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DEFINITION:
PORTFOLIO : As per definition of SEBI Portfolio means a collection of securities owned by an investor. It represents the total holdings of securities belonging to any person". PORTFOLIO MANAGEMENT: The process of managing the assets of a mutual fund, including choosing and monitoring appropriate investments and allocating funds accordingly.
INTRODUCTION
As per definition of SEBI Portfolio means a collection of securities owned by an investor. It represents the total holdings of securities belonging to any person". It comprises of different types of assets and securities In finance, a portfolio is an appropriate mix or collection of investments held by an institution or an individual. Holding a portfolio is a part of an investment and risk-limiting strategy called diversification. By owning several assets, certain types of risk (in particular specific risk) can be reduced. The assets in the portfolio could include stocks, bonds, options, warrants, gold certificates, real estate, futures contracts, production facilities, or any other item that is expected to retain its value. In building up an investment portfolio a financial institution will typically conduct its own investment analysis, whilst a private individual may make use of the services of a financial advisor or a financial institution which offers portfolio management services. Portfolio management refers to the management or administration of a portfolio of securities to protect and enhance the value of the underlying investment. It is the management of various securities (shares, bonds etc) and other assets (e.g. real estate), to meet specified investment goals for the benefit of the investors. It helps to reduce risk without sacrificing returns. It involves a proper investment decision with regards to what to buy and sell. It involves proper money management. It is also known as Investment Management
Maximum Returns, Minimum Risks: Portfolio management services assure you of the best downside protection for your portfolio. You will benefit with practical financial advice that can help convert all paper gains into real profits in the shortest time. Adjust Your Portfolio To Market Trends: When you avail of portfolio management services, you enjoy greater freedom and flexibility to diversify your investments.
The personalised services also translates into zero paper work and all your financial statements will be e-mailed.
1. DISCRETIONARY PMS
The following are indicative types of costs and expenses for clients availing the discretionary Portfolio Management services of Credit Suisse. The exact basis of charge relating to each of the services shall be received by your Portfolio Manager.Management fees relate to the Portfolio Management Services offered to clients. The fee can be in the form of a recurring charge based on the asset size held within the Portfolio or in the nature of a variable charge that is linked to portfolio returns achieved (based on the High Watermark principle issued in SEBI circular dated October 05, 2010) or on the transaction value or a combination of all or any of these subject to minimum fees as agreed with client. Management fees shall not exceed 4% each year of the Client's Portfolio except where the management fees are in the nature of a variable charge (performance-based). Where the management fees is a percentage of the quantum of funds managed, the Portfolio Manager may charge management fees based on the average value of portfolio (calculated on a daily/ weekly/ monthly or quarterly basis). Management fees can vary from client to client.
2. NON-DISCRETIONARY PMS
The following are indicative types of costs and expenses for clients availing the nondiscretionary services of Credit Suisse. The exact basis of charge relating to each of the services shall be received by your Portfolio Manager. Management fees relate to the Portfolio Management Services offered to clients. The fee can be in the form of a recurring charge based on the asset size held within the Portfolio or in the nature of a variable charge that is linked to portfolio returns achieved (based on the High Watermark principle issued in SEBI circular dated October 05, 2010) or on the transaction value or a combination of all or any of these subject to minimum fees as agreed with client. Management fees shall not exceed 4% each year of the Client's Portfolio except where the management fees are in the nature of a variable charge (performance-based). Where the management fees is a percentage of the quantum of funds managed, the Portfolio Manager may charge management fees based on the average value of portfolio (calculated on a daily/ weekly/ monthly or quarterly basis). Management fees can vary from client to client. Any brokerage charges (not exceeding 2%), third-party charges and other charges like service charge, stamp duty, securities transaction tax ("STT"), transaction costs (not exceeding 2% or Rs 500/ per transaction whichever is higher) ,custody costs (not exceeding 0.15% per annum), turnover tax, exit and entry loads on the purchase and sale of shares, stocks, bonds, debt, deposits, units and other financial instruments will be charged separately to the client.
Securities and Exchange Board of India (Portfolio Managers) Regulations, 1993 Date
07-Jan-1993 10-Feb-2012 11-Aug2008 30-Nov2006 07-Sep-2006 05-Jul-2006 27-May2004 22-Feb-2000 30-Sep-1999 [As Amended upto February 10, 2012] Securities and Exchanage Board of India ((Portfolio Managers)(Amendment) Regulations, 2012) Securities and Exchange Board of India (Portfolio Managers) (Amendment) Regulations, 2008 Securities And Exchange Board Of India (Portfolio Managers) (Third Amendment) Regulations, 2006 Securities And Exchange Board Of India (Portfolio Managers) (Second Amendment) Regulations, 2006 Securities And Exchange Board Of India (Portfolio Managers) (Amendment) Regulations, 2006 Securities And Exchange Board Of India (Portfolio Managers) (Amendment) Regulations, 2004 Securities and Exchange Board of India(Portfolio Managers) (Amendment) Regulations, 2000 Securities and Exchange Board of India (Portfolio Managers) (Amendment) Regulations 1999
Details
Securities and Exchange Board of India (Portfolio Managers) Regulations, 1993
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31. Omitted by the Securities (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002]
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SCHEDULE I:
FORM A: Application for Grant of Certificate/Renewal of Certificate FORM B: FORM C: Certificate of Registration Details of Portfolio Manager
SCHEDULE II: Fees SCHEDULE III: Code of Conduct SCHEDULE IV: Contents of Agreement between the Portfolio Manager and his Clients SCHEDULE V: Disclosure Document
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UNDER REGULATION 14 OF THE SECURITIES AND EXCHANGE BOARD OF INDIA (PORTFOLIO MANAGERS) REGULATIONS, 1993 This Disclosure Document (Document) has been filed with the Securities and Exchange Board of India (SEBI) along with the certificate in the prescribed format pursuant to regulation 14 of the Securities and Exchange Board of India (Portfolio Managers) Regulations, 1993 as amended till date (Regulations). The purpose of this document is to provide essential information about the Portfolio Management Services in a manner to assist and enable the clients in making an informed and considered decision in relation to engaging Credit Suisse Securities (India) Private Limited ( CS India) as a Portfolio Manager (Portfolio Manager). Information about the Portfolio Manager is provided on page 8 of this document. Clients should carefully read this entire document prior to making a decision to avail of the portfolio management services (as hereinafter defined). Clients are advised to retain this document for future reference. Any other relevant information may be provided upon request. Clients may also wish to seek further clarifications after the date of this document from the Portfolio Manager. The portfolio manager is permitted to provide Portfolio Management Services pursuant to its registration as a Portfolio Manager with SEBI under the regulations. The Portfolio Manager holds a valid registration, registration no. INP000002478, dated 11 January 2011. All intermediaries involved in providing the Portfolio Management Services are registered with SEBI as of the date of this document.
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