Frequently Asked Questions

If you have any concerns please read this collection of frequently asked questions before contacting us. If you are still unclear about something feel free to contact.

  • What is a Portfolio Management Service (PMS)?

    PMS is a service provided by SEBI-registered Portfolio Managers, where funds are professionally managed on behalf of clients to help them achieve their investment objectives.

  • Who is a Portfolio Manager?

    A Portfolio Manager is a corporate entity that, through a contract with a client, advises, directs, or undertakes the management or administration of a portfolio of securities or funds on the client’s behalf. Tradeswift Broking Private Limited is licensed by SEBI to offer such services.

  • What is the difference between a Discretionary Portfolio Manager and a Non-Discretionary Portfolio Manager?

    • Discretionary Portfolio Manager: Manages client funds independently based on the client’s needs, without requiring specific directions from the client.
    • Non-Discretionary Portfolio Manager: Manages funds according to the client’s directives and instructions.
  • Who is the typical PMS investor?

    PMS solutions cater to a niche group of investors, such as high net-worth individuals (HNIs) and entities like HUFs, partnership firms, sole proprietorship firms, and other eligible investors.

  • Are there risks associated with PMS investments?

    Yes, PMS investments carry risks, including potential loss of the invested capital. Investors should carefully examine the fund and offering terms before making an investment decision.

  • Are investors required to open new demat accounts for PMS investments?

    Yes, regulatory guidelines mandate that PMS investors open a new demat account for their PMS investments.

  • Can clients hold their demat accounts jointly with other applicants?

    Yes, clients can jointly hold a demat account with one other applicant, with a maximum of two applicants per account. KYC requirements apply to all joint holders.

  • What is the procedure to change a nominee for a PMS account?

    To change a nominee, clients must complete a "change of nominee" form and submit it to Tradeswift. They can contact their relationship manager or email support@tradeswift.net for assistance.

  • How can clients access their PMS account statement?

    Portfolio Managers provide account statements monthly or upon the client’s request, as per SEBI regulations.

  • What is a PMS Disclosure Document?

    The Disclosure Document offers detailed information about the portfolio services, enabling informed decision-making. It includes details on fees, risks, related-party transactions, portfolio manager performance, and audited financial statements for the past three years.

  • Can Non-Resident Indians (NRIs) invest in Tradeswift PMS?

    Yes, NRIs can invest in Tradeswift PMS by opening an NRI PMS Account.

  • What is the fee structure for Tradeswift PMS clients?

    Clients can choose between:

    • - Fixed Fee
    • - Variable Fee
    • - Hybrid/Performance-Linked Fee (based on a hurdle rate and charged beyond the high watermark)
    • Operational expenses such as custodian charges, fund accounting fees, audit fees, brokerage, and taxes are additional and charged on actuals.

  • What is a ‘Hurdle Rate’?

    The hurdle rate is the minimum return a Portfolio Manager must achieve for the client before charging an incentive fee.

  • What is a ‘High Watermark’?

    A high watermark is the highest value achieved by the portfolio (or NAV) at which fees have been charged historically, or the initial investment value, whichever is higher.

  • What charges, apart from PMS fees, are levied on a PMS account?

    Additional charges may include:

    • - Brokerage on transactions
    • - Taxes on transactions
    • - Custodian and fund accounting fees
    • - Audit fees
    • - One-time charges for stamp paper and notary during account opening
  • What is the tax liability for PMS clients?

    Tax liability for PMS investors is the same as if they were directly investing in the capital markets. Clients are advised to consult a tax expert for specific guidance.