Green Portfolio NDPMS (Non-Discretionary PMS)

What Is Green Portfolio Non-Discretionary PMS (NDPMS)?

Green Portfolio NDPMS is a Non-Discretionary Portfolio Management Service in which Green Portfolio's research team recommends listed Indian equities, but every investment is made only on the client's express prior instruction. It aims for long-term capital appreciation through a multicap portfolio, with a ₹50 lakh minimum investment, the S&P BSE 500 TRI as benchmark, an indicative holding period of 2–5 years and a suggested minimum horizon of three years.

In an NDPMS, decision-making works differently from a discretionary PMS:

• The portfolio manager researches companies and identifies opportunities.
• The portfolio manager recommends stocks, allocations or transactions.
• The client keeps decision-making authority over each investment.
• Trades are executed only after the client's instruction or approval.
• Securities are held directly in the client's own portfolio, not as mutual-fund units.

Green Portfolio NDPMS Snapshot

How Does Green Portfolio Non-Discretionary PMS Work?

Green Portfolio NDPMS works in five steps: research, recommendation, client approval, trade execution and ongoing monitoring.

1. Research and idea generation: Green Portfolio's investment team studies listed companies' business prospects, financial position and valuations.
2. Portfolio recommendation: The portfolio manager identifies securities that fit the client's objective and risk profile.
3. Client review and approval: The client reviews each recommendation, because investments are made only on the client's prior instruction.
4. Trade execution: Once the instruction is received, the trade is processed under the PMS agreement.
5. Monitoring and reporting: Holdings and sectors are monitored continuously, portfolios are rebalanced when prospects or valuations change, and quarterly research reports are shared.

This structure suits investors who want professional research without handing over the investment decision.

Green Portfolio NDPMS Investment Strategy

Green Portfolio NDPMS invests in listed Indian equities across large-, mid- and small-cap companies, aiming for long-term capital appreciation from a portfolio of about 15–20 stocks. The number of holdings can rise as new securities are added, and stock and sector exposures are rebalanced as business prospects and valuations change.

The S&P BSE 500 TRI is used as the benchmark because the portfolio combines companies from all three market-cap segments.

Unlisted securities: PMS regulations allow up to 25% of client assets in unlisted securities. For NDPMS, Green Portfolio may invest up to 10% of AUM in unlisted, unrated securities of non-associated issuers, within that 25% limit. Its disclosure also classifies REITs and InvITs as hybrid securities. This is a permitted limit, not a target allocation, and the NDPMS has no standard allocation to AIFs.

Derivatives: Green Portfolio generally does not invest in derivatives for NDPMS clients. Derivatives exposure is possible only if mutually agreed in the PMS agreement and within the stated limits.

How Are Trades Approved in Green Portfolio NDPMS?

In Green Portfolio NDPMS, the client takes the final investment decision and every trade is executed only after the client's express prior instruction, whereas a discretionary PMS manager can trade within the agreed mandate without approval for each trade.

The workflow is: Research → Recommendation → Client review → Client instruction → Trade execution → Monitoring.

This makes client involvement an operational factor. A delayed approval can mean a recommended stock moves in price before the trade is placed. On the other hand, the client can decline any recommendation instead of having it executed automatically.

Green Portfolio NDPMS vs Discretionary PMS

The core difference between Green Portfolio NDPMS and a discretionary PMS is who takes the investment decision: the client in NDPMS, the portfolio manager in discretionary PMS.

Choose NDPMS if you want professional research but prefer to review and approve investment decisions yourself.

Choose discretionary PMS if you are comfortable letting the portfolio manager act within the agreed mandate. Green Portfolio's discretionary options include Green Portfolio Dividend Yield Fund and Green Portfolio Fund of Funds.

If you are unsure, discuss your objectives, risk profile, liquidity needs and preferred level of involvement with the portfolio manager before choosing. To see how PMS differs from pooled products, read PMS vs mutual funds.

Green Portfolio NDPMS Minimum Investment, Fees, Custody and Taxation

The minimum investment in Green Portfolio NDPMS is ₹50 lakh, in line with SEBI's PMS minimum, and client assets are held with custodian partners Edelweiss, ICICI and Orbis.

Fees: Product-specific NDPMS fees are not published. Green Portfolio charges no upfront fee, entry load or exit load on its PMS fee structures, and a high-water mark applies to performance fees. NDPMS and discretionary PMS can have different fee schedules, so compare the actual NDPMS fee schedule before onboarding.

Taxation: Because securities are held in the client's own account, tax depends on the securities, holding period, realised gains, dividends and the investor's tax status; PMS is not a pooled-fund tax wrapper. See ALTPORT's guide to PMS taxation.

Who Should Invest in Green Portfolio NDPMS?

Green Portfolio NDPMS suits investors who meet the ₹50 lakh minimum, want a professionally researched listed-equity portfolio, and prefer to take part in investment decisions over a medium- to long-term horizon. Investors should also:

• Understand that equity portfolios can be highly volatile
• Be comfortable reviewing recommendations and giving timely trade instructions

It may be less suitable for investors who do not want to take part in individual decisions or cannot respond promptly when approvals are needed. For a broader comparison, see the best PMS in India or speak to an ALTPORT advisor.

Green Portfolio NDPMS Risks

The main risks of Green Portfolio NDPMS are equity-market risk plus risks from the client-approval process, such as execution delays, along with concentration, liquidity, unlisted-security and strategy risk.

Market risk: Listed equities can rise or fall sharply, and there is no assurance the objective will be met.

Execution risk: Because each investment needs client approval, delays can affect the timing or price of execution.

Concentration risk: A portfolio can become concentrated in particular companies, industries or sectors.

Liquidity risk: Some securities trade in low volumes, which can affect buying or selling at the desired price.

Unlisted-security risk: Where permitted and chosen, unlisted securities carry different liquidity, valuation and information risks from listed shares.

Strategy risk: Investment decisions may not always be profitable, and past performance does not indicate future results.