Frequently Asked Questions
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Who is the Portfolio Management Services ( PMS ) custodian?
Kotak Mahindra Bank Ltd. is the SEBI-registered custodian for Shepherd’s Hill PMS clients.
Kotak Mahindra Bank Ltd., one of India’s largest private banks, is the SEBI-registered custodian appointed for Shepherd’s Hill Portfolio Management Services in India (PMS India) clients.
Will I get regular income / dividends from the PMS?
All dividends/income are reinvested, while withdrawals are permitted anytime subject to applicable fees, provided the PMS balance remains above ₹50 lakh.
No, all dividends/income that is received in your Portfolio Management Scheme accounts will be reinvested. Dividend income received on your Portfolio Management Scheme portfolio is usually 1-2% per year on average. You are free to proactively withdraw any amount from the Portfolio Management Scheme at any time, subject to applicable early withdrawal fees, as long as the PMS schemes account balance does not go below Rs. 50 lakhs.
Can I do a systematic investment plan (SIP) or add more funds to my PMS bank account?
After the initial ₹50 lakh minimum investment, additional funds can be added anytime in lump sums or tranches and will be invested by the PMS fund manager.
Yes, the PMS fund offers this option. Once the initial amount of minimum Rs. 50 lakhs is funded in your PMS funds account, you can add funds to the PMS funds bank account at any time, in lump sum or in tranches. This will be duly invested by the PMS funds manager.
How will you protect me when there is a market crash?
- Short-term market downturns cannot be fully avoided, but long-term investing and careful stock selection aim to support recovery and growth.
- When valuations are high, funds may be held in cash, fixed-income instruments, or gold ETFs to reduce downside risk
- There is no way to completely insulate yourself from a market downturn in the short-term with PMS investment. However, if you stick with the PMS investment over the long term, our portfolio creation and stock selection aims to ensure that your PMS investment will recover and even exceed the previous market highs over time.
- If we feel that market prices are exceedingly high and no attractive ideas are available, we may keep a material part of the PMS funds in cash, liquid fixed income instruments or gold ETFs. This may provide some protection on the down side in the PMS invest.
How are you better than a mutual fund?
- Smaller PMS assets allow greater flexibility to invest in good smaller companies.
- A focused PMS portfolio offers greater potential to outperform the index.
- PMS has an aligned fee structure with no management fees.
- We work directly with clients, without agents or distributors.
- Our PMS portfolio has very low churn compared to mutual funds.
- Our portfolio management services (PMS funds total assets) are small so we have more flexibility and opportunities to invest in good smaller companies.
- Our portfolio management services (PMS services) have a more focused portfolio so we can outperform the index by a bigger margin if our decisions are good.
- Our Portfolio Management Scheme (PMS schemes) have a highly aligned fee structure. No management fees.
- In our PMS investment, we work directly with our clients. We do not work through agents or distributors who earn commissions.
- Mutual funds generally have higher portfolio churns. Our PMS investment portfolio churn is very low.
