Portfolio Management Services (PMS)


What Is Portfolio Management Service?

Portfolio Management Service (PMS), is a service offered by the portfolio manager in which an investment portfolio of predominantly stocks and other stock-related instruments is created to achieve specific investment goals. Portfolio Management Service is handled and managed by a professional money manager who creates and customizes the portfolio based on the underlying objective of the PMS.

Investing In Portfolio Management Service:

Portfolio Management Service or PMS can focus more on performance by making investment decisions in a way in which the absolute returns are maximized. Here are a few benefits of investing in PMS

Pre-requisites For PMS:

Sr. No.Type of IncomeTaxation
01Sale of Listed Shares – STT paid at the time of purchase and sale (except for shares purchased before STT came in force). Period of holding less than 1 year – Short Term Capital Gain. Capital gain @ 15%. (U/s. 112A)
Period of holding more than 1 year – Long Term Capital Gain. Capital gain @ 10%. Exempted up to Rs. 1,00,000. (U/s. 112A)