Portfolio Management Services (PMS)

1. What is Portfolio Management Service (PMS)?
PMS is a personalized investment management service that focuses on creating and managing an investment portfolio tailored to individual client needs and objectives. It involves diversified investments in equities, fixed income instruments, and other asset classes.

2. Why should I consider using PMS?
PMS is ideal for individuals or institutions that lack the time, expertise, or resources to manage their investments effectively. Professional portfolio managers ensure that your investments are monitored, reviewed, and aligned with your financial goals.

3. What types of PMS are offered by NIC ASIA Capital Limited?
NIC ASIA Capital Limited offers the following services:

• Discretionary Portfolio Management Services
• Non-Discretionary Portfolio Management Services
• Advisory Services

Discretionary PMS

4. What is Discretionary Portfolio Management Service?
In discretionary PMS, the portfolio manager has full discretion to make investment decisions on behalf of the client, based on their agreed-upon investment objectives and risk tolerance.

5. What types of products are available under Discretionary PMS?
NIC ASIA Capital offers:

• Growth Fund PMS (High-risk, equity-focused)
• Balanced Value Fund (Moderate-risk, mix of equity and fixed income)
• Income Fund (Low-risk, focused on fixed income)
• Complete Bespoke Solution (Customized portfolios)

6. What is the minimum investment required for Discretionary PMS?
The minimum investment is NPR 300,000 for Growth Fund, Balanced Value Fund, and Income Fund. For a bespoke solution, the minimum investment is NPR 1,000,000.

7. What are the fees for Discretionary PMS?

The fees depend on the portfolio size and product type.

• Annual Asset Management Fee: Ranges from 0.75% to 2%.
• Performance Fee: Ranges from 6% to 20% above the hurdle rate.
• Hurdle Rate: 7% to 10%
• Exit Fee: 1% for premature exits.

8. What is the lock-in period for Discretionary PMS?
The lock-in period varies depending on the product:

• Growth Fund PMS: 3 years.
• Balanced Value Fund: 3 years.
• Income Fund: 3 years.
• Bespoke Solution: 2 to 5 years (as per agreement).

9. Can I withdraw my profit before the lock-in period ends?
Profit withdrawal is allowed at the end of the calendar year, provided the portfolio has been managed for more than 1 year.

Non-Discretionary PMS

10. What is Non-Discretionary Portfolio Management Service?
In Non-Discretionary PMS, the portfolio manager provides investment advice, but the client retains full control and discretion over investment decisions.

11. What is the minimum investment for Non-Discretionary PMS?
The minimum investment is NPR 300,000.

12. What are the fees for Non-Discretionary PMS?

• Annual Asset Management Fee:
  • Up to 50 Lakh: 2.5%
  • Upto 1 Crore to : 2%
  • More Than 1 Crore: Negotiable
• Exit Fee: 1% for premature exits.
• Lockin Period : 3 Years

13. Can I withdraw my profit at any time?
Yes, profit withdrawal is allowed at any time as per the client's request.

Corporate Advisory Services

14. What services are included in  Advisory?
Corporate advisory services include:

• Equity and fixed income asset management.
• Investment policy consultation.
• Company valuations.
• Due diligence audits.
• Asset allocation strategies.
• Customized investment solutions.

15. How are the fees for Advisory Services determined?
The fees are negotiable and depend on the scope and nature of the service.

Investment Objectives and Risk

16. What are the objectives of Growth Fund PMS?
The Growth Fund aims to provide long-term capital growth through an equity-focused portfolio. It is suitable for aggressive investors with high-risk tolerance.

17. Who is the Balanced Value Fund suitable for?
The Balanced Value Fund is designed for moderate-risk investors looking for a mix of equity and fixed income instruments.

18. What is the focus of the Income Fund?
The Income Fund focuses on generating stable returns through investments in fixed income securities. It is ideal for retired individuals or institutions requiring regular income.

19. What is the target return for each product?

• Growth Fund PMS: 15–20%
• Balanced Value Fund: 10–15%
• Income Fund: 7–10%

Fees and Payment

20. How is the annual management fee paid?
The annual management fee is paid upfront at the time of registration and annually in advance thereafter. This fee is non-refundable.

21. How is the performance fee calculated?
The performance fee is levied on portfolio growth exceeding the stipulated hurdle rate, calculated on a pro-rata basis if the client exits prematurely.

22. Are there any other charges?
Yes, other charges incidental to transactions (e.g., brokerage, taxes, and account maintenance) are borne by the client on an actual cost basis.

Tax and Compliance

23. Are the fees inclusive of taxes?
No, all fees are exclusive of taxes. Applicable taxes will be levied as per prevailing income tax laws.

24. Can the fees and product slabs change?
Yes, fees and slabs are reviewed annually and may be revised to stay competitive. Changes require approval from the Board of Directors of NIC ASIA Capital Limited.

Operations and Withdrawal

25. Can I terminate the service?
Yes, termination of the service is as per the terms and conditions stipulated in the agreement between the portfolio manager and the client.

26. How is profit withdrawal handled?
Profit withdrawal terms depend on the product. For most discretionary services, withdrawal is allowed annually after one year of portfolio management.