Portfolio Management Services (PMS) Distributors book by National Institute of Securities Markets

The book discusses the fundamentals of investments and securities markets, providing a detailed analysis of stock investments, fixed-income securities, derivatives, and mutual funds. It intricately explains portfolio managers' role and operational aspects, including the portfolio management process, performance measurement, and evaluation criteria. Much of the book is dedicated to the critical elements of taxation, regulatory frameworks, governance, and ethical considerations in portfolio management, offering a holistic view of portfolio managers' responsibilities and challenges.

This book is tailored to equip PMS distributors with essential knowledge and skills, aligning to establish a common minimum knowledge benchmark for them.

The Present Publication is the October 2023 workbook version, published exclusively by Taxmann for NISM Certification Examination XXI-A [Portfolio Management Services (PMS) Distributors], with the following noteworthy features:

[Know the Basics] of investments, securities markets, investing in stocks, understanding fixed income securities, derivatives and mutual funds
[Understand] the role of portfolio managers; operational aspects of portfolio management services and the portfolio management process; performance measurement and evaluation of portfolio managers
[Get Oriented] to the taxation aspects and regulatory, governance and ethical aspects of portfolio managers
The detailed contents of the book are as follows:

Investments – This chapter discusses investments, differentiating them from speculation, and discusses investment objectives, types, and channels
Introduction to Securities Markets – It introduces securities markets, explaining the primary and secondary markets and the roles of various market participants
Investing in Stocks – This section covers equity investments, risk diversification, equity market overview, equity research, stock selection, and technical analysis
Investing in Fixed Income Securities – Discusses fixed income securities, bond characteristics, safety determinants, bond valuation, and price volatility
Derivatives – Defines derivatives, types of derivative products, market structures, purposes, and investment strategies in PMS
Mutual Funds – Explores the concept and role of mutual funds, their legal structure in India, types of mutual fund products, and investment processes
Role of Portfolio Managers – Provides an overview of portfolio managers in India, types of PMS, organizational structures, and general responsibilities
Operational Aspects of Portfolio Managers – Details on investor onboarding, disclosures, investor grievance redressal, regulatory disclosures, and investment costs
Portfolio Management Process – Discusses asset allocation decisions, correlation across asset classes, steps in portfolio management, and portfolio rebalancing
Performance Measurement and Evaluation of Portfolio Managers – Covers performance parameters, risk and return measures, risk-adjusted return, performance evaluation methods, and portfolio manager selection
Taxation – Focuses on the taxation of investors, taxation of various income streams, and specific tax regulations
Regulatory, Governance and Ethical Aspects – Addresses money laundering prevention, insider trading regulations, fraudulent and unfair trade practices, portfolio manager regulations, best practices, and investor charter