Portfolio Management Services · advanced
PMS Performance, Exit & Fee Arithmetic
Measuring performance against a benchmark, the rules on leaving a PMS and exit loads, and worked examples of how fixed and performance fees are computed.
- 01Measuring Performance — TWRR, Benchmarks and What Attribution MeansPerformance figures are easier to read once the method behind them is understood. This lesson explains time-weighted and money-weighted returns, how a return is compared with a benchmark, and what performance attribution does and does not show.
- 02Leaving a PMS — Withdrawal, Exit Load and Your RightsA PMS client may withdraw money or close the account as the client agreement provides. This lesson covers SEBI's caps on exit load, the situations in which a client must be allowed to leave without exit load, and the market and tax consequences of selling on the way out.
- 03Fee Arithmetic — How Fixed and Performance Fees Are ComputedPMS fees are whatever the client agreement provides, within SEBI's limits, and the arithmetic is simple once the terms are known. This lesson works through a fixed fee, a performance fee with a hurdle rate, and the high-water mark over several years. All percentages are illustrations only.