Portfolio Management Services (PMS)

Portfolio Management Services (PMS): A Tailored Approach to Wealth Management

Portfolio Management Services (PMS) have become a popular investment vehicle for high-net-worth individuals (HNIs) in India. This sophisticated approach to wealth management offers customised solutions tailored to specific financial goals, risk tolerance, and investment horizons.

Key Features of PMS:

Bespoke Portfolios: Unlike mutual funds, PMS allows for personalised portfolio construction, enabling investors to align their investments with their unique needs.
Expert Management: SEBI-registered portfolio managers oversee the investment process, leveraging their expertise to make informed decisions.
Higher Investment Threshold: A minimum investment of Rs. 50 Lakh is required, making PMS an HNI product.
Diverse Investment Options: PMS can encompass a range of asset classes, including equities, fixed income, and other securities.

By offering increased flexibility and individual attention, PMS empowers investors to take control of their financial future.

Types of Portfolio Management Services (PMS)

Portfolio Management Services (PMS) offer a range of investment strategies tailored to individual investor needs. Here are the three primary types of PMS:

Discretionary PMS

In a discretionary PMS, the portfolio manager has full authority to make investment decisions on behalf of the client. The manager selects and trades securities, rebalances the portfolio, and implements investment strategies based on the client's risk profile and financial goals. This approach is ideal for investors who prefer a hands-off approach to investment management.

Non-discretionary PMS

In a non-discretionary PMS, the portfolio manager acts as an advisor, providing recommendations and insights to the client. The final investment decisions, however, rest with the investor. This approach offers greater control to the investor, who can execute trades based on the manager's advice.

Advisory PMS

An advisory PMS provides tailored investment advice and recommendations to the client. The portfolio manager analyses market trends, economic indicators, and individual investor needs to develop personalised investment strategies. The client is responsible for executing trades based on the advisor's recommendations. This approach is suitable for investors who want to actively participate in their investment decisions while benefiting from expert guidance.

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