Transcript Document

PORTFOLIO
ADVISORY
SERVICE
for NRI Clients
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CONTENTS

Portfolio Management Service
• PNVF Credentials
• Portfolio Advisory Products
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ABOUT US
 Promoted in May 1990, PN Vijay Financial
Services (P) Ltd (PNVF) is a SEBI-Authorized
Portfolio Manager.
 P N Vijay, the promoter of PNVF is a well
known Investment Analyst with an experience of
over 30 years in the financial sector.
 Started career at SBI, moved on to ANZ
Grindlays, and served as VP and Country Head,
Merchant Banking at Citibank.
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PNVF Credentials
 Corporate Office in New Delhi and a network of
three branches at Noida,Greater Kailash II and
Gurgaon.
 Qualified professionals well versed in latest
techniques of investment analysis.
 Latest communication and automation systems
with access to real time data.
 Close links with Corporates and leading market
players.
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Our Wealth Advisory Service
We provide advisory on the client’s overall wealth
portfolio
• Portfolio Advisory Service – Equity
• Portfolio Advisory Service – Mutual Funds
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Portfolio Advisory Service Equity
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Discretionary Portfolio Advisory Service
For Corporates and High Net-worth Individuals
Investment in Stocks
Minimum Investible funds (stock/cash): Rs.25 lacs
Customized Portfolio designed after ascertaining the
risk return profile of the client
 Investment horizon of one year and above
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Procedure for PAS-Equity
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A Client enters into Portfolio Advisory
Agreement With PNVF
Authorizes PNVF to manage his broking
account with the broker
Opens Broking Account With the broker
Opens NRE Account and NRE PIS with
Reporting Bank .
Authorizes bank to honor claims raised by the
broker and credit the account with cheques
received from the broker
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Our Designated Broker
- India Infoline Securities
 India Infoline Securities is a ten years old
firm started by a group of Finance
Professionals
 Full service brokerage house with NSE ,BSE
membership, depository service with NSDL
and commodity broking.
 The company recently came out with its
public issue and is listed on NSE
 (www.indiainfoline.com)
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Reporting Bank
- UTI Bank Ltd.
 UTI Bank was the first of the new private banks
to have begun operations in 1994, after the India
allowed new private banks to be established.
 The Bank was promoted by Unit Trust of India
 The Bank today is capitalized to the extent of Rs.
278.12 Crores with the public holding (other than
promoters) at 56.18 %
 Bank has necessary license to enable NRI to
invest and disinvest in shares of Companies in
India, on repatriation or non-repatriation basis
through its wide network of branches throughout
the country.
(www.utibank.com)
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Documentation
P N Vijay Financial Services
 Client will enter into Portfolio Advisory
Agreement with us.
 Client will provide his personal details and
his investment objectives w.r.t risk and
return.
 Client will provide his identity proof as well
as his address proof.
 Client will sign authority letter to execute
trade in his broking account maintained with
our designated broker.
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Continued………..
Indiainfoline Securities Ltd.
– Client will fill Broker Client Agreement Form
– Client will provide following documents;
copy of RBI approval (to be provided by UTI
Bank), Permanent Account Number
(PAN),his Indian Address and Foreign
Address with proof, Copy of passport, Bank
verification letter indicating type of accounts
as NRI/NRE/NRO, PoA duly notarised.
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Continues………..
UTI Bank
 Client opens Normal NRE SB A/C and
NRE PIS..
 Client will provide attested copy of passport
/visa.
 Client will give authority to honor claims
raised by the broker and credit the account
with payment form the broker provided such
debits and credits are supported by the
contract note duly signed by the authorized
signatory.
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Continues………..
UTI Bank
 Bank will provide broker a copy of PIS
permission granted by RBI.
 Bank will issue bank verification letter
indicating NRE account held with them.
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Working of Scheme
 NRE SB A/C and NRE account is opened with
reporting bank.
 Bank issues PIS permission to client on behalf of
RBI.
 Broking account is opened with the our
designated broker.
 Client remits the corpus to be invested in his
NRE account.
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Continued….
 PNVF constructs customized portfolio for client.
 PNVF invest on client’s behalf through the
designated broker.
 Broker will provide duly signed contract note to
the reporting bank at the end of the day.
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Continued….
 Bank will report NRI investment to RBI.
 Bank will manage transfer of funds for buy/sale
transaction.
 Bank will compute capital gain @ 10.2% and
issue TDS certificate to investor at the end of the
financial year.
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Various Charges
Fees to PNVF
 Option 1
The advisory fees payable would be 2 percent (of the
value of the portfolio) per annum. (The minimum
portfolio size under this service is Rs 25 lakhs).
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Various Charges
Fees to PNVF
 Option 2
PNVF will receive as share profit 30% of the
profits in excess of 10% per annum. Profits would
mean the sum of realized gains, unrealized gains
and dividends received. Service tax will be borne by
the client.
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Broker Charges
 Trading Account and DP Opening Charges-Rs555
 Broker will charge brokerage @ 0.5% per
transaction.
 Transferring shares from client DP to broker’s pool
account –Rs 8
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Bank Charges
Account opening charges
Nil
Annual Maintenance Fees
Rs. 1000/-
Purchase Transaction
Rs.100/scrip
per
Sale Transaction
Rs.100/scrip
per
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Client Reporting
PNVF has got a very effective and prompt system of
reporting in place. Our monthly report contains:
 Account performance summarizing returns
generated in the client’s portfolio.
 Composition and the value of the portfolioDescription of security, number of securities,
value of each security held in the portfolio.
 Realised and unrealised income.
 Transaction statement.
Our Relationship Manager are constantly in touch with
the clients to understand their needs and get their
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feedback.
Continued……
– Client will receive all confirmation of the
trades done in his broking account through email.
– Client can view and monitor his holdings and
broking account
through our broker’s
website.
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Taxation- Equity
 Dividend income is tax free in the hands of
investor.
 Short term capital gains is taxed at 10% .
 Long term capital gains attract no tax.
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Portfolio Advisory
Services
Mutual Funds
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Mutual Fund Environment
 Mutual Funds have been a popular investment
choice for individuals and institutions in the last
decade.
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Mutual Fund Choices
Wide range of products to choose from including
 Equity Mutual Funds-Diversified, Sector specific,
Tax saving and Index.
 Debt Mutual Funds-Income , Short term, Medium
term , Floating rate,Gilt fund.
 Hybrid Funds
-Equity oriented- Balanced fund.
-Debt oriented -Monthly Income plan.
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Risk In Mutual Funds
 Equity Funds
- uncertainty in the stock market
- competence of fund managers
 Debt Funds
-movements in interest rates
-inflation and the state of the economy
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Our Mutual Fund Product
PNVF now offers a product that will manage
and monitor your mutual fund portfolio
minimizing risk and maximizing returns.
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How It Works-Initial Stage
 You define your investment goals
 We will design a mutual fund portfolio based on
your investment objectives.
 We will implement the agreed upon strategy to
optimize your portfolio returns.
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How It Works-Continuous basis
 Continuous monitoring of the performance and
progress of portfolio.
 Regular monthly reporting.
 Refine strategy if required and portfolio
rebalancing.
 Prompt implementation of the strategy so your
money does not stay idle.
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Procedures
 NRI will open an NRE account with the funds
repatriated into India.
 These funds will be utilized for mutual fund
investment in India.
 P.N.Vijay Financial Services will decide the strategy
for investments.
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Continued….
Two options available
-Client can give mandate letter making
Mr
P.N.Vijay mandate holder to implement strategy
without the loss of time and client intervention.
- Client can make one of his known person mandate
holder who can execute documents and sign
cheques on his behalf.
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Tax Implications
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Debt Mutual Funds
The dividend is fully tax exempt in the hands of
investor.
Dividend distribution tax at the rate of 14.02%
is deducted by Mutual Fund Houses.
Lower Tax Regime From 2003-04- TDS
applicable on Long term Capital Gain is 22.44%.
TDS applicable on Short term Capital Gain is
33.44%.
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Tax Implications
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Equity Mutual Funds
In equity oriented schemes the benefits are
higher.
The dividend is fully tax exempt in the
hands of investor.
So are the long term capital gains. No TDS
Only short term capital gains tax is
applicable at 11.22% as TDS.
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We understand that your money matters to you, It
does for us too. We are committed to do our utmost
so that you get the best out of it.
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THANK YOU
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