FAQ

PMS would invest on behalf of its clients in their separately managed accounts in various securities including listed equities, unlisted equities, fixed income instruments, hybrid or structured products etc.

Investment solutions in a PMS can be provided in three ways – Discretionary Portfolio Management, Non-Discretionary Portfolio Management, and Advisory Portfolio.

• Discretionary: Under these services, the choice, as well as the timings of the investment decisions, rest solely with the Portfolio Manager.
• Non-Discretionary: Under these services, the portfolio manager will execute trades based on the client’s investment decision.
• Advisory: Under these services, the portfolio manager only suggests investment ideas. The choice, as well as the execution of the investment decisions, rest solely with the Investor.

PMS firms will have a team of professional portfolio manager(s) and analysts who are specialised in one or more asset classes and investment strategies. The PMS team is responsible for selecting and continuously tracking investments in various asset classes as per the mandate and strategy to optimise returns. The funds can potentially be tailored in accordance with the client’s financial objective, constraints, risk capacity, tax liability incidence, and other factors.

Portfolio Management Services can be offered only by SEBI registered Portfolio Managers.

The specialised investment solutions provided by Portfolio Managers typically cater to high net-worth clients. These clients can be individuals or Institutional entities who require a dedicated investment management service.

The PMS platform is ideal for investors who:

• Seek to invest in asset classes like equity, fixed income, structured products etc.
• Value a highly personalised investment management solution.
• Are discerning and appreciate a high level of client service.
• Require investment advice for long-term wealth creation.

Investors can log on to the website of SEBI www.sebi.gov.in for information on SEBI regulations and circulars pertaining to portfolio managers. Addresses of the registered portfolio managers are also available on the SEBI website. Information on monthly reports submitted by Portfolio Managers to SEBI can be accessed at https://www.sebi.gov.in/sebiweb/other/OtherAction.do?doPmr=yes

The portfolio manager provides to the client the Disclosure Document prior to entering into an agreement with the client. It is also made available on our website for anytime access. 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.

• As per SEBI norms, the minimum investment in a PMS scheme is now Rs. 50 Lakhs for fresh investments. Additional investments can be minimum of Rs. 10 Lakhs or above for existing clients.
• At Unifi, there is no maximum investment limit into a portfolio account. We cater to clients of varying portfolio sizes, and our Relationship Managers are equipped to manage individual accounts of a sizeable asset under management (AUM).

As per the Portfolio Management Regulations prescribed by SEBI, we cannot guarantee a specific rate of return. However, the investment objective of any Portfolio Manager is to outperform the benchmark indices.

The ideal time horizon for an event arbitrage/high yield strategy is between 12 - 18 months and 48 - 60 months for pure equity strategies.

Unifi provides each client with secure account login and password that can be used to access a comprehensive portfolio summary on a daily basis. In addition to the online record of transactions, Unifi also provides its clients a monthly portfolio statement.

In addition to the online record of transactions, Unifi also provides its clients with a quarterly statement of their portfolio containing the following details, namely:

• Portfolio Holding as on report date.
• Transactions report for the selected period.
• Beneficial interest received during the selected period.
• Expenses incurred in the portfolio of the client during the selected period.
• 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 the distributor(s) for the client.

Unifi’s Portfolio Management platform ensures that there is absolutely no lock-in of a client’s funds. A client is free to redeem or add-in part or whole from/to his account with Unifi.

The tax liability of a PMS investor is the same as that of an investor who accessed the capital markets by himself. Under the PMS scheme, each transaction will be considered as an independent trade, and capital gains will be applied to each transaction depending on the holding period of the stock.

At present, the long-term capital gain tax is 11.96%, while the short-term capital gain tax is 17.94%.

The initial corpus into Unifi’s Portfolio Management scheme can be either in the form of cash funded into an account opened in the client’s name with a designated bank or the form of securities/shares.

THE DOCUMENTS REQUIRED TO ENABLE YOUR PORTFOLIO MANAGEMENT ACCOUNT AT UNIFI ARE:

• Account Opening Form
• Address Proof
• Identity Proof
• PAN Card Copy
• Bank Account Opening Form
• Relevant KYC Forms prescribed by the regulator

The services provided by Unifi are governed by the agreement between Unifi and the investor. The agreement covers the details as specified in the SEBI Portfolio Manager Regulations. However, additional requirements can be specified by the Portfolio Manager in the agreement with the client. An investor is advised to read the agreement carefully before signing it.

UNIFI’S PMS COMPENSATION IS BASED ON TWO OPTIONS THAT A CLIENT MAY CHOOSE FROM:

• A flat management fee as agreed by the client will be charged proportionately on a monthly basis on the funds managed, (Or)
• A performance-based fee, computed as per a pre-agreed proportion of the profit earned over and above a predetermined threshold return.

Calculation of performance fee is done considering the high watermark principle.

'High Water Mark' is the higher of either 'corpus investment value' or 'highest portfolio value at which fees has been paid historically'.

Illustration of how the High-Water Mark would work: A client's initial contribution is Rs 1,00,00,000, which rises to Rs 1,25,00,000 in its first year. Therefore, a performance fee would be payable on the Rs 25,00,000 return. Next year, the portfolio value drops to Rs 110,00,000. Therefore, no performance fee is payable. In the third year, the portfolio value rises to Rs 1,40,00,000. A performance fee is payable only on the profit over the previously achieved high watermark, i.e., Rs 1,25,00,000 less performance fee (including taxes).

Clients can withdraw their profits at any time, provided they maintain the prescribed Rs. 50 Lakh minimum limit for PMS investors.

When you open an account with Unifi, you are required to allocate your investment to one or more of Unifi’s products.

We will invest your capital in accordance with the respective products’ investment and risk framework.

The PMS platform permits investments by all Indian nationals, resident or otherwise. In order to invest through the PMS scheme, NRIs will have to open a PIS account.

To invest in the Secondary markets in India, NRIs need to obtain permission from the Reserve Bank of India (RBI). In order to do so, a designated bank account has to be opened under the Portfolio Investment Scheme (PIS), and all transactions related to the investment in the secondary markets need to be routed through this account.

• If a client has been introduced by a wealth manager or RIA, he would typically call his RM in the introducing firm and reach out to Unifi as a second step if he requires further assistance.
• Unifi provides its clients unrestricted and continuous access to its Relationship Managers who interact with clients on a regular basis for day-to-day requirements.
• However, in case of any specific requirements that arise, contact details of senior management at Unifi, including the Chief Investment Officer, are made available in the welcome letter sent to clients.