Taxpayers must be taxed on real taxable incomes, not artificially inflated ones
Many investors, high net-worth individuals in particular, invest in the stock markets or debt markets through portfolio management services (PMS). The objective of investing through a PMS is to take advantage of the expertise of the portfolio manager and get a better rate of return on the portfolio. All portfolio managers charge a flat fee as a percentage of the value of the portfolio (generally at least 1%), while some also charge an incentive fee linked to the rate of return that an investor gets. To illustrate, the incentive fee may be 20% of the profits made by the investor, exceeding an 8% per annum return. For an investor who has invested ₹50 lakh in a PMS, the portfolio management fee (PM fee) would be at least ₹50,000 per annum, a sizeable amount in comparison with the return on the portfolio.
Recommended For You
Select your Category
Internet Not Available
Wait for it…
Log in to our website to save your bookmarks. It'll just take a moment.