Category talk:Investment management

Fixed income returns in India set to surge in 2023, prompting higher investments

Indian investors may rebalance their portfolios this year to incorporate more debt assets in anticipation of at least a 30% increase in returns beginning in 2022.

Last year, debt investments barely increased in return due to significant volatility caused by the Ukraine crisis, rapid rate tightening by the US Federal Reserve and the Reserve Bank of India, and severe global inflation.

Meanwhile, when the pandemic caused substantial rate reduction, returns stagnated in 2020 and 2021 with low yields.

As corporate valuations have climbed in the previous two years, the opportunity cost of investing in equities has increased, resulting in more cash flows to debt markets.

Over the last three years, equity markets, notably in India, have done extraordinarily well as domestic investors plowed funds into stocks in the face of marginal or even negative returns from fixed-income assets due to low rates and high inflation. Thegainers21 (talk) 06:47, 20 January 2023 (UTC)

Sebi allows AMCs to offer advisory services to all FPIs at the IFSC.

Sebi, the market regulator, approved asset management companies (AMCs) to provide management and consulting services to all FPIs operating from International Financial Services Centres (IFSCs). This is subject to certain criteria, such that such Foreign Portfolio Investors (FPI) will be permitted to invest in mutual fund schemes other than those classified as "thematic," according to a circular issued by the Securities and Exchange Board of India (Sebi).

FPIs will not be allowed to take contra-positions in equity and equity derivative instruments listed on recognized stock exchanges in India for six months from the date of purchase or sale of such securities, it added.

According to Sebi, it has been decided that AMCs may also provide management and advisory services to FPIs operating from IFSC and regulated by the International Financial Services Centres Authority (IFSCA) that do not fall under the categories of FPIs specified by Sebi in its circular issued in December 2019. Thegainers21 (talk) 09:54, 23 January 2023 (UTC)

Importance of Portfolio Management Services (PMS) in Tax Management

How do you calculate PMS's tax liability?

Since SEBI PMS guidelines were established in 1993, portfolio management services (PMS) have flourished in India. PMS taxes is an integral part of the PMS system. Now, investors care about PMS taxes because they want to know what their returns will be after taxes. In this article, we explore the details of PMS taxes in India, including how and why PMS is taxed. When compared to mutual funds, PMS are taxed substantially differently because they are simply considered as the PMS buying and selling assets on your behalf. Because of this, there is a need for a deeper familiarity with how PMS is taxed.

Impact of PMS on Taxes

First, it's important to distinguish between a PMS and a regular mutual fund before delving into the tax implications of the former. The main distinctions are as follows.

Unlike mutual funds, where investors own shares of stock indirectly through units, in portfolio management services investors possess shares directly.

When it comes to investing, mutual funds take a cookie-cutter approach that is determined by the scheme's overall goals. When it comes to PMS, it depends on the investor's comfort level with risk and their goals.

The risk of PMS being confined is lower than for other conditions. Mutual funds, for instance, can't invest more than 10% of their total assets in any one stock. As far as we know, PMS has no upper limit. 202.148.63.25 (talk) 09:34, 1 February 2023 (UTC)