frequently asked questions

Stack Reserve is an exclusive high-ticket investment solution, offering tailored portfolios in PMS, AIFs, CRE, International Investing, Smallcases, and MLDs. The aim is to redefine premium investing, catering to sophisticated clients seeking personalized excellence, unique opportunities, and global diversification. We prioritize delivering a seamless, user-centric platform that elevates your wealth growth potentials.

In order to invest in Stack Reserve, any one of the following should be true:

1. You should be a member of the Stack ONE program.

2. Your annual income is above Rs.10 Lac as per your KYC details.

3. Your total portfolio value is above Rs.10 Lac

Upon clicking �Talk to advisor� in Stack Reserve a Calendly Invite link will be generated for you which can allow you to set up a 15 minute call with the designated RM for a discussion to resolve any queries you have before investing. For your own reference, all the details for our PMS schemes are available in the Stack Reserve section.

Portfolio Management Service (PMS) is a professional investment service where a qualified portfolio manager invests your money in a portfolio of securities, such as stocks, bonds, and mutual funds, based on your investment goals and risk profile. PMS is a more personalized investment option than mutual funds, as the portfolio manager will create a unique portfolio for you based on your individual needs.

Fees in Portfolio Management Services (PMS) typically include:

- Management fees: An annual fee charged as a percentage of your portfolio's value, usually ranging from 1% to 3%.

- Performance fees: A portion of the profits generated, often around 10% to 20% of the returns above a predefined benchmark.

- Brokerage and transaction costs: Charges for buying and selling securities within the PMS.

- Custodian fees: Fees for safekeeping and maintaining your assets.

- Advisory fees: If you receive personalized investment advice, there may be an additional fee.

Stack Reserve does the job of choosing a PMS provider for you. Choosing the right PMS provider involves intensive research into factors such as:

- Your financial goals and risk tolerance.

- The PMS provider's track record and reputation.

- Investment strategy and style of the PMS.

- Minimum investment requirements.

- Fee structure.

- Regulatory compliance.

- Transparency and reporting.

With Stack Reserve, we recommend the best PMS providers handpicked by our expert investment team, to make the process of PMS investing as seamless as possible for you.

PMS offers personalized portfolio management, while mutual funds pool money from multiple investors into a single fund managed by professionals. PMS provides direct ownership of securities, enabling more customization. Mutual funds on the other hand are highly regulated and offer better liquidity, while PMS may have fewer regulatory constraints and may have a lock-in period. PMS typically has higher fees and requires a higher minimum investment.

Returns in PMS can vary widely depending on the strategy, market conditions, and the skill of the portfolio manager. Historically, some PMS have outperformed benchmarks, but there are no guarantees, and losses are possible.

Risks include market risk, individual stock risk, liquidity risk (especially in small-cap stocks), and concentration risk if the portfolio is not well-diversified. Additionally, PMS are subject to regulatory risks and may have lock-in periods.

PMS may have a lock-in period, typically ranging from one year to three years. During this period, you may not be able to redeem your investment without penalties.

The ideal investment horizon for PMS varies based on your goals. It's generally recommended to have a medium to long-term perspective, which could be several years to a decade or more, depending on your objectives.

The process for selecting PMS services involves:

- Conducting due diligence on PMS providers.

- Evaluating their track record and performance.

- Assessing their investment strategies and alignment with client needs.

- Considering fee structures and regulatory compliance.

- Ensuring transparency and reporting standards.

The appropriate allocation to PMS in your portfolio depends on your risk tolerance, financial goals, and the specific PMS strategy. Typically, PMS should be a portion of your overall portfolio, with diversification across various asset classes to manage risk. A common range might be 10% to 30% of your total portfolio, but this can vary significantly.

PMS stands for Portfolio Management Services. It is a type of investment service where a professional portfolio manager manages your investment portfolio on your behalf. The portfolio manager will invest your money in a variety of assets, such as stocks, bonds, and mutual funds, to meet your investment goals and risk appetite.

PMS is a good option for investors who want to get professional help with their investments. It is also a good option for investors who have a high-net-worth or who want to invest in illiquid assets.

The following are the eligibility criteria for investing in PMS in India:

Net worth: The minimum net worth requirement for investing in PMS is Rs. 50 lakhs for individuals and Rs. 25 lakhs for HUFs.

Experience: You must have at least 3 years of investment experience before you can invest in PMS.

Risk appetite: PMS is a high-risk investment option, so you must have a high risk appetite before you can invest in it.

The minimum investment amount for PMS in India is ?50 lakhs. However, some PMS providers may have a higher minimum investment amount.

To invest in PMS, you must be an Indian resident and have a Demat and trading account. You must also provide the portfolio manager with your PAN card and other KYC documents.

Expertise: PMS is managed by experienced portfolio managers who have the expertise to choose the right assets for your portfolio and manage your risk.

Diversification: PMS can help you diversify your portfolio by investing in a variety of assets. This can help you reduce your risk.

Customization: PMS can be customized to meet your specific investment goals and risk appetite

Transparency: PMS providers are required to provide you with regular reports on your portfolio's performance.

Liquidity: You can easily liquidate your PMS investments if you need to access your money.

Here are some of the risks of PMS investing:

High risk: PMS investments are subject to market risks, which means that your investment value can go down as well as up.

Illiquidity: PMS investments can be illiquid, which means that it can be difficult to sell your investment quickly.

High fees: PMS investments typically have high fees, which can eat into your returns.

Lack of transparency: PMS investments are not as transparent as traditional investments, which makes it difficult to track your investment performance.

Risk of fraud: There have been cases of fraud in the PMS industry, so it is important to do your research before investing.

To track the performance of your PMS, you can do the following:

Get regular updates from your PMS provider: Your PMS provider should provide you with regular updates on the performance of your portfolio. This information should include the value of your portfolio, the returns you have earned, and the fees you have paid.

Use a PMS tracking tool: There are a number of PMS tracking tools available online. These tools can help you to track the performance of your portfolio over time and compare it to other portfolios.

The tax implications of PMS investing in India are as follows:

Equity investments: The capital gains arising from equity investments made through PMS are taxed at 15% (short-term) or 10% (long-term).

Non-equity investments: The capital gains arising from non-equity investments made through PMS are taxed at 20% with indexation.

Dividend income: Dividend income received from PMS investments is taxed at the investor's marginal tax rate.

Service charges: The service charges paid to the PMS are not tax-deductible.

Here are some factors to consider when comparing PMSs:

Investment objective: What are your investment goals? Are you looking for short-term or long-term growth?

Risk appetite: How much risk are you comfortable with? PMSs can vary in risk depending on the investment strategies they use.

Fees: How much do the PMSs charge in fees? This can have a significant impact on your returns.

Track record: How has the PMS performed in the past? This can give you an idea of their potential future performance.

Portfolio manager: Who is the portfolio manager? Do they have the experience and expertise to manage your money?

The fees associated with PMS investing in India vary depending on the PMS provider. However, some of the common fees include:

Management fee: This is a fixed fee that is charged on a monthly or annual basis. The management fee typically ranges from 1% to 2% of the invested amount.

Performance fee: This is a fee that is charged on the profits generated by the PMS. The performance fee is typically charged at a rate of 10% to 20% of the profits.

Entry fee: This is a one-time fee that is charged when you invest in a PMS. The entry fee is typically around 1% of the invested amount.

Exit fee: This is a one-time fee that is charged when you exit from a PMS. The exit fee is typically around 1% of the invested amount.

In addition to these fees, PMS providers may also charge other fees, such as brokerage fees and custodian fees.