Financial Products, Insights

Investment avenues for residents and NRIs in Gift City

Title Cover Image Source: Wikipedia

GIFT City is a special economic zone (SEZ) with multiple services. It houses India’s first International Financial Services Centre (IFSC) and a Domestic Tariff Area (DTA). It also includes a residential zone for people to enjoy a high-quality lifestyle.

Currently, GIFT City is under development. The focus is on creating excellent infrastructure and sustainable planning. The IFSC aims to compete with global financial centers like London, Shanghai, New York, Hong Kong, Singapore, and Dubai.

The Indian government recognizes GIFT City as a model Smart City among the upcoming 100 smart cities. This recognition positions it as a future financial hub, offering numerous benefits to businesses and investors.

Major exchanges in GIFT City:
  • India INX:

The first international exchange in India, the India International Exchange (India INX), was inaugurated by Prime Minister Shri Narendra Modi in January 2017. India INX offers a wide range of financial products for trading, including equities, derivatives, debt securities, and currencies.

Image Source: IndNIX


Launched in July 2020, the NSE IFSC serves as a subsidiary of the National Stock Exchange of India (NSE) and provides trading opportunities in a wide range of financial products.

Source: NSEIX Presentation


Direct Stock Investing
  • Investors can buy foreign shares directly through the BSE IFSC (India INX) using the direct share buying facilitator route, while the NSE IFSC employs the depositary receipt (DR) route.
  • BSE IFSC enables investors to purchase foreign shares directly from over 130 stock exchanges in more than 31 countries. In contrast, NSE IFSC currently offers US stock investing options exclusively.
  • An Indian demat account (opened separately with an IFSC broker) will hold NSE US stock DRs, while a foreign custodian or broker will hold BSE IFSC stocks.
Taxation on US Stocks:
  • Tax from dividends: Flat 25%
  • Long-term capital gains (>24 months) are taxable at 20% plus applicable surcharge and fees.
  • STCG are taxed as per applicable income tax slab rates.
NSE IX International Exchange – Debt Securities Market

Interest on Long Term Bonds and Rupee Denominated Bonds listed only on a recognised stock exchange in IFSC has lower rate of 9% withholding tax on interest paid on debt securities. This makes debt investments attractive in IFSC.


A privately pooled fund, known as an AIF, combines capital from multiple investors to make investments that ultimately benefit those investors. NRIs can invest in AIFs listed in the IFSC and enjoy various tax benefits.

The Central Board of Direct Taxes has clarified that non-resident investors will not face taxation on income generated from offshore investments channeled through an Alternate Investment Fund established within an International Financial Services Centre. Foreign investors are exempt from the requirement of obtaining a PAN (Permanent Account Number) and filing Tax Returns.

Any income in the hands of the non-resident investor from off-shore investments routed through the Category I or Category II are not taxed in India. But Category III AIFs are subject to fund level taxation. 

The IFSCA currently has approximately 63 AIFs, and some of them are displayed above.



GIFT City, provides investors with cost advantages, including lower management and operational costs, making it an attractive option compared to hubs like Mauritius, Singapore, Dubai etc. GIFT City is a rapidly developing financial hub that offers a variety of investment opportunities for residents and NRIs alike. With its world-class infrastructure, tax benefits, and wide range of financial products, GIFT City is well-positioned to become a major player in the global financial landscape.

To know more about investing in the Gift city, register your details below:

Read More About Which NRI account is right for you: NRE, NRO, or FCNR? A simple guide.

Financial Products, Insights

Which NRI account is right for you: NRE, NRO, or FCNR? A simple guide.

An NRI (Non-Resident Indian) is a person who lives outside of India for more than 181 days. People who live outside India usually have different banking and investment needs because they earn and save money in different currencies from other countries. NRIs have three types of bank accounts to choose from in India: NRE, NRO, and FCNR. and these accounts can be opened at almost every major bank and financial organization in India. In this article, we will delve into the details of these accounts to help you understand their features, advantages, and disadvantages, making it easier for you to decide which one suits your needs best.

Image Source: Freepik

NRO Account (Non – Resident Ordinary)
  • This account is for NRIs who have some form of income source in India. Example: Rental income from property, dividends, equity returns etc.
  • You can deposit funds in this account using either Indian or foreign currencies, but you can only withdraw them in INR.
  • One disadvantage is that TDS will be applied to the accrued interest in this account.
  • This account is available in various types, including savings, current, fixed deposit accounts etc.
  • You can repatriate up to $1 million from it each fiscal year.
  • Also, you can have a joint account with any of your family members in India and you can can also add nominee for your account.
  • You can avail a loan with this account in Indian currency.
Who should open this account:

This account is good if you plan to use your money only in India. Individuals who have attained NRI status should inform the bank and convert their savings account into an NRO account. Similarly, NRIs who plan to settle back in India should convert their NRO account into a regular savings account.

F&O Trading:
  • Participation in F&O requires an NRO saving bank account and a Custodial account, often with a minimum balance of 25 lakhs.
  • Profits earned are subject to a 30% tax imposed by the income tax department.
  • Also, profits made through this scheme cannot be repatriated.
NRE Account (Non – Resident External)
  • This account is for NRI’s income sources outside India.
  • So, the NRI can deposit their foreign currency earning into the NRE account, but it will be denominated in rupees.
  • Interest income is not taxable and the money in the account is fully repatriatable.
  • Similar to the NRO account, you can open a joint NRE account and also add a nominee to the account.
  • Rupee depreciation can pose a disadvantage because the account denominates the money in INR.
  • You can avail a loan with this account in Indian currency.
Who should open this account:

This account is good if you plan to use your money both in India and in the country where you make money. It is generally recommended to open a NRI account as soon as one attains NRI status.

Steps to Invest in the Indian Secondary Market


Image Source: Freepik

  • NRIs can invest in shares or convertible debentures of Indian companies under repatriation through a registered stockbroker on a recognized Indian stock exchange using the Portfolio Investment Scheme (PIS) Account.
  • To participate in PIS, NRIs must open an NRE (Repatriation basis) account with one Designated Bank, following RBI guidelines. This designated bank account should exclusively handle PIS-related transactions, such as buying or selling shares, without any involvement in non-trading activities.
FCRN Account: (Foreign Currency Non-Resident)

Image Source: Freepik

  • This account resembles a more advanced version of the NRE account.
  • It keeps your money in the currency in which you deposit it (USD, GBP, JPY, EURO, AUD, CAD etc. which are approved by RBI).
  •  Because the money is being held in those currencies, the risk of exchange rate fluctuations is eliminated.
  • However, this account only allows term deposits, which you can withdraw prematurely with a small penalty if needed.
  • You can avail a loan with this account in foreign currency, but with certain conditions.
Who should open this account:

This account is good if you make money in a different country and plan to use most of it outside India.

In general NRI accounts can be opened by:
  • NRIs, PIOs (Persons of Indian origin), and OCIs (Overseas Citizens of India) can open NRI bank accounts.
  • Individuals who are eligible under the India Citizen Act of 1955 due to their parents’ or grandparents’ Indian citizenship can also open such accounts.
  • Those officially deputed abroad by the Government of India or PSUs are eligible to open these accounts.
  • Individuals who have held an Indian passport at any point in time have the option to open such accounts.
  • Spouses of Indian citizens or PIOs (Persons of Indian Origin) have the privilege of opening these accounts.
  • Indian citizens settled abroad for work, studies, or business purposes have the opportunity to open NRI accounts.

To open know about NRI accounts and how to open them, mention your details below:


Read More: Golden Returns: Earn Interest and Capital Appreciation with Sovereign Gold Bonds

Financial Products, Insights

Golden Returns: Earn Interest and Capital Appreciation with Sovereign Gold Bonds

Sovereign Gold Bonds (SGBs) are government-issued securities that are denominated in grams of gold. As such, they provide a secure way to invest in gold, with the added benefit of offering potential capital gains alongside annual interest. Furthermore, SGBs also contribute to diversifying your investment portfolio.

Image Source: Zerodha

Key features:
  • Issued by RBI:

The Reserve Bank of India issues SGBs, ensuring a secure investment option.

  • Denominated in Grams:

These bonds use grams of gold to measure how much gold you have, so you can know exactly how much you own.

  • Fixed Interest Rate:

SGBs offer a steady 2.5% interest rate, providing stable income.

  • Tenor and Redemption:

SGBs have an eight-year tenor and permit premature redemption after the fifth year, exercisable on the interest payment date.

  • Redemption Options:

SGBs offer redemption in cash or physical gold, granting flexibility to investors.


SGB Issuance Dates:

SGBs are issued in tranches, and each tranche has a different maturity period.
The subscription period for the next tranche is between September 11 and September 15, 2023, and it will be issued on September 20.
Additionally, people who want to immediately purchase it can do so through the secondary market


Taxation of SGBs:
  • Interest Income:

Taxation of the 2.5% interest income aligns with the individual’s income tax slab, with no TDS applied.

  • Capital Gains:

When selling SGBs in the secondary market, capital gains taxes apply.
Sale within three years classify as Short-Term Capital Gains (STCG) and are taxed per the individual’s slab.
However, if you hold onto them beyond three years, it falls under Long-Term Capital Gains (LTCG), subject to a 20% rate with the added benefit of indexation.
Notably, it’s essential to remember that redeeming with the RBI after five years incurs no capital gains tax.

  • GST and STT:

Moreover, it’s worth mentioning that neither Goods and Services Tax (GST) nor Securities Transaction Tax (STT) apply to SGBs. This further enhances the tax efficiency for your investments.


Additional Information:
  • Minimum Investment: Accessible to a wide range of investors, the minimum investment in SGBs is just one gram of gold.
  • Maximum Investment: Investors may purchase up to 4 kg of gold per person per fiscal year through SGBs.
  • Interest Payment: SGBs pay interest semi-annually, ensuring regular income for investors.

Image Source: TRCapital




SGBs are a safe and secure way to invest in gold. Moreover, they offer the potential for capital gains, and they are also an excellent way to diversify your investment portfolio. Therefore, if you are looking for a way to invest in gold, SGBs are a good option to consider.

You can invest in Sovereign Gold Bonds with our partner, Zerodha.

You can signup with Zerodha here –> Sign up Here

Read more about Investment Avenues for NRIs 


Financial Products, Insights

Investment Avenues for NRIs -Part 2

In PART 1 we covered fixed income Investments and some of the Equity Solutions. In this article we will look at the rest of the equity solutions and some of the Alternative Investments.

Equity Solutions

3. Initial Public Offerings (IPOs)

Image Source: Freepik

NRIs can participate in IPOs of Indian companies, allowing them to purchase shares during the company’s initial listing on the stock exchange.


4. Pre-IPO shares

Image Source: Freepik

Obtaining shares of a company before it becomes publicly traded, typically in an over-the-counter manner.

Alternative investments

1. AIF

Alternative Investment Funds (AIFs) predominantly serve High Net Worth Individuals (HNIs) and Ultra High Net Worth Individuals (Ultra HNIs), with the goal of consistently outperforming both the index and mutual funds in India. Managed by SEBI-regulated fund managers renowned for their impressive track records, these funds are classified into three types:

Category I AIFs

Invest in startup/early stage ventures, social ventures, SMEs, infrastructure, etc.

Includes venture capital funds, SME Funds, social venture funds, infrastructure funds.

Category II AIFs

Not in Category I or III, no significant leverage or borrowing.

May include real estate funds, private equity funds, distressed asset funds.

Category III AIFs

Employ diverse/trading strategies, may use leverage through derivatives.

INR AIF Funds cover public equity, private equity, real estate, and fixed-income etc. requiring a 3-year lock-in and INR 1 Crore capital.

USD AIF Funds offer offshore opportunities, mainly open-ended from Singapore, Mauritius, and GIFT City, with a $100k minimum investment.

2. Portfolio Management Services

Personalized investment strategies managed by SEBI registered professionals in the client’s own trading account, generating market-beating profits. Four key variants of PMS are explained below:

Active Portfolio Management

Aims to beat the market through active decisions; high-risk, high-return; pricey fees; manager-dependent; volatile.

Passive Portfolio Management

Follows market indices; low-cost, steady gains; for long-term investors; risk of stagnation; lacks market-beating potential.

Discretionary Portfolio Management

Manager controls investments; expert-driven; no stress for clients; higher costs; loss if manager makes error.

Non-Discretionary Management

Clients decide, manager advises; control retained; risk of uninformed moves leading to significant losses; access to expert guidance.


3. REITS (Real Estate Investment Trust)

REITs are companies that own and manage real estate properties, distributing rental income to investors as dividends, allowing both big and small investors to benefit from real estate ownership and dividend income. Properties in REITs include data centers, healthcare units, and more.

4. Startup Investments:

Image Source: Freepik

Startup investing involves providing funds to new and promising companies at an early stage, aiming to support their growth and potentially earn high returns. Investors become part-owners and share in the startup’s success and challenges.

Investors can invest in startups from Pre-seed stage to Series B and beyond.


To sum up, these are the ways NRIs can invest to make money. Each way has its own risks and rewards, and NRIs can pick the one that matches what they want to achieve with their money.

Author: Kevin Jose

To invest in India, reach out to us here –> Contact US

Financial Products, Insights

Investment Avenues for NRIs -Part 1

Image Source: Freepik

For NRIs seeking to nurture their financial growth, a plethora of investment opportunities are available especially in India. India’s flourishing economy makes it an appealing destination for investments that align with its growth trajectory. The following diverse range of options empowers NRIs to actively participate in and benefit from India’s ongoing growth story.

Fixed Income Investments

1. NRI Fixed Deposits:

NRIs have the opportunity to invest in fixed deposits through three distinct accounts: NRE, NRO, and FCNR. It’s important to note that each of these accounts comes with its own set of benefits and drawbacks. This variety empowers NRIs to make informed decisions based on their individual preferences.

Account Type


NRE Savings Account & Fixed Deposit Account

NRE accounts are used to deposit or save foreign earnings in Indian currency. 

NRO Savings Account & Fixed Deposit Account

NRO accounts are used to manage and save Indian earnings that are made in Indian currency.

FCNR Fixed Deposit Account

FCNR accounts can be used to deposit or save foreign currency earnings in any of the currencies that the RBI has approved. 

2. Some of the other fixed income investment options are:

Government Bonds,
Corporate Bonds,
Money market instruments,
Debt Mutual Funds,
Pension Funds etc.


Equity Solutions

1. Direct Equity

NRIs can use a Portfolio Investment Scheme (PIS) to directly invest in the Indian stock market. This RBI-regulated requirement involves opening a PIS account with an authorized bank, serving as a link for stock transactions. This enables NRIs to trade shares of Indian companies on recognized exchanges while staying compliant with regulations and reporting. Indian Equity is subdivided as follows:

Sub Category

Market Cap

Associated Risk

Large Cap

Rs. 20,000 crores or above

Comparatively Low

Mid Cap

Rs 5,000 crore and less than Rs 20,000


Small Cap

Below Rs 5,000 crore


Image Source: Freepik

2. Mutual Funds

A mutual fund is like a big pot where many people put their money together. This money is used to buy different things like stocks and bonds. This helps people who don’t want to pick individual stocks or bonds, but still want their money to grow. Mutual funds are of various types:

Structure of Mutual Funds

Open-ended funds

These funds allow buying or selling units anytime.

Close-ended funds

These funds cab be bought and sold during a specific period only.

Asset Classes

Equity funds

Large-Cap, Mid-Cap, Small-Cap company shares etc.

Hybrid funds

Invest in both debt and equity.

Solution-oriented funds

For specific goals like education or retirement.

Other funds

Index funds, Fund of funds etc.

Investment Goals

Tax-saving Funds (ELSS)

Invest in company securities, eligible for tax deductions.

Capital protection funds

Partly invest in fixed income, partly in equities.

Growth funds

Invest in high-performing stocks for capital appreciation.

Liquidity-based funds

Ultra-short-term and liquid funds, are ideal for short-term goals.

Learn more about other Investment Avenues in Part -2

Financial Products, Insights

India focused USD funds: Maximize Returns, Minimize Taxes

The Indian Investment Landscape

Have you thought about investing in India? It’s not just a land of rich culture and history. In fact, India offers a booming market and a young, vibrant population of 1.3 billion. Plus, it’s strategically located between the Middle East and Southeast Asia. The economy is growing fast. Also, there’s a highly skilled workforce, especially in IT and engineering. So, it’s easy to see why India is quickly becoming a top pick for global investors.



Why Invest in India now?

  • India is a bright spot for investment. Firstly, the tech industry is set to grow big.
  • Additionally, strong government support is fueling a startup wave. As a result, new companies are sprouting up all over. For instance, Bangalore is becoming India’s Silicon Valley, attracting tech talent worldwide.
  • Moreover, the government has plans to expand fast internet to rural areas. Consequently, this move is opening new doors for digital investments.
  • Meanwhile, the healthcare market is rapidly growing, driven by a health-conscious public.
  • Lastly, major projects, like the ‘Smart Cities Mission,’ stand ready for investors, and these efforts are actively shaping India’s cities for the future.


Feeder funds vs Direct funds

Feeder Funds offer a convenient way to invest in a larger ‘master’ fund based in India, providing a simplified entry point into Indian assets.

Direct Funds, denominated in USD(NAV), allow direct investment in a variety of assets like equities, bonds, and alternatives such as real estate. These funds offer more control and choice for investors as they are mostly open ended funds with a choice to buy and exit at NAV.

For both Non-Resident Indians (NRIs) and foreign investors, these options offer unique avenues for diversification allowing them to invest in one of the world’s fastest-growing economies

The following is a list of India-focused USD funds, but it is not an exhaustive list. There are many other funds available, and investors should do their own research before investing.


These funds generally follow a monthly subscription model and the units can be redeemed at market price.



Taxation Policy for Foreign Investors in India
Foreign investors in India generally face taxes only in their home country, thanks to India’s Double Taxation Avoidance Agreements (DTAAs) with over 90 countries.

UAE Nationals and Their Unique Tax Benefits
For our friends in the UAE, the deal is even sweeter. A special treaty allows profits earned in India to flow back to the UAE tax-free. It’s a win-win!

Understanding the Double Taxation Avoidance Agreement (DTAA)
DTAAs are investor friendly, preventing double taxation and ensuring favorable tax rates on income earned in India.


Conclusion: Are You Ready to Invest in India?

India stands as a beacon of opportunity, with a market that is both welcoming and teeming with potential. From its rich, diverse culture to its array of investment prospects, this nation is more than ready for investors looking to make a significant impact. For those eager to embark on this promising journey, expert guidance is readily available.


To know more about Investing in India, reach out to us below

Financial Products, Insights

Fund Review: Rangoli India Fund-Series A

Fund Review: Rangoli India Fund-Series A


The Rangoli India Fund, a sub-class under the K India Opportunities Fund Limited, targets long-term capital growth by investing in equity and equity-linked securities of Indian companies listed on Indian stock exchanges. The fund is managed by Kotak Mahindra (International) Ltd, Mauritius, with advisory services provided by Unifi Investment Management LLP, Gift City, India.




Investment Objective & Strategy:

  • The fund follows a concentrated, long-only, flexi-cap, sector-agnostic strategy in listed Indian equities, anchored in the GARP (Growth at a Reasonable Price) principle, focusing on 15-20 exceptional businesses with a strong growth bias.
  • This fund aims to expose its portfolio to the underlying drivers of India’s growth, including demographic factors, productivity gains, and public policy initiatives aimed at unlocking productivity.
  • The funds invest in businesses led by exceptional entrepreneurs with unimpeachable integrity and industry-leading business acumen, focusing on non-speculative and inherently capital efficient business models.
  • The fund’s valuation principles center on four critical metrics for minority investors: governance, sustainability of earnings growth, capital efficiency, and debt burden, aiming to find quality businesses at fair valuations.



Portfolio Breakup




Historical Performance:


                          Data as on September 30, 2023



Fee Structure:



The Rangoli India Fund is poised to outperform due to its strategic focus on high-quality, growth-oriented businesses, its exposure to the key drivers of India’s economic growth, and its disciplined adherence to critical valuation metrics. This unique approach allows the fund to capitalize on the diverse opportunities in the Indian equity market, potentially delivering superior long-term returns.

If you want to explore PMS, please reach out to us.

Read more about PMS Review: Sameeksha Capital Equity Fund 

Financial Products, Insights

PMS Review: Sameeksha Capital Equity Fund


Sameeksha Capital’s fund invests in Indian companies with growth potential across different market sizes. Their approach involves choosing companies with strong business models and shareholder-focused management to deliver good returns. Investment strategy aims to deliver attractive risk-adjusted returns while safeguarding against permanent capital loss, making it a viable option for investors seeking superior long-term performance.

Data Source:

Fund Manager: Mr. Bhavin Shah

  • Highly awarded professional with a decade-long number one ranking by the Global Institutional Investors.
  • He has as over twenty years of experience and has led in building top-ranked Institutional Equity franchises at JP Morgan, Credit Suisse, and Equirus.
  • Bhavin established Sameeksha Capital to manage his personal savings and provide others the opportunity to benefit from his expertise.
  • Bhavin has appeared on various business TV channels and magazines to share his views on equities.
  • He uses a 140-point checklist and a rules-based investment approach to identify good investment opportunities.

Investment Strategy:

Data Source:

Historical Performance

Data Source:

Reduced Risk, Enhanced Returns:

  • The portfolio has Beta of 0.9.
    This means that the portfolio is less volatile that the index. For example, if the value if index drops by 10%, then the portfolio will only drop by 9% offering a level of stability and reduced risk.
  • Sameeksha PMS has delivered an annualized alpha of 5.6%.(from inception)
    It means that the PMS fund has outperformed its benchmark index by 5.6% on an average annual basis. For example if the index has delivered 12% on average basis, then the fund delivers 17.6% (12+5.6%) on average. 

This shows that the fund delivers better returns than the index with lesser risk.

Fee Structure:

Variable Fee
AMC : 0.50% or 0.80% or 1.20%
Hurdle : 3% or 7% or 10%
Profit Sharing : 20% Profit Sharing Above Hurdle

Exit Load
1st year – 3%
2nd year – 1%
3rd year – 0%


Sameeksha Capital’s fund, led by Mr. Bhavin Shah, offers a growth-focused investment strategy with reduced risk, delivering enhanced returns making it an appealing choice for investors seeking superior long-term performance.

Disclaimer: This research is for informational purposes only and does not constitute investment advice. Please do your own due diligence and consult your financial advisor before making any investments.

If you want to explore PMS, please reach out to us.

Read More about Financial Products: Fund Review: Rangoli India Fund – Series A

Financial Products

Portfolio Management Services: Grow your wealth with the help of experts


  • Portfolio Management Services (PMS) are personalized investment products designed to meet the unique needs and objectives of investors.
  • Managed by experienced professionals who conduct extensive research and evaluate securities.
  • PMS is popular among high-net-worth individuals (HNIs) due to its ability to optimize returns through investments in equity, commodities, and other assets.

Image Source: Taurus Group


Minimum Investment Requirement:

  • The minimum investment requirement to invest in PMS in India is Rs.50 lakhs.
  • This was increased from Rs. 25 lakhs in November 2019 by the Securities and Exchange Board of India (SEBI).
  • Also, the portfolio manager must have assets worth at least Rs. 5 crores in order to be eligible to manage PMS portfolios.


Types of PMS:

  • Discretionary PMS gives the portfolio manager full discretion to make investment decisions on your behalf. This means that you do not have to be involved in the day-to-day management of your portfolio.
  • Non-discretionary PMS gives you more control over your portfolio. The portfolio manager will provide you with investment recommendations, but you will have the final say on whether or not to make a trade.


PMS Fee/Charges: (Varies based on the type of fund)

  • Management fee: This is the most common fee charged by PMS providers and is calculated as a percentage of the total assets under management (AUM). It is typically between 1% and 2.5% of the AUM.
  • Performance fee: This fee is charged only if the PMS scheme generates positive returns. The performance fee is typically between 10% and 20% of the profits generated.
  • Entry load: Some PMS providers may charge an entry load, which is a one-time fee that is charged when you invest in a PMS scheme. The entry load is typically between 0% and 2% of the investment amount.
  • Exit load: Some PMS providers may charge an exit load, which is a fee that is charged when you exit a PMS scheme. The exit load is typically between 0% and 2% of the investment amount.


Benefits of using PMS:

  • Expert guidance: PMS providers have a team of experienced investment professionals who can help you develop an investment strategy that is right for you.
  • Customized solutions: PMS providers can create a customized investment solution that meets your specific needs and objectives.
  • Professional management: PMS providers manage your portfolio on a full-time basis, so you don’t have to worry about the day-to-day trading.
  • Transparency: PMS providers are required to provide you with regular updates on the performance of your portfolio.


Advantages of PMS over mutual funds:

  • More Personalized Service: PMS providers can provide more personalized service than mutual funds. This is because PMS providers have a smaller number of clients and can tailor their investment strategy to each client’s individual needs.
  • More Flexibility: PMS providers have more flexibility in the types of investments they can make. This allows them to take more risks and potentially generate higher returns.


Criteria to choose a PMS provider:

  • Experience: Look for a PMS provider with a team of experienced investment professionals.
  • Track record: Research the track record of the PMS provider to see how their portfolios have performed in the past.
  • Fees: Compare the fees of different PMS providers to find the one that best fits your budget.
  • Services: Consider the services that are offered by different PMS providers. Some providers may offer additional services, such as tax planning or estate planning.



  • Portfolio Management Services (PMS) in India offer personalized investment solutions tailored to meet the unique needs of investors.
  • PMS attracts serious investors with its effective risk management, transparency, and expert guidance.
  • By opting for PMS, investors can benefit from professional portfolio management and work towards achieving their financial goals with more transparency.

If you want to explore PMS, please reach out to us.

Financial Products

Equity Mutual Funds – How to evaluate, compare and pick ?

Equity mutual funds are investment vehicles that pool money from multiple investors to invest predominantly in stocks or equities of various companies. They offer investors the opportunity to participate in the potential returns and growth of the stock market, managed by professional fund managers.

Investing in equity mutual funds can be an exciting way to grow your money over time. However, before you dive in, it’s crucial to familiarize yourself with some important terms that will help you make informed investment decisions.

Formulae mention in this article is only for the purpose of understanding and it is not necessary for an investor to remember these formulae.


Beta is a measure of risk that tells us how much a mutual fund’s returns typically move in relation to the overall market. The formula to calculate beta is:

Beta = Covariance(Fund Returns, Market Returns) / Variance(Market Returns)

A beta less than 1 indicates that the fund may be less volatile than the market, which implies lower risk. A beta greater than 1 suggests the fund could be more volatile, indicating higher risk. In general, a lower beta is considered better for conservative investors, while a higher beta may be suitable for those seeking higher returns at a higher risk.



Alpha measures a mutual fund’s ability to outperform its benchmark index, considering the risks taken by the fund manager. A positive alpha suggests that the fund has performed better than expected, while a negative alpha means the fund underperformed. A higher alpha is generally considered better.

Example: Fund B has generated an alpha of 2%. This implies that the fund has outperformed its benchmark index by 2% after adjusting for the risk it took. Positive alpha indicates the fund manager’s skill in generating excess returns.


Standard Deviation

Standard deviation shows how much a mutual fund’s returns have varied from its average return over time. It measures the fund’s volatility. A higher standard deviation indicates greater volatility, while a lower standard deviation suggests more stable returns. Lower standard deviation is generally preferred for conservative investors.

Comparing standard deviation with the industry benchmark would give a better idea about the volatility of the particular fund.


Sharpe Ratio

The Sharpe ratio assesses the risk-adjusted returns of a mutual fund. It measures the excess return earned per unit of risk taken. The formula to calculate Sharpe ratio is:

Sharpe Ratio = (Fund’s Return – Risk-Free Rate) / Standard Deviation of Fund’s Returns

(90-day Treasury bill rate is taken as risk-free rate)

A higher Sharpe ratio indicates better risk-adjusted returns. Therefore, a higher Sharpe ratio is generally preferred.


Capture Ratio

It is metric to evaluate how well the fund captures both upside and downside returns. Comparing the fund’s capture ratio with that of its category provides insights into its relative performance in different market conditions.

Example: Fund X has an upside capture ratio of 99, indicating that it captures 99% of the positive returns of the benchmark index. Its downside capture ratio is 119, implying that it captures 119% of the negative returns of the benchmark. A lower downside capture ratio is generally preferred as it means the fund has managed to avoid a significant portion of the benchmark’s losses during market downturns. Ideally, investors seek a mutual fund with a capture ratio close to or above 100% for positive returns and below 100% for negative returns, signifying outperformance during upward movements and minimized losses during downward movements.


Expense Ratio

The expense ratio represents the annual fees charged by the mutual fund company for managing the fund. It is expressed as a percentage of the fund’s assets. A lower expense ratio is generally better for investors as it means lower costs.

Note: Expense ratio is deducted from the total investment, not just the profits.

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Rolling Returns

Rolling returns calculate investment returns over specific periods, like one, three, or five years, continuously moving forward. They give a comprehensive perspective on a mutual fund’s performance by considering various holding periods. By analyzing rolling returns, investors can evaluate a fund’s consistency and stability over time, filtering out short-term fluctuations.

Rolling returns are a more useful metric of investment performance than CAGR with respect to mutual funds. This is because mutual funds are often subject to significant volatility, and CAGR can be misleading in these cases. Rolling returns can help to smooth out the volatility and provide a more accurate picture of the fund’s performance over time.


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