Portfolio Management Services (PMS) refers to an investment portfolio in equities, fixed income, cash, debt-structured products, and other individual assets that are managed by a professional money manager and can be adjusted to fit specific investment objectives. Unlike in mutual funds where the investor owns units of the fund when you invest in PMS funds, you own individual securities. You have the suppleness to customize your portfolio to meet your specific requirements and objectives. Although portfolio managers may be in charge of hundreds of accounts, yours may be one of a kind.
Portfolio
Management
Services
Benefits of PMS
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Investors prioritize price over value and buy lower-quality equities.
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NPNI holds fewer indexes, Nifty, BSE 200, and Nifty 500 account for most market cap.
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Non-index firms have higher NPNI holdings.
Premium Portfolio
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PMS provides transparent ball-by-ball portfolio reporting.
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Mutual funds lack transparency due to scattered holdings, de-duplication difficulties, and diluted returns.
Transparent
& Strong Holdings
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PMS caters to the wealthy; expanding market familiar with equity investment.
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Investing diversifies assets; sweat equity is a major source of wealth.
Customers are focused
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Low portfolio churn, intriguing PMS-SIP with high-quality equities.
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Paperless and user-friendly; add to the portfolio on the same day.
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Perfect for unexpected market drops and quick recovery.
Based on online Top-ups
PMS tailors its plan based on an individual's income, budget, age, and willingness to take on risk.
Individual Investment Plan
By reducing the potential risks associated with investments, it enhances the likelihood of generating profits.
Minimizes Risk
Diversification of portfolio for risk management.
Diversification
PMS has the capacity to be more assertive, which could result in greater returns being generated.
Higher Returns
It provides a range of themes that can be utilized to take advantage of diverse economic circumstances.
Leverage
High accountability of the Fund Manager
Fund Manager
Types of PMS
Active portfolio management demands market knowledge, rigorous analysis, diversification, and business cycle awareness to buy low and sell high.
Active
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Passive portfolio management believes in efficient market theory, reflecting fundamentals in asset value, preferred by risk-averse investors.
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Index fund tracks S&P 500; simple passive approach.
Passive
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Discretionary portfolio management offers professional investment decisions to clients with substantial knowledge.
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The manager controls buy/sell and selects the optimal approach. Clients trust the professional approach.
Discretionary
Non-Discretionary
A financial adviser, a non-discretionary manager, advises the market/strategy benefits but won't execute without consent, differing from discretionary management.