PMS broker Accounts

pms Account Types & Opening Guide 2025: Complete Comparison and Registration Steps

Part 1: pms Account Types Explained

Overview of pms Account Types

Portfolio Management Services (PMS) offer various account types tailored to different investor needs. The primary types of PMS accounts include:

1. Discretionary Portfolio Management Services (DPMS)

• Minimum Deposit Requirement: ₹50 lakh
• Spread/Commission Structure: Varies by manager; typically includes management fees and performance fees.
• Leverage Options: Depends on the underlying assets; generally lower leverage due to risk management.
• Key Features: Full autonomy to the portfolio manager for investment decisions, real-time execution of trades.
• Target User Profile: High Net-Worth Individuals (HNIs) seeking professional management without personal involvement.
• Trading Instruments Available: Equities, bonds, mutual funds, and other securities.

1. Non-Discretionary Portfolio Management Services (NDPMS)

• Minimum Deposit Requirement: ₹50 lakh
• Spread/Commission Structure: Similar to DPMS but may include advisory fees.
• Leverage Options: Similar to DPMS.
• Key Features: Portfolio manager provides recommendations, but the client makes the final decision on trades.
• Target User Profile: Investors who prefer to be involved in decision-making while still receiving professional advice.
• Trading Instruments Available: Equities, bonds, and other securities.

1. Advisory Portfolio Management Services

• Minimum Deposit Requirement: ₹50 lakh
• Spread/Commission Structure: Primarily advisory fees based on assets under management.
• Leverage Options: Varies based on the strategy recommended.
• Key Features: Clients receive tailored advice and strategies but retain full control over their investments.
• Target User Profile: Investors looking for personalized advice without relinquishing control.
• Trading Instruments Available: Equities, bonds, and other financial products.

Account Type Comparison Table

Recommended Account Types by Trader Level

• Beginner: Non-Discretionary PMS for guidance with some control.
• Intermediate: Advisory PMS for tailored advice while making decisions.
• Advanced: Discretionary PMS for those comfortable with professional management.

Part 2: pms Account Features Comparison

Detailed pms Account Features

When comparing the features of different PMS account types, consider the following aspects:

• Minimum Deposit:

• All account types require a minimum deposit of ₹50 lakh.

• Maximum Leverage:

• Varies by asset class; generally lower for discretionary accounts.

• Spreads (Typical/Minimum):

• Varies by portfolio manager; typically includes management and performance fees.

• Commission Fees:

• Management fees range from 1% to 2% annually; performance fees may apply based on profits.

• Lot Size:

• Standard lot sizes apply; specific to the instruments traded.

• Available Trading Platforms:

• Most PMS providers offer access to platforms like MT4, MT5, or proprietary systems.

• Execution Type:

• Market execution is common; some may offer instant execution based on the provider.

• Islamic Account Availability:

• Check with individual PMS providers for swap-free options.

• Swap-Free Options:

• Available upon request; specific terms may apply.

• Demo Account Features:

• Some providers offer demo accounts to simulate trading.

Advantages and Disadvantages of Each Account Type

Discretionary PMS

• Advantages:

• Professional management.

• Quick decision-making.

• Tailored investment strategies.

• Regulatory oversight ensures safety.

• Disadvantages:

• Less control for the investor.

• Higher fees compared to other types.

• Dependence on manager's expertise.

Non-Discretionary PMS

• Advantages:

• Client retains decision-making power.

• Professional advice available.

• Flexibility in investment choices.

• Disadvantages:

• Requires more time and involvement from the investor.

• Potential for conflicting advice.

Advisory PMS

• Advantages:

• Personalized investment strategies.

• Full control over investments.

• Flexibility to adapt strategies as needed.

• Disadvantages:

• Requires investor knowledge and involvement.

• May not yield as high returns as discretionary management.

Part 3: pms Account Registration Requirements

pms Account Registration Requirements

To open a PMS account, investors must meet specific eligibility criteria:

• Eligibility Criteria:

• Age Requirements: Must be at least 18 years old.

• Geographic Restrictions: Primarily available to residents of India; NRIs can also invest under specific regulations.

• Prohibited Countries: Investors from countries under international sanctions may be restricted.

• Identity Verification Documents Needed:

• PAN Card (mandatory).

• Aadhar Card or Passport for identity verification.

• Recent passport-sized photographs.

• Proof of Residence Requirements:

• Utility bills, bank statements, or government-issued documents showing the current address.

• Additional Documentation for Professional Accounts:

• Corporate clients may need to provide incorporation documents, board resolutions, and KYC of authorized signatories.

KYC/AML Compliance Procedures

• Investors must complete Know Your Customer (KYC) and Anti-Money Laundering (AML) checks as mandated by SEBI.

Verification Time Frames

• Account verification typically takes 3-5 business days, depending on the completeness of submitted documents.

Part 4: pms Account Opening Process

Step-by-Step pms Account Opening Guide

1. Visit Website and Click Registration: Navigate to the PMS provider's official website.
2. Personal Information Entry: Fill in personal details such as name, contact information, and financial background.
3. Choose Account Type: Select the desired PMS account type based on your investment strategy.
4. Set Trading Preferences: Specify preferences regarding risk tolerance and investment goals.
5. Document Upload: Upload required KYC documents and proof of residence.
6. Account Verification: Await confirmation of document verification from the PMS provider.
7. Fund Your Account: Transfer the minimum deposit amount to activate the account.
8. Start Trading: Once the account is funded, begin trading as per the chosen strategy.

Desktop vs Mobile Registration Differences

• The registration process is generally similar across platforms, but mobile apps may offer a more streamlined experience.

Common Registration Issues and Solutions

• Incomplete Documentation: Ensure all required documents are submitted.
• Verification Delays: Contact customer support for updates if verification takes longer than expected.

Average Account Approval Time

• Typically, account approval takes 3-5 business days.

How to Upgrade/Downgrade Account Types

• Contact customer support or your relationship manager to discuss options for changing account types.

Part 5: pms Demo Account Information

pms Demo Account Guide

• Demo Account Features and Benefits:

• Allows investors to practice trading strategies without financial risk.

• Access to real-time market data and trading tools.

• How to Open a Demo Account:

• Visit the PMS provider's website and select the demo account option.

• Fill in the required information and submit.

• Demo Account Limitations:

• Limited to a virtual balance; may have time constraints.

• Virtual Balance Amount:

• Typically, demo accounts provide a virtual balance of ₹10 lakh or more.

• Demo vs Live Account Differences:

• Live accounts involve real money, while demo accounts are for practice.

• Duration/Expiry of Demo Accounts:

• Demo accounts may expire after 30-90 days, depending on the provider.

Part 6: pms Islamic Account Details

pms Islamic Account Details

• Swap-Free/Islamic Account Availability:

• Some PMS providers offer Islamic accounts that comply with Sharia law.

• Eligibility Requirements:

• Investors must request this option during the account opening process.

• Differences from Standard Accounts:

• Islamic accounts do not incur swap fees for overnight positions.

• How to Apply for Islamic Account:

• Indicate the request for an Islamic account during the registration process.

• Restrictions or Special Conditions:

• Specific terms may apply; consult with the PMS provider for details.

FAQs – pms Account Types & Opening

1. What account types does pms offer？

• PMS offers Discretionary, Non-Discretionary, and Advisory account types.

1. What is the minimum deposit for each account type？

• The minimum deposit for all account types is ₹50 lakh.

1. How long does pms account verification take？

• Verification typically takes 3-5 business days.

1. Does pms offer demo accounts？

• Yes, many PMS providers offer demo accounts for practice.

1. Can I have multiple account types with pms？

• Yes, investors can hold multiple account types with different strategies.

1. Does pms offer Islamic/swap-free accounts？

• Yes, some providers offer Islamic accounts upon request.

1. What documents do I need to open a pms account？

• Required documents include PAN Card, proof of identity, and proof of residence.

1. Can I change my account type after registration？

• Yes, you can upgrade or downgrade your account type by contacting customer support.