Because India is the best Investment destination
“We are proud of 3 Ds: Democracy, Demographic Dividend and Demand” – Narendra Modi (Prime Minister of India)
These 3 Ds shows India has a tremendous opportunity to grow and inclines an NRI to invest in their home country. NRIs might find it confusing and difficult it to curb this opportunity. This is the reason why Portfolio Management Services is popular among NRIs, who have intention to diversify their portfolio in Indian equity markets.
The minimum amount to avail PMS is INR 50 lakhs, for both Residents and NRIs. A PMS agreement needs to be signed between the NRI and the provider, giving the power of authority to buy/sell shares. Along with this, as per RBI guidelines, Portfolio Investment Scheme (PIS) account also needs to be opened, which is solely used for PMS purpose. If they have investments, they can transfer to the PMS service provider. This should be entirely be done in Rupee account.