Service

Portfolio Management Service

A Portfolio Management Service (PMS) is a professional investment service offered by financial institutions, portfolio managers, and brokers to manage a client’s securities and assets in a systematic and customized way. PMS helps clients achieve their investment objectives by tailoring strategies according to their risk appetite, financial goals, and time horizon. Here's a breakdown:

Key Features of PMS:

  1. Customization: Unlike mutual funds, PMS provides individualized investment solutions tailored to the specific needs of high-net-worth individuals (HNWIs).

  2. Active Management: Professional portfolio managers actively manage the portfolio by making timely buy and sell decisions based on market conditions and the client's objectives.

  3. Personalized Service: Each client holds a separate portfolio, and the management is done in line with their preferences.

  4. Transparency: PMS clients receive detailed reports on their portfolio's performance and decisions made by the portfolio manager.

  5. Ownership: In PMS, clients hold the securities directly in their names, giving them more control and transparency over the investments.

  6. Flexibility: Clients can customize their portfolios by selecting the types of assets (stocks, bonds, commodities, etc.) based on their financial goals.

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Types of PMS:

  1. Discretionary PMS: The portfolio manager takes all decisions related to investment without the need to consult the client.

  2. Non-Discretionary PMS: The portfolio manager provides advice, but the final investment decisions are made by the client.

  3. Advisory PMS: The portfolio manager gives investment recommendations, and the execution is carried out based on the client's approval.

Benefits of PMS:

  • Professional Expertise: Portfolios are managed by seasoned professionals with deep market knowledge.
  • Diversification: PMS allows clients to diversify across different asset classes.
  • Focus on Wealth Creation: The service is aimed at delivering long-term capital appreciation, income generation, or both.
  • Higher Control and Customization: Clients can have greater say in how their money is invested compared to mutual funds.

Who Should Opt for PMS?

PMS is generally suited for:

  • High-net-worth individuals (HNWIs) who want personalized and professional management of their wealth.
  • Investors looking for higher returns and willing to take on more risk compared to mutual funds.
  • Clients who prefer to have a direct say in their portfolio and need more flexibility and customization in asset allocation.