Providing Portfolio Management Services (Non-Registered)

[Nifty Trader]

Any views??

Hi Rahul. Drop me a PM. Would like to exchange notes with you.

 

[rocky9281]

Since this thread is about starting your own PMS firm,here goes my 2 (or may be more ) cents.
First things first :

I need :
1.To show a networth of INR 2,00,00,000.
2. Application fee for obtaining the licence for INR 1,00,000 (non-refundable)
3. INR 10,00,000 as registration fees
4. INR 5,00,000 as renewal fees EVERY 3 years.

However there is a way by which all the above 4 pointers is going to get solved in a single shot:
To make matters simple, if I can get my hands on 2,00,00,000 INR and deposit that on the bank as Fixed deposit then all the purposes will be solved at a single stroke :
1. I can show a networth of 2,00,00,000 INR
2. From the interests that will be credited, the remaining 3 issues can be solved (obtaining licence, registration fees as well as renewal fees every 3 years)

Additional pointers for those like me who are searching for funds:
As obvious, lesser the money in the form of debt, better it is.

 

[Smart_trade]

Liabilities are deducted from assets while calculating networth.

ST

 

[rocky9281]

Hello ST and others,

Please help me with the following couple of queries:

1. What is the academic background required to become a Portfolio Manager under SEBI? Can a B.Tech in Biotechnology become one?
2.Do I have to form a company in order to start ? If yes, what kind of company will best suit the purpose (private ltd., sole proprietorship etc.)?

 

[Smart_trade]

Hello ST and others,

Please help me with the following couple of queries:

1. What is the academic background required to become a Portfolio Manager under SEBI? Can a B.Tech in Biotechnology become one?
2.Do I have to form a company in order to start ? If yes, what kind of company will best suit the purpose (private ltd., sole proprietorship etc.)?

I dont have definite information as I dont manage outside portfolios/funds .

B.Tech in Biotechnology should be fine as a basic qualification but they need some qualifications in finance such as MBA,ICWA,CS or some qualification from Institute of Capital Market set up by BSE/NSE and also some years experience in a funds management company or a mutual fund. SEBI will also ask to prove that you have a consistant track record of managing some funds for at least 3-5 years.

Smart_trade

 

[rocky9281]

SEBI will also ask to prove that you have a consistant track record of managing some funds for at least 3-5 years.

How can anyone show that he/she has managed funds. After all the person is still not having a licence for that.

 

[Smart_trade]

How can anyone show that he/she has managed funds. After all the person is still not having a licence for that.

One can show track record of managing his own funds.

In case one does not have necessary qualifications and experience, he can hire key people with required experience in the portfolio management ( but they dont come cheap ..)

ST

 

[rocky9281]

ST,

I would like to start a thread discussing about various aspects of starting a portfolio management firm. Yes I remember that you said you do not manage others' money and hence your knowledge may prove to be limited at certain times. But since something is better than nothing, I will be more than satisfied with all those things that you'll be able to help me out.

Will you participate in that thread? If you do it will be very helpful to me and other like minded members as well.

 

[rocky9281]

One can show track record of managing his own funds.

In case one does not have necessary qualifications and experience, he can hire key people with required experience in the portfolio management ( but they dont come cheap ..)

ST

ST,

I would like to start a thread discussing about various aspects of starting a portfolio management firm. Yes I remember that you said you do not manage others' money and hence your knowledge may prove to be limited at certain times. But since something is better than nothing, I will be more than satisfied with all those things that you'll be able to help me out with.

Will you participate in that thread? If you do it will be very helpful to me and other like minded members as well.

 

[Raj232]

it will be very helpful to me and other like minded members as well.

Good initiative at least for learning.

Definition online:
Portfolio management (PM) is the art and science of making decisions about investment mix and policy, matching investments to objectives, asset allocation for individuals and institutions, and balancing risk against performance.

More than just starting a firm is getting business to survive. For someone to keep their money with your company, the PM company will have to demonstrate that it can beat market performance. If it can beat most mutual funds consistently then definitely it will get business and grow.