A portfolio manager is a body corporate, which, pursuant to a contract with a client, advises or directs or undertakes on behalf of the client (whether as a discretionary portfolio manager or otherwise) the management or administration of a portfolio of securities or goods or funds of the client.

Portfolio Management Services (PMS) is a service offered by the Portfolio Manager for professional management of investment portfolio to create wealth by investing in stocks, fixed income, debt, cash, structured products and other individual securities and/or to cater the investment needs by providing personalized investment solutions to meet specific investment objectives by a professional investment/portfolio manager.

There are three types of PMS:

  • Discretionary PMS - The portfolio manager individually and independently manages the funds and securities of each client in accordance with the needs of the client. The choice as well as the timings of the investment decisions rest solely with the portfolio manager.
  • Non-Discretionary PMS- The portfolio manager manages the funds in accordance with the directions of the client. The choice as well as the timings of the investment decisions rest solely with the Investor. The portfolio manager only suggests the investment ideas. However, the execution of trade is done by the portfolio manager.
  • Advisory Services – It involves advising the client on managing the portfolio/investments. The portfolio manager plays the role of an advisor only, the management of the portfolio/investments and execution of trade is done from the client’s end.

Mutual Fund is an investment trust for investors with a common investment objective and invests funds in securities, which complement that objective. The rewards/risks are proportionately shared by all the investors in the Mutual Fund. PMS, on the other hand, is a personalized investment service provider that takes into account unique needs of investors. It is not possible to service all investors through a mutual fund due to the uniqueness/diversity of investment objectives. Thus, a PMS seeks to address investors’ requirements through an individual investment goal assessment exercise and portfolio building. The rewards/risks from the portfolio are borne solely by the investor for whom the portfolio is being managed.

An investor in a PMS can expect better handholding from his/her/its portfolio manager than he has been accustomed to in investing either on his/her/its own or from through his/her/its broker or in a mutual fund. A PMS investor can also expect to occasionally interact with the portfolio manager to discuss any concerns that he might have. The Portfolio Manager will handle all administrative matters, including operating a bank account and dealing with settlement and depository transactions.

Yes. Magadh Capital Advisors LLP (MCA LLP) is registered with Securities and Exchange Board of India (SEBI) as a Portfolio Manager vide registration no. INP000007155 under SEBI Portfolio Manager Regulations, 2020. Currently MCA LLP offers 1) Discretionary portfolio management services and 2) Advisory Services.

The following can invest in the PMS:

  • Resident Individuals
  • Hindu Undivided Families (HUF)
  • Body corporate (Private/Public)
  • Trust (Registered)
  • Limited Liability Partnership (LLP)
  • Partnership Firms
  • Non Resident Indian (NRI)( post RBI approval)
  • Any other eligible investor

Yes, NRIs can invest in the PMS through the NRE or NRO accounts. There are some additional compliance/documentation requirements for NRIs which need to be taken into consideration. For proper guidance, contact us our representative will help NRI investors with the process/documentation.

MCA LLP PMS is ideally suited for HNIs (High Networth Individuals), family offices or corporates having unique investment objectives and who are concerned primarily with their investment growth but with an intense focus on capital preservation.

You can drop an email on: investor.info@magadhcapital.com about your requirement and share your contact details. Our representative will get in touch with you to help with the onboarding process/documentation.

Yes. Investor have the option for direct on-boarding without intermediation of any person engaged in distribution services to avail services of Magadh Capital Advisors LLP by dropping an email oninvestor.info@magadhcapital.com

YThe following investment approaches are offered by MCA LLP:

A) VALUE FOR GROWTH: A multi-cap, sector agnostic investment approach with Nifty 500 as the benchmark.
B) FUTURE STARS: A small-cap and mid-cap, sector agnostic investment approach with Nifty mid-cap 100 index as the benchmark

The minimum amount applicable at the time of opening a new account with MCA LLP for PMS is the same as regulatory minimum requirement i.e. amount of Rs. 50 lakhs or securities having a minimum worth of Rs. 50 lakhs. Please note, in case of securities, we will re‐align the securities, if required.

Yes, you can open a PMS account with a combination of securities and cash as long as they add upto a minimum of Rs 50 lakhs. However, we will re‐align the securities, if required.

Resident Investors with Pooled Bank Account can remit funds online via netbanking/NEFT/RTGS into our account or can sent us account payee cheque drawn on the name of MAGADH CAPITAL ADVISORS LLP.
Non-Resident, clients with separate account and clients for remitting funds online via netbanking / NEFT / RTGS must drop an email to investor.info@magadhcapital.com for account details.

After the demat account opening process has been completed with MCA LLP, the client will be provided a copy of the Client Master List (CML) of the new demat account. The client will then have to produce this CML copy and fill up the depository slips at the entity where the client has his/her/its old demat account.

Yes. An existing client of MCA LLP having minimum AUM of Rs. 50 Lakhs in existing account can top up his/her/its existing portfolio with a minimum amount of Rs. 1 Lakh in the increment of Rs. 50,000/- whether monthly or a quarterly.

Yes, you need to have PAN card as per regulations, it is mandatory for all transactions in capital markets. In case you do not have a PAN card, we can help you in acquiring one.

Yes. For investment in listed securities, an investor is required to open a new demat account in his/her/its own name. MCA LLP will help you to open a new demat account.

In Case of Resident Indians during their account opening documentation process, IPV will be carried out by employees of Kotak Mahindra Bank at a time and place convenient for the client.

In Case of Non-Resident Indians who are visiting India during their account opening documentation process, IPV will be carried out by employees of Kotak Mahindra Bank at a time and place convenient for the client. However, considering the infeasibility of carrying out IPV of NRIs not visiting India, attestation of KYC documents by Notary public, any court, magistrate, Judge or local banker of the client where client is residing, may be permitted. However, for NRIs who are either US persons or Canadian persons, IPV has to be done only when they are visiting India.

It generally takes 7-10 working days from receipt and verification of Account Opening Form kit, which is complete in all respects.

Under discretionary portfolio management services, the investor can mention specific needs (like sector/company restrictions) which the investment manager may, but not necessarily, keep in mind while investing your funds. However, the sole authority of investment decisions will be with the investment / portfolio manager.

You are required to sign a PMS Agreement and also give us a Power of Attorney to handle all the operations related to the management of your portfolio.

Under MCA LLP PMS, your portfolio is managed by a team of experienced Portfolio Managers with more than 17 years of experience in the industry and capital market to manage the funds backed with a strong team of research analysts. These specialists create and actively manage your portfolio to strive to provide you risk adjusted returns in line with your stated investment objectives.

Under Discretionary Portfolio Management Service (DPMS), Portfolio Managers shall invest funds of his/her/its clients in the securities listed or traded on a recognized stock exchange, money market instruments, units of Mutual Funds through direct plan and other securities as specified by SEBI from time to time.

Our PMS is an equity‐oriented service. We invest in equity and equity related products under our PMS. However there will be occasions when we may deploy some part of funds in debt securities, or debt mutual funds etc depending on our market call.

Yes. You can switch between the investment approaches after following the proper procedure.

Yes. You can switch between the investment approaches after following the proper procedure.

You can invest in both the investment approach of MCA LLP by executing the client agreement and the respective annexures as may be required and subject to minimum investment of Rs. 50 lakhs in each investment approach.

The client may withdraw partial amounts from his/her/its portfolio, in accordance with the terms of the agreement between the client and the Portfolio Manager. However, the value of investment in the portfolio after such withdrawal shall not be less than the applicable minimum investment amount i.e. Rs. 50 lakhs/-

A client may at any time, at its own risk and cost, withdraw its asset from MCA LLP PMS by giving not less than 30 days’ written notice for the same.

Early withdrawal of funds from the investment approach is subject to exit load, as mentioned in the client agreement. No penalty will be levied for the same.

The portfolio manager provides to the client the Disclosure Document at least two days prior to entering into an agreement with the client. The Disclosure Document contains the quantum and manner of payment of fees payable by the client for each activity, portfolio risks, complete disclosures in respect of transactions with related parties, the performance of the portfolio manager and the audited financial statements of the portfolio manager for the immediately preceding three years. Notably, disclosure document is also available on our website (www.magadhcapital.com).

No. SEBI does not approve any of the services offered by the Portfolio Manager. An investor has to invest in the services based on the terms and conditions laid out in the disclosure document and the agreement between the portfolio manager and the investor.

No. While the portfolio manager submits the disclosure document to SEBI prior to its general circulation, SEBI does not approve or certify the accuracy or adequacy of the contents of the Disclosure Document.

The services of a Portfolio Manager are governed by the agreement between the portfolio manager and the investor. Hence, an investor is advised to read the agreement carefully before signing it.

Portfolio managers cannot impose a lock-in on the investment of their clients. However, a portfolio manager can charge exit fees from the client for early exit as applicable and as laid down in the agreement subject to provision of SEBI Circular No. SEBI/HO/IMD/DF1/CIR/P/2020/26.

As per SEBI rules, no portfolio manager can guarantee returns. Hence we are not permitted to guarantee any returns.

Kotak Mahindra Bank Limited has been appointed as the custodian and fund accountant for MCA LLP’s PMS.

SEBI guidelines forbid any day trading activity by Portfolio Managers.

Yes. Dividends against securities are credited directly into the client’s PMS account and hence get reinvested into the PMS account.

SEBI (Portfolio Managers) Regulations, 2020 provide that the portfolio manager shall charge a fee as per the agreement with the client for rendering portfolio management services. The fee so charged may be a fixed amount or a performance-based fee or a combination of both.

The agreement between the portfolio manager and the client shall, inter-alia, includes the quantum and the manner of fees payable by the client for each activity for which service is rendered by the portfolio manager directly or indirectly. Hence, an investor is advised to read the agreement carefully before signing it.

Fees schedule can only be changed on a prospective basis, from the 1st April of a new financial year. Changes to the fees structure are not allowed on retrospective effect.

All resident Indian clients become beneficiary owners in the pooled bank in proportion to the value of funds transferred by them into this account. MCA LLP Investment Managers is NOT one of the beneficiary owner of this account. As a result, the pooled bank account will not get affected even in the unlikely event of all bank accounts of MCA LLP Investment Managers getting locked / sealed by the regulatory bodies. Use of pooled bank account is a structure provided by SEBI to help ease operations and reduce operational costs related to execution of PMS accounts.

NRI discretionary PMS accounts include a PIS bank account (in the name of the client), a non-PIS bank account (in the name of the client), a trading account (in the name of the client) and a demat account (in the name of the client).
However, for resident Indian discretionary PMS accounts, corporate accounts and HUF accounts, the structure includes only a demat account opened in the name of the client. For the purposes of a bank account, the client becomes one of the beneficiary owners of a pooled bank account which is used for funding, top-ups and other banking requirements.

The performance of a discretionary portfolio manager is calculated using time weighted rate of return (TWRR) method for the immediately preceding three years or period of operation, whichever is lesser.
SEBI Circular No. SEBI/HO/IMD/DF1/CIR/P/2020/26 dated February 13, 2020, inter-alia, provides information on reporting of performance by Portfolio Managers and also a client reporting format which includes information on the performance of the client account, portfolio manager and the appropriate benchmark.

The portfolio manager shall furnish periodically a report to the client, as per the agreement, but not exceeding a period of three months and such report shall contain the following details, namely: -

  • the composition and the value of the portfolio, description of securities, number of securities, value of each security held in the portfolio, cash balance and aggregate value of the portfolio as on the date of report;
  • transactions undertaken during the period of report including date of transaction and details of purchases and sales;
  • beneficial interest received during that period in the form of interest, dividend, bonus shares, rights shares, etc;
  • expenses incurred in managing the portfolio of the client;
  • details of risk foreseen by the portfolio manager and the risk relating to the securities recommended by the portfolio manager for investment or disinvestment;
  • default in payment of coupons or any other default in payments in the underlying debt security and downgrading to default rating by the rating agencies, if any;
  • details of commission paid to distributor(s) for the particular client.

The client will receive, via email, a monthly/quarterly account statement, statements on the performance and status of his/her/its portfolio. This statement will include all details related to the portfolio holdings, transaction statement and statements of dividends received and expenses incurred. Also, ten working days after the PMS account has been activated, the client will receive login credentials for an Online Portal, through which the clients can access all details related to their PMS account including account performance and NAV.

Yes. All investments involve a certain amount of risk, including possible erosion of the principal amount invested.

The portfolio manager is acting in a fiduciary capacity on behalf of the investor. Therefore, the tax liability for a PMS investor would be the same as that of a direct investor. MCA LLP PMS invests primarily in equities. However, the investor should consult a tax advisor for any tax planning related queries. Audited statement of accounts will be provided by MCA LLP at the end of the financial year, which would help the investor in assessing his/her/its tax liabilities.

Investors would find the name, address, email id and telephone number of the investor relation officer of the portfolio manager (who attends to the investor queries and complaints) in the Disclosure Document. The grievance redressal and dispute mechanism is also mentioned in the Disclosure Document. In case of non redressal of the complaint by the Portfolio Manager, investors can approach SEBI for redressal of their complaints. Investors may lodge their complaints through SCORES (SEBI Complaints Redress System - https://scores.gov.in/scores/Welcome.html).