Our Service Providers

1. What is Portfolio Management Services (PMS)?

Portfolio Management Services (PMS) is an investment portfolio in stocks, fixed income, debt, cash, structured products and other individual securities, managed by a professional money manager, that can potentially be tailored to meet specific investment objectives.

When you invest in PMS, you own individual securities unlike a mutual fund investor, who owns units of the entire fund. You have the freedom and flexibility to tailor your portfolio to address personal preferences and financial goals. Although portfolio managers may oversee hundreds of portfolios, your account may be unique.

Investment Management Solutions in PMS, can be provided in the following ways:
- Discretionary
- Non Discretionary
- Advisory

Discretionary: Under these services, the choice as well as the timings of the investment decisions rest solely with the Portfolio Manager.

Non Discretionary: Under these services, the portfolio manager only suggests the investment ideas. The choice as well as the timings of the investment decisions rest solely with the Investor. However the execution of trade is done by the portfolio manager.

Advisory: Under these services, the portfolio manager only suggests the investment ideas. The choice as well as the execution of the investment decisions rest solely with the Investor. Note: In India majority of PMS providers offer Discretionary Services.

2. Who can offer PMS?

PMS can be offered only by entities having specific SEBI registration for rendering portfolio management services. Currently in India. PMS is offered primarily by asset management companies (AMCs) and brokerage houses.

4. Does one necessarily have to invest in cash to open a PMS account?

Apart from cash, the client can also hand over an existing portfolio of stocks, bonds or mutual funds to a PMS that could be revamped to suit his profile.However the portfolio manager may at his own sole discretion sell the said existing securities in favour of fresh investments.

5. What is the tax liability for the PMS investor?

The portfolio manager is a trustee acting in a fiduciary capacity on behalf of the investor. Therefore, the tax liability for a PMS investor would remain the same as if the investor is accessing the capital market directly. However the investor should consult his tax advisor for the same. The portfolio manager ideally provides audited statement of accounts at the end of the financial year to aid the investor in assessing his/ her tax liabilities.

6. What are the benefits of PMS?

a. Professional Management - The service provides professional management of portfolios with the objective of delivering consistent long-term performance while controlling risk.
b. Continuous Monitoring - It is important to recognise that portfolios need to be constantly monitored and periodic changes made to optimise the results.
c. Risk Control - A research team responsible for establishing the client's investment strategy and providing the PMS provider real time information to support it, backs any firm's portfolio managers.
d. Hassle Free Operation - Portfolio Management Service provider gives the client a customised service. The company takes care of all the administrative aspects of the client's portfolio with a periodic reporting (usually daily) on the overall status of the portfolio and performance.
e. Flexibility - The Portfolio Manager has fair amount of flexibility in terms of holding cash (can go up to 100% also depending on the market conditions). He can create a reasonable concentration in the investor portfolios by investing disproportionate amounts in favour of compelling opportunities.
f. Transparency - PMS provide comprehensive communications and performance reporting. Investors will get regular statements and updates from the firm. Web-enabled access will ensure that client is just a click away from all information relating to his investment. Your account statements will give you a complete picture of which individual securities you hold, as well as the number of shares you own. It will also usually provide:
- the current value of the securities you own; - the cost basis of each security;
- details of account activity (such as purchases, sales and dividends paid out or reinvested);
- your portfolio's asset allocation;
- your portfolio's performance in comparison to a benchmark;
- market commentary from your Portfolio Manager
g. Customised Advice - PMS give select clients the benefit of tailor made investment advice designed to achieve his financial objectives. It can be structured to automatically exclude investments you may own in another account or investments you would prefer not to own. For example, if you are a long-term employee in a company and you have acquired concentrated stock positions over the years and have become over exposed to few company's stock, a separately managed account provides you with the ability to exclude that stock from your portfolio.
h. Personalised Approach - Some Portfolio Managers may provide a personal investment management service to achieve the client's investment objective. In PMS, you may gain direct personalised access to the professional money managers who actively manage your portfolio. This interaction may come in various different ways including in-person meetings, conference calls, written commentary, etc with the fund management team.

7. What can you expect from PMS?

When one has entrusted his money to a PMS, one can expect:

 Handholding from his portfolio manager than he has been accustomed to from his mutual fund. One can expect to have a relationship manager/ financial advisor through whom he can interact with the fund manager at any time of his choice. One can also expect frequent (maybe monthly) interaction with the portfolio manager to discuss any concerns that he might have. To be updated on any major changes in asset allocation or in the investment strategy relating to his portfolio. All administrative matters, including operating a bank account and dealing with settlement and depository transactions, will be handled by the PMS.
 On handing over one's money, he will receive a user-ID and password from the PMS, which will grant him online access to his portfolio details. He can use these to check back on his portfolio as often as he likes.
 Keeping track of capital gains (and losses) for the taxman can be a depressing chore, when one has furiously churned his investments through the year. Opting for PMS will free him of this chore, as a detailed statement of the transactions on his portfolio for tax purposes comes as a part of the package.

8. What one pays for PMS?

When one has entrusted his money to a PMS, one can expect:

Most Portfolio Managers allow one to choose between a fixed and a performance-linked management fee or a combination. If one opts for the fixed fee, he may pay between 2.50-3.50 per cent of portfolio value; this is usually calculated on a weighted average basis. This fee is apart from the actual expenses like custodian expenses, audit fee, brokerage on transactions etc, which may be charged on actuals. The structure for the performance-linked fee differs across players; usually, apart from a performance-linked fee usually it may include a flat fee.
The portfolio manager also gets to share a percentage of your profit - usually 15-20 percent - earned over and above a threshold level, which may range between 8 per cent and 15 per cent.
Apart from management fees, separate charges will be levied towards brokerage, custodial services and towards meeting tax payments. Usually the fixed fee component is charged on a monthly basis and the variable component is charged on a yearly basis.When one opts for a performance-based fee, the profits are reckoned usually on the basis of "high watermarking". That is, one pays the fee only on the positive returns on his portfolio.
For instance, if one invests Rs. 100 in a PMS and its value appreciates to Rs. 150 at the end of the year, he pays a fee on the profit of Rs. 50. Subsequently, a fee will be levied only on gains over and above the Rs. 150 mark. If the value of his portfolio slumps to Rs. 70, and climbs back to Rs. 110, the Rs. 40 you earn will not be reckoned as profit. You will again be charged a fee only if the value of your portfolio recovers to over Rs. 150, the previous "high watermark."

9. Portfolio Management Services and Mutual Funds: The Differences

Features	PMS	Mutual Fund
Management	Provide ongoing, personalized access to professional money management services	Provide access to professional money management services
Customization	Portfolio can be tailored to address each investor's specific needs	Portfolio structured to meet the fund's stated investment objectives
Management	Provide ongoing, personalized access to professional money management services	Provide access to professional money management services
Ownership	Investors directly own the individual securities in their portfolio, allowing for tax management flexibility	Shareholders own shares of the fund and cannot influence buy and sell decisions or control their exposure to incurring tax liabilities
Liquidity	Although managers may hold cash, they are not required to hold cash to meet redemptions	Mutual funds generally hold some cash to meet redemptions
Minimums	Significantly higher minimum investments than mutual funds. Generally, minimum ranges from: Rs. 1 Crore + for Equity Options Rs. 5 Crore + for Fixed Income Options Rs. 20 Lacs + for Structured Products	Provide ongoing, personalized access to professional money management services
Flexibility	Generally more flexible than mutual funds. The Portfolio Manager may move to 100% cash if required. The Portfolio Manager may take his own time in building up the portfolio. The Portfolio Manager can also manage a portfolio with disproportionate allocation to select compelling opportunities	Comparatively less flexible

10 . Role of the Financial Advisor

The Financial Advisor should guide the investor through an ongoing consulting process designed to lead him towards his investing goals and keep his investment strategy on track. This process may include the following:

- Setting Goals and Guidelines: The investor along with the Financial Advisor can work together to identify his financial goals and expectations, which can be translated into a long-term investment plan.
- Determining Asset Allocation: Based on the investor objectives, the Financial Advisor may suggest an asset allocation divided among stocks, fixed income, debt, cash, structured products and other investments and also determine which investment vehicles are most appropriate for the investor. Having a mix of broad asset categories is an important factor in achieving the investor's investment objectives.
- Selecting Investment Managers and Investment Vehicles: After determining asset allocation, the Financial Advisor may recommend specific portfolio managers who manage assets in a particular style, such as large cap growth, for example. The Financial Advisor's choice of managers is generally based on the manager's investment style and performance history, the professional relationship he or she has developed with the manager and the manager's firm, and a number of other criteria.
- Managing and Monitoring Investor Accounts: Investors may receive periodic statements detailing their account's holdings and performance. The Financial Advisor may want to meet with the investor to explain the information in these statements and evaluate the performance in light of his goals. If a change is needed, the Financial Advisor can recommend adjustments to help meet investor objectives.
- Ongoing Personal Service:PMS service may include ongoing communication and frequent contact from the Financial Advisor, in addition to periodic reviews. Also the Financial Advisor may help you put investment performance in the proper perspective, and help you decide whether it may be appropriate to:
a) modify your expectations to reflect a changing market;
b) adjust your risk considerations; or
c) reallocate the assets in your portfolio.

11. Frequently Asked Questions

Q: What is Portfolio Management Services?

PMS is an investment portfolio of stocks, fixed income, debt, cash, structured products and other securities that is tailored to meet specific investment objectives.

Q: What are the benefits of PMS?

PMS can offer the following characteristics: inpidualised portfolios, professional management, richer canvas, flexibility, transparency, persification and asset allocation, among others.

Q: What types of investors own PMS accounts?

Each inpidual client has different needs that change over time. A Financial Advisor can help the investor decide whether portfolio management service is appropriate, based on his current financial situation, investment objectives, time horizon, risk tolerance and other factors.

Q: What investment strategies are available?

PMS is offered in a wide variety of asset classes and investment styles, including large cap, mid cap, small cap, multi cap, value and growth and international asset.

Q: What is the role of the Financial Advisor after a PMS account is opened?

The Financial Advisor helps the investor identify and select investment options, and continues to provide the services of a primary relationship manager. Financial Advisors take on a consultative role with the investor by helping the investor work with the portfolio management team to discuss and determine the appropriateness of the investor's current investment strategy. Financial Advisors also help in evaluating the investment performance of the investor.

Q: How does the investor stay updated on his portfolio's performance?

Regular communication from the portfolio management team is an essential tool in keeping the investor and the Financial Advisor informed. Among the tools that are usually provided: periodic performance reporting, monthly investment commentary, and online portfolio information.

Q: What is the difference between a PMS account and a mutual fund?

Unlike an investor in a mutual fund, portfolio managed account holders own the inpidual securities in their accounts. Although investment managers oversee hundreds of accounts, a PMS investor's account is "separate" from that of any other investor, which gives the investor the ability to direct the manager to customize the portfolio based on personal and financial needs and goals. For example, the investor may request that the portfolio include or exclude a particular security or sector, or that some holdings be sold to produce capital gains or losses.

Q: What if the investor has special requests?

PMS allow investors to impose reasonable stock, sector, or other preferences and restrictions on the management of their accounts. For example, if the investor owns his employer's stock in investment, the investor and the Financial Advisor may decide not to invest additional assets in the company.

Q: How much input does the investor have in the stocks that are chosen for his portfolio?

The Investor and the Financial Advisor will want to have an initial consultation to discuss specific objectives, risk tolerance, time horizon, and goals. Depending on the PMS account chosen, the investor may have the ability to impose reasonable investment restrictions on the management of his account. Some PMSs offer more flexibility than others, usually based on the amount invested.

Q: What are the minimum investment requirements for PMS accounts?

As per SEBI Regulation, the minimum investment requirements in PMS is Rs 50 lakhs.

Q: Are there risks associated with PMS investments?

Yes. All investments involve a certain amount of risk, including the possible erosion of the principal amount invested, which varies depending on the security selected. For example, investments in small and mid-sized companies tend to involve more risk than investments in larger companies.

Disclaimer

Investments in securities are subject to market risks. There are no assurances or guarantees that the objectives of any of the Products will be achieved. The investments may not be suited to all categories of investors. The value of the Portfolios can go up or down depending on various market factors. Past performance of the Portfolio Manager does not indicate the future performance of the Products or any other future Products of the Portfolio Manager. Investors are not being offered any guaranteed or indicative returns through any of the Products. The names of the Products do not in any manner indicate their prospects or returns. The performance of the Products may be adversely affected by the performance of individual companies, changes in the market conditions, micro and macro factors and forces affecting capital markets in particular like interest rate risk, credit risk, liquidity risk and reinvestment risk. Derivative/future and options products are affected by various risks including but not limited to counter party risk, market risk, valuation risk, liquidity risk, basis risk and other risk. Besides the price of the underlying asset, the volatility, tenor and interest rates affect the pricing of derivatives. In the case of stock lending, risks relate to the defaults from counterparties with regard to securities lent and the corporate benefits accruing thereon, inadequacy of the collateral and settlement risks. The portfolio Manager is not responsible or liable for any loss resulting from the operations of the Products/ Portfolios. Each portfolio will be exposed to various risks depending on the investment objective, investment strategy and the asset allocation. Non-Diversified Portfolio tends to be more volatile than diversified portfolio. Please read the Disclosure Document before investing. Nippon Life India Asset Management Limited is registered with Securities & Exchange Board of India as a Portfolio Manager vide Registration Number PM/INP000007085 having registered and corporate office at 4th Floor, Tower A, Peninsula Business Park, Ganpatrao Kadam Marg, Lower Parel, Mumbai - 400013.

RISK FACTORS

Investments in securities are subject to market risks and there is no assurance or guarantees that the objectives of any of the Offerings / Option will be achieved.
Investors are not being offered any guaranteed or indicative returns through any of the Offerings / Options. The investments may not be suited to all categories of investors.
The past performance of the Portfolio Manager in any Offering / Option is not indicative of the future performance. There is no assurance that past performances indicated in earlier Offering / Option will be repeated.
The names of the Offerings / Options do not in any manner indicate their prospects or returns. The various factors which may impact the value of the Offering / Option investments include, but are not limited to, fluctuations in the equity and bond markets, fluctuations in interest rates, prevailing political and economic environment, changes in government policy, factors specific to the issuer of the securities, tax laws, liquidity of the underlying instruments, settlement periods, trading volumes etc.
The Portfolio’s investment in some of the niche sectors like the technology sector runs the risk of volatility, high valuation, obsolescence and low liquidity.
The investments made are subject to external risks such as war, natural calamities, policy changes of Local/International markets which affects stock markets.
In case the portfolio invests in mutual funds registered with SEBI, scheme specific risk factors of each such underlying scheme will be applicable to the Portfolio. All risks associated with such underlying schemes, including performance of their underlying stocks, derivative instruments; stock-lending, overseas investments etc. will therefore be applicable to the Portfolio.
Risk arising out of non diversification: The investment objectives of one or more of the portfolio management Offerings / Options could result into concentration on a specific asset/ asset class/sector/ issuer etc., which could lead to non diversified portfolio which tends to be more volatile than diversified portfolio.
Equity and Equity related instruments on account of its volatile nature are subject to price fluctuations on daily basis. The volatility in the value of the equity and equity related instruments is due to various micro and macro economic factors affecting the securities markets. This may have adverse impact on individual securities /sector and consequently on the portfolio value of investment Offering/Option. Trading volumes, settlement periods and transfer procedures may restrict the liquidity of the Investments.
The inability of the Portfolio Manager to make intended securities purchases due to settlement problems could cause the Offering/Option to miss certain investment opportunities as in certain cases, settlement periods may be extended significantly by unforeseen circumstances. Similarly, the inability to sell securities held in the portfolio may result, at times, in potential losses to the Offering/Option, should there be a subsequent decline in the value of the securities held in the portfolio of Offering/Option.
Portfolio’s investment in unlisted securities could increase the risk of the portfolio as these unlisted securities are inherently illiquid in nature and carry larger liquidity risk as compared to the listed securities or those that offer other exit options to the investors.
The Portfolio Manager may, subject to authorization by the Client in writing, participate in securities lending. There are risks inherent in securities lending, including the risk of failure of the other party. Such failure can result in a possible loss of rights to the collateral, and the possible loss of corporate benefits accruing thereon. The Portfolio Manager is not responsible or liable for any loss resulting from the operations of the Offerings / Options.
Each portfolio will be exposed to various risks depending on the investment objective, investment strategy and the asset allocation. The investment objective, investment strategy and the asset allocation may differ from client to client. However, generally, highly concentrated portfolios with lesser number of stocks will be more volatile than a portfolio with a larger number of stocks. Portfolios with higher allocation to equities will be subject to higher volatility than portfolios with low allocation to equities.
There are various risks attached with the use of derivatives. The Portfolio Manager may use derivatives as may be permitted by SEBI from time to time. As and when the investments are made in the derivatives market, there are risk factors and issues concerning the use of derivatives that investors should understand. Derivatives are specialized instruments that require investment techniques and risk analyses different from those associated with stocks and bonds. The use of a derivative requires an understanding not only of the underlying instrument but also of the derivative itself. Derivatives require maintenance of adequate controls to monitor the transactions entered into, the ability to assess the risk that a derivative adds to the portfolio and other related capabilities. There is the possibility that a loss may be sustained by the portfolio as a result of the failure of another party (usually referred to as the “counter party”) to comply with the terms of the derivatives contract. Other risks in using derivatives include market risk, valuation risk, option risk, liquidity risk and basis risk. Also, it is to be noted that the market for derivative instruments is nascent in India.
Given below are some of the common risks associated with investments in fixed income securities, money market securities and PTCs. These risks include but are not restricted to:
1. Interest Rate Risk: As with all debt securities, changes in interest rates will affect the valuation of the Portfolios, as the prices of securities generally increase as interest rates decline and generally decrease as interest rates rise. Prices of longer-term securities generally fluctuate more in response to interest rate changes than do shorter-term securities. Interest rate movements in the Indian debt markets can be volatile leading to the possibility of large price movements up or down in debt and money market securities and thereby to possibly large movements in the valuation of Portfolios
2. Liquidity or Marketability Risk: This refers to the ease at which a security can be sold at or near its true value. The primary measure of liquidity risk is the spread between the bid price and the offer price quoted by a dealer. Liquidity risk is characteristic of the Indian fixed income market.
3. Credit Risk: Credit risk or default risk refers to the risk which may arise due to default on the part of the issuer of the fixed income security (i.e. will be unable to make timely principal and interest payments on the security). Because of this risk debentures are sold at a yield spread above those offered on Treasury securities, which are sovereign obligations and generally considered to be free of credit risk. Normally, the value of a fixed income security will fluctuate depending upon the actual changes in the perceived level of credit risk as well as the actual event of default. Investing in Bonds and Fixed Income securities may also be subject to price volatility due to such factors as interest rate sensitivity, market perception of the creditworthiness of the issuer and general market liquidity (market risk).
4. Reinvestment Risk: This risk refers to the interest rate levels at which cash flows received from the securities under a particular Portfolio are reinvested. The additional income from reinvestment is the “interest on interest” component. The risk refers to the fall in the rate for reinvestment of interim cash flows
Real Estate Bonds may have additional risks associated to the underlying assets: Investments in bonds in the real estate sector carry specific risks relating to the sector such as, inter alia, lack of clear title to land in the absence of computerized records; the long drawn procedures that exist for approval of real estate projects and different agencies from which approvals may be required (including environmental clearances); the legal sanction accorded to compulsory acquisition of land for public purposes by the government; rent control legislations that may be in operation in different parts of the country; the inability of issuers to refinance bonds from other sources like bank finance in the light of curbs imposed by the Central Bank and corporate governance issues surrounding the sector; the cyclical nature of the business and its dependence on macroeconomic factors and the relatively illiquid nature of these bonds given the long gestation periods and high per unit values that real estate projects are associated with.
Domestic Securitised debt including PTC’s can have different underlying assets and these assets have different risk characteristics. These may be as given in the following example:
1. Security 1 -Backed by receivables of personal loans originated by Bank. Specific Risk Factors: Loss due to default and/or payment delay on Receivables, Premature Termination of Facility Agreements, Limited loss cover, Delinquency and Credit Risk, Limited Liquidity and Price Risk, Originator/Collection Agent Risk, Bankruptcy of the Originator, Co-mingling of funds
2. Security 2 - Senior Series Pass Through Certificates backed by commercial vehicles and two-wheeler loan and loan receivables from IndusInd Bank Limited
3. Specific Risk Factors - Credit and Rating Downgrade Risk, Prepayment and Foreclosures Risk for Senior PTC Series, Prepayment and Foreclosures Risk for Senior PTC Series, Servicing Agent Risk, Co-mingling Risk, and Bankruptcy of the Seller.
Specific Risk Factors & Disclosures pertinent to Structured Notes like Equity index linked securities offerings / Options / Index Linked Debentures & Securitised Debt Instruments
1. Presently, secondary market for such securitised papers is not very liquid. There is no assurance that a deep secondary market will develop for such securities. This could limit the ability of the Offerings / Options to resell them. Even if a secondary market develops and sales were to take place, these secondary transactions may be at a discount to the initial issue price due to changes in the interest rate structure.
2. Securitized transactions are normally backed by pool of receivables and credit enhancement as stipulated by the rating agency, which differ from issue to issue. The Credit Enhancement stipulated represents a limited loss cover to the Investors. These Certificates represent an undivided beneficial interest in the underlying receivables and there is no obligation of either the Issuer or the Seller or the originator, or the parent or any affiliate of the Seller, Issuer and Originator. No financial recourse is available to the Certificate Holders against the Investors’ Representative. Delinquencies and credit losses may cause depletion of the amount available under the Credit Enhancement and thereby the Investor Payouts may get affected if the amount available in the Credit Enhancement facility is not enough to cover the shortfall. On persistent default of an Obligor to repay his obligation, the Seller may repossess and sell the underlying Asset. However many factors may affect, delay or prevent the repossession of such Asset or the length of time required to realize the sale proceeds on such sales. In addition, the price at which such Asset may be sold may be lower than the amount due from that Obligor.
3. The Structured Notes like the Index linked securities, in which funds are proposed to be invested in, are high risk instruments. A small movement in returns generated by the underlying index could have a large impact on their value and may also result in a loss.
4. The Issuer of equity index linked securities or any of its Agents, from time to time may have long or short positions or make markets including in NIFTY indices, futures and options (hereinafter referred to as “Reference Assets”) (and other similar assets), they may act as an underwriter or distributor of similar instruments, the returns on which or performance of which, may be at variance with or asymmetrical to those on the securities, and they may engage in other public and private financial transactions (including the purchase of privately placed investments or securities or other assets). The foregoing activities of ‘The Issuer of index linked securities” or any of its Agents and related markets (such as the foreign exchange market) may affect the value of the securities. In particular, the value of the securities could be adversely impacted by a movement in the Reference Assets, or activities in related markets, including by any acts or inactions of ‘The Issuer of index linked securities” or any of its Agents;
5. The equity Index linked securities, even after being listed, may not be marketable or may not have a market at all;
6. The returns on the Structured securities, primarily are linked to the CNX Nifty Index and/or any other equity benchmark as the Reference Asset, and even otherwise, may be lower than prevalent market interest rates or even be nil or negative depending entirely on the movement in the underlying index and futures values as also that over the life of the securities (including the amount if any, payable on maturity, redemption, sale or disposition of the securities) the security holder may receive no income/return at all or negative income/return on the security, or less income/return than the security-holder may have expected, or obtained by investing elsewhere or in similar investments.
7. The return on investment in securities would depend on the prevailing market conditions, both domestically as well as internationally. The returns mentioned in the term sheets are indicative and may or may not accrue to an investor accordingly.
8. In equity index linked securities, in the event of any discretions to be exercised, in relation to method and manner of any of the computations including due to any disruptions in any of the financial markets or if for any other reason, the calculations cannot be made as per the method and manner originally stipulated or referred to or implied, such alternative methods or approach shall be used as deemed fit by the issuer and may include the use of estimates and approximations. All such computations shall be valid and binding on the investor, and no liability there for will attach to the issuer of equity index linked securities / AMC;
9. There is a risk of receiving lower than expected or negligible returns or returns lower than the initial investment amount in respect of such equity index linked securities over the life and/or part thereof or upon maturity, of the securities.
10. At any time during the life of such securities, the value of the securities may be substantially less than its redemption value. Further, the price of the securities may go down in case the credit rating of the Company or issuer goes down;
11. the securities and the return and/or maturity proceeds hereon, are not guaranteed or insured in any manner by the Issuer of equity index linked securities;
12. Performance of the Reference Index will have a direct bearing on the performance of the Offerings / Options. In the event the Reference Index is dissolved or withdrawn by the Index Provider, such as, India Index Services & Products Limited (IISL) (for NSE- Nifty), BSE for BSE-Sensex etc., the Debenture-Trustees upon request by the issuer may modify the terms of issue of debentures, so as to track a different and suitable index and appropriate intimation will be sent to the debenture holders.
13. Tracking errors are inherent in any equity index linked security and such errors may cause the equity Index-Linked security to generate returns which are not in line with the performance of the Reference Index or one or more securities covered by / included in the Reference Index. Such variations, referred to as tracking error, are expected to be around 2% per annum, but may vary substantially due to several factors including but not limited to:
  1. Any delay experienced in the purchase or sale of securities due to liquidity of the market, settlement and realisation of sales proceeds and the registration of any security transfer and any delays in receiving cash and scrip dividends and resulting delays in reinvesting them.
  2. The Reference Index reflects the prices of securities at close of business hours.
  3. The Index Provider undertakes a periodic review of the scripts that comprise the Reference Index and may either drop or include new securities.
14. The Issuer of equity index linked securities or any person acting on behalf of the Issuer of equity index linked securities, may have an interest/position as regards the Portfolio Manager and/or may have an existing banking relationship, financial, advisory or other relationship with them and/or may be in negotiation/discussion with them as to transactions of any kind,
15. The Issuer of equity index linked securities or any of its Agents, have the legal ability to invest in the units offered herein and such investment does not contravene any provision of any law, regulation or contractual restriction or obligation or undertaking binding on or affecting the investor, and/or its assets;
In the interest of investors, the Portfolio Manager may, at its sole discretion (in case of discretionary service), invest up to 100% of the portfolio in liquid and / or debt mutual fund schemes. Moreover, the Portfolio Manager may at its sole discretion decide not to apply to the securities and return the funds to investors, in case there is any change in the risk/return profile of the portfolio in the backdrop of changed market conditions or for any other reason that the Portfolio Manager may deem appropriate.

Terms and Conditions

For the purpose of this Privacy Policy, wherever the context so requires the term "You" or "User" shall mean any natural or legal person including Online and offline clients and the term "We", "Us", "Our" shall mean Nippon Life India Asset Management Limited (NAM India) and Nippon India Portfolio Management (NAM India PMS).

User shall use the username and password with which he shall access account information and access various services provided by us over the Internet. It shall be the sole responsibility of the User especially the investors to ensure adequate protection and the confidentiality of the username and password and any disclosure thereof to any other person shall be entirely at the User 's risk.
We will take best efforts to keep the website updated on a regular basis so as to provide most current information to Users including the investors. However, the investor agrees that because of communications issues, it is possible that the site may not be current on occasion. The Investor also agrees that the look and feel of the Web screen and outputs there from may differ based on the nature of the software used by the Investor to browse the Website.
We shall not be liable for any unauthorized usage of the username and password facility and the User hereby fully indemnifies and holds NAM India, NAM India PMS, its officers, employees, and authorised representatives harmless against all action, suit, proceeding and demands whatsoever initiated against it or any loss, cost or damage incurred by it as a result thereof.
We respect the privacy of everyone who uses this website and are committed to maintaining the privacy and security of the personal information of all users of this Website.
The User especially the investors agree and hereby gives irrevocable consent that the personal information collected from the website may be disclosed to

to the Registrar and transfer agents, Banks, Custodians, Depositories and /or authorised external third parties who are involved in transaction processing, dispatches etc.
to the Distributors/ Referrer/ Brokers or other intermediaries engaged by Us
to any governmental authority including but not limited to Securities and Exchange Board of India, Reserve Bank of India etc. and to any other third person as per their directions
to other vendor/service provides engaged by Us for servicing their investors including but not limited to credit rating agencies, local and international courier services providers, post office etc.
to any person under the applicable laws

We have adopted reasonable security practices and procedures and have implemented such reasonable practices and safeguards which are appropriate to the sensitivity of your personal information on best efforts basis.

However, despite our best efforts, if unauthorised persons breach our security control measures resulting in the website being hacked or presenting inaccurate information etc. NAM India, NAM India PMS their directors, officers, employees, or affiliates’ will not be responsible.
Please note that this policy may change from time to time. If We change the privacy policies and procedures, it will be posted on this website to keep you/users aware of it. Changes to this Privacy Policy are effective when they are posted on this page. Please visit Our website to keep yourself abreast of any changes to this Policy.

GRIEVANCE REDRESSAL

If investors/customers/clients have any concerns relating to their personal and sensitive information they may address to - [email protected]

Internal Auditor

Year-end Client Certification Auditors

Fund Accountant

Custodian