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NISM Certifications · NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors · Operational Aspects of Portfolio Managers

In a discretionary PMS, which document governs the relationship between the portfolio manager and the client and sets out the terms of the services, fees and the investment approach?

The portfolio management agreement governs the relationship. It is signed between the portfolio manager and the client and records the services, fees, investment approach, and the rights and duties of both parties, unlike demat statements or mutual fund documents.

  1. APortfolio management agreementCorrect
  2. BStock exchange bye-laws
  3. CClient's demat account statement
  4. DScheme information document of a mutual fund

Explanation

The portfolio manager and client enter into a portfolio management services agreement that sets out the rights, obligations, fees, investment approach and other terms of the arrangement. Exchange bye-laws, demat statements and mutual fund scheme documents do not govern this relationship.

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