Key Things Every NRI Should Know About Portfolio Management Services

1. Key Things Every NRI Should Know About Portfolio Management Services For Non-Resident Indians (NRIs), managing investments across borders can be a complex and time-consuming task. With India emerging as a dynamic and high-growth economy, many NRIs are looking to invest in Indian markets—but navigating regulations, tax implications, and fluctuating market conditions requires a strategic approach. This is where NRI Portfolio Management Services come into play. Whether you're looking to grow your wealth, diversify assets, or plan for long-term financial goals in India, understanding PMS is essential. Here are the key things every NRI should know about portfolio management services: 1. What Are Portfolio Management Services (PMS)? NRI Portfolio Management Services are professional investment services offered by SEBI- registered firms or portfolio managers. Unlike mutual funds, PMS offers personalized investment solutions tailored to your risk profile, financial goals, and time horizon. PMS managers invest in equities, fixed income, or other asset classes on your behalf. 2. Who Is Eligible for PMS as an NRI? To invest in PMS in India, NRIs must: Hold an NRE or NRO bank account Have a Portfolio Investment Scheme (PIS) account with an authorized bank Complete KYC compliance, including PAN card, overseas address proof, passport, and other documents

2. It’s advisable to work with a PMS provider who is experienced in managing NRI accounts and understands RBI and FEMA guidelines. 3. Minimum Investment Requirement As per SEBI regulations, the minimum investment required to open a PMS account in India is ₹50 lakhs. This ensures that PMS is more suited to high-net-worth individuals (HNIs) looking for customized investment management. 4. Personalized Investment Strategy One of the biggest advantages of PMS is tailored portfolio construction. Unlike mutual funds where a single strategy fits all investors, PMS managers create a portfolio that aligns with your: Risk tolerance (conservative, balanced, aggressive) Financial goals (retirement, wealth creation, legacy planning) Investment horizon This flexibility is ideal for NRIs who may have specific global financial plans but still want to leverage Indian market growth. 5. Transparency and Reporting Most reputed NRI Portfolio Management Services providers offer real-time portfolio tracking, regular reports, and detailed performance analytics. This ensures transparency, helping NRIs stay informed regardless of their location. Some PMS providers also offer dedicated relationship managers for personalized support. 6. Taxation for NRIs under PMS Tax treatment depends on the type of asset (equity or debt) and the holding period: Equity gains held for more than 12 months are taxed at 10% LTCG (Long-Term Capital Gains) above ₹1 lakh. Short-Term Capital Gains (STCG) on equities held for less than 12 months are taxed at 15%. Debt instruments are taxed differently, and TDS (Tax Deducted at Source) may apply on capital gains. NRIs are advised to consult with a tax advisor for clear understanding and efficient tax planning. 7. Repatriation of Funds If you invest through an NRE account, the capital and gains are fully repatriable, subject to RBI compliance. If investing through an NRO account, repatriation is allowed up to a certain limit per financial year, subject to applicable taxes. 8. Professional Management & Risk Control

3. NRI Portfolio Management Services managers have the expertise to make informed decisions using fundamental and technical analysis. They also rebalance your portfolio periodically to manage market volatility and risks. This hands-on management is crucial for NRIs who may not have the time or resources to monitor Indian markets regularly. 9. Fees and Charges PMS providers usually charge: A fixed management fee (usually 1–2% annually) A performance-based fee (above a hurdle rate) Other operational charges (custody, audit, etc.) Be sure to review the fee structure and agreement terms before signing up. 10. Choosing the Right PMS Provider Look for PMS providers with: Proven track record and consistent returns Experience in managing NRI portfolios Transparent fee structures Easy digital onboarding and reporting tools You can compare offerings from banks, boutique investment firms, and independent asset managers before making a decision. Conclusion For NRIs looking to invest in India with a professional, customized approach, NRI Portfolio Management Services can be a powerful tool. However, success depends on choosing the right manager, understanding regulatory compliance, and aligning the strategy with your global financial goals.