfolio Manager and the client on an exclusive basis.

PMS has a strong investment team. The team has more than 100 man-years (both PMSand Mutual Fund) of experience in the area of investment management and research.The Portfolio Management Services (PMS) activity is carried out separately from the mutual fundactivity. AMC is handling PMS activity since January 1, 2001.

The investment philosophy is quite simple, yet very powerful – our aim is to build the wealth of our clients by investing in high quality companies at reasonable prices. We believe that long-term wealth generation is possible when the following conditions are satisfied:
1. Investing in companies that have a strong competitive advantage over their peers;
2. Investing when the prices are attractive.
Our stress is on the analysis of individual companies, and not so much on predicting the movement of the stock market indices. The focus is on companies that qualify under the following criteria.

       > Proven track record
       > Competent and honest management
       > Strong presence in its own industry (preferably No.1 or No.2)
       > Strong efficiency indicators such as higher sales / capital, improving ROCE
       > Free cash flow generation
       > The proven ability of management to successfully introduce new products
       > A strong balance sheet
       > A significant competitive advantage that would make it difficult for its peers to dislodge the company
       > Good prospects over the next few years
       > Price that affords a reasonable margin of safety

Stock markets can be volatile in the short run. In the short run, the price movements are governed by thousands of variables over which we have little control. In the long run however, the stock prices tend to reflect the inherent fundamentals of the company and roughly reflect the growth in profits and cash generation capabilities of the company. We therefore do not attempt to forecast the movement of the stock market indices; instead we focus on identifying strong investment candidates. In sum, we attempt to buy high quality companies at reasonable prices, and reasonably attractive companies at below-average prices.

Yes! As the client, the choice is yours. Your broker will be there to buy those investment to buy and sell on your own as your account with PMS is not an account for this purpose. Our sole focus is on portfolio management and to ensure we are successful at this task we must ensure that all our resources are directed solely towards research and execution of our best ideas and that nothing distracts from this goal.

Your account will be held in your name with a custodian. Our custodian is PMS.

A custodian is an entity (registered with SEBI) that holds your securities which are being managed by PMS. PMS provides the safekeeping of securities and provides services incidental thereto associated with your account so that we can focus on managing the investments within your portfolio.

Yes. Non Resident Indians can invest in PMS by opening a PIS (Portfolio Investment Scheme) account.

PMS provides an online viewing service and you will be able to access your portfolio and its performance, transaction statement, capital gains statement etc.

There are two prominent income streams associated with Equity PMS, the dividend income and profit on sale or transfer of shares.

Tax implication for Dividend Income:
- Dividend received by shareholders is exempt from tax –section 10(34) of IT Act
- However, Company distributing dividends is liable to pay dividend distribution tax @ 16.995%

Tax implication for Profit from sale/transfer of shares
- If considered as capital gains (capital gains = sale consideration –cost of acquisition – expenses incurred in connection with such transfer) Long Term Capital Gains Short Term Capital Gains Capital Gains Period of Holding Rate Period of Holding Rate Listed Shares (where STT is paid) More than 1 year Exempt u/s10 (38) 1 Year or less 16.995%

If considered as business income/other income –net income taxable @ 33.99% Notes

1.Tax rates include surcharge @10%, Education Cess @2% & secondary and higher education cess@1% of the tax amount
2.It is assumed that income would be taxable in the hands of investors at the maximum rate.
You are also advised to consult your tax advisor for further details on taxation.

Minimum investment amount is Rs. 50 lacs and in multiples of Rs. 1 lac thereafter.

Fee Structure is between 2.00% to 2.50% p.a.* of daily average assets under management OR 1.75% p.a. * of daily average assets under management plus 20% of gains in excess of 10% per annum *Plus Applicable Service Tax For further details on fee structure, please read the disclosure document.

Our Investment Management Agreement with clients provides for termination. Exit charges as applicable may apply.

There is no entry fee. An exit fee is applicable as mentioned below:
Exit Fees:
- Upto 12 months – 3%
- More than 12 months and upto 24 months – 2%
- More than 24 months – Nil

You simply review and sign a few documents. Details of the same are mentioned below:

1. PMS Client Registration Form
2. Discretionary Portfolio Management Service Agreement (read disclosure document prior to signing the agreement)
3. Power of Attorney by client to AMC. This document needs to be notarized locally. Documentation with PMS:-
- Bank Account Opening Form
- Depository Account Opening Form

In the entire set of documentation you will require in all 3 signed across photographs and 4 selfcertified copies each of Proof of Identity, Proof of Address, PAN Card. Please refer client documentation for details.