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HNI Investment

Portfolio Management Services (PMS) & Alternative Investment Funds (AIF Category III)

A Smart Choice for High-Net-Worth Investors (HNIs) in India

High Net-Worth Individuals (HNIs) in India often seek sophisticated investment opportunities that align with their financial goals and risk profiles. Portfolio Management Services (PMS) emerge as a compelling option for discerning HNI investment in India, offering tailored investment solutions managed by seasoned professionals. Additionally, Alternative Investment Funds (AIF) Category III serve as another investment avenue for HNIs looking for diversified and superior-return opportunities.

An Alternative Investment Fund (AIF) is a privately pooled investment vehicle for High Net-Worth Individuals (HNIs) and institutional investors, including both Indian and Non-Resident participants. Funds are pooled in a trust and invested based on a defined asset class and strategy, offering investors access to exclusive investment opportunities beyond traditional financial instruments.

Why Should High-Net-Worth Investors (HNIs) opt for PMS and AIF Category III?

Expertise and Professional Management:

HNI investment in PMS and AIF Category III benefits from the expertise of seasoned fund managers who have a deep understanding of financial markets and investment trends. These professionals employ rigorous research and analysis to make informed investment decisions, aiming to outperform market benchmarks and optimize portfolio performance.

Diversification

A PMS typically offers HNIs the ability to diversify their investments across asset classes, sectors, and geographies, which helps mitigate risks associated with concentrated investments.
Similarly, Shepherd’s Hill’s AIF Category III Fund uses our proprietary methods to invest in public markets, including listed securities enabling HNIs to enhance portfolio stability and growth. Shepherd’s Hill’s PMS is an excellent option for High Net-Worth Individuals looking to optimize returns through a well-diversified investment approach.

Transparency and Accountability

HNI investment through PMS and AIF Category III ensures transparency and professional accountability over investments via regular reporting and updates provided by fund managers. This allows investors to stay well-informed about portfolio performance, asset allocation, and market factors.

Regulatory Framework

Portfolio Management Services (PMS) in India operate under the regulatory framework of SEBI (Securities and Exchange Board of India), ensuring investor protection and adherence to best practices in portfolio management. Similarly, AIF Category III is regulated by SEBI, to ensure compliance with investment guidelines and risk management norms.

For HNIs in India looking to optimize their investment returns while maintaining a disciplined approach to wealth management, both Portfolio Management Services and Alternative Investment Funds Category III represent robust choices. With their focus on customization, professional management, diversification, transparency, and regulatory compliance, these investment options cater effectively to the sophisticated needs of high-net-worth investors, making them preferred avenues for wealth creation and preservation.
Whether aiming for capital appreciation, income generation, or a combination of both, PMS and AIF Category III providers offer the expertise and resources necessary to navigate the complexities of today’s financial markets effectively. HNI investment in these avenues can thus be a strategic step towards achieving long-term financial objectives with confidence and peace of mind.

Frequently Asked Questions for HNI Investor

Find clear and concise answers to common questions about asset management, helping you make informed decisions with confidence.

What are the investment options available for HNIs?

HNIs have access to exclusive investment opportunities, including:

  • Portfolio Management Services (PMS)
  • Alternative Investment Funds (AIFs)

What is a PMS?

A PMS, or Portfolio Management Service, is a service which you can use to save and invest money. PMSes can be of many types and have many strategies. Typically, a PMS manager will manage a bank and demat account for our Non-Resident Indian (NRI) investors (in your name) through which you will be able to invest funds. PMSes are regulated entities and must have a license from the Securities and Exchange Board of India (SEBI).

What is an AIF?

An Alternative Investment Fund (AIF) is a privately pooled investment vehicle for High Net-Worth Individuals (HNIs) and institutional investors, including both Indian and foreign participants. Funds are pooled in a trust and invested based on a defined asset class and strategy.

Who is the Fund Manager of Shepherd's Hill PMS?

Mr. Rishi Gupta is the Fund Manager with over 20 years of capital market experience. A Stanford University graduate and former private equity professional, he has been investing in India since 2008. He has extensive experience working with CXOs and boards, assessing managerial competence, and analysing global market factors. He is personally involved in detailed research and regularly reviews the PMS portfolio to ensure proper positioning and balance.

Can I get a better / different fee structure?

The fee structure is carefully designed to be fair to clients. The reason the hurdle rate is 6% is because the management fee is 0%. If the management fee was 1 or 2% we could have kept the hurdle rate higher, but we believe the 0% management fee structure produces the best alignment of interests between our clients and us – like a true partnership.

Is there a specific net worth requirement to invest in PMS?

No, there is no specific net worth requirement. However, as per SEBI regulations, a minimum investment of INR 50 lakhs is required.

How are investments taxed?

Taxation depends on the type of investment:

  • PMS: Capital gains tax is liable in the hands of the investor.
  • AIFs: Category III AIFs are taxed at the fund level.

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