Portfolio Management Services (PMS):
Portfolio management is the art and science of selecting and overseeing a group of investments that meet the long-term financial objectives and risk tolerance of a client, a company, or an institution.
Why Invest In Portfolio?
- Access to a diverse range of products that would not be available in other products like mutual funds.
- Opportunity to invest in a customised bouquet of products to match your investment goals
- Greater flexibility gives you the option of buying financial instruments depending on the opportunities present.
- Regular reports and updates to give you a Consolidated and unified view of your investments and their status.
Ways To Invest In PMS
There Are Two Ways In Which You Can Invest Through PMS:
- Discretionary: In this type of PMS, you give your portfolio manager the authority to make investment decisions on your behalf.
- Non-Discretionary: In this type of PMS, the portfolio manager only offers investment advice while you, as the investor, decide if you want to act on that advice. However, it is the portfolio manager who acts on your decision.
Factors To Evaluate Before Investment
Here Are Some Factors That You Should Evaluate When You're Looking To Invest Through PMS:
- Costs: Understand the costs involved when investing through PMS. There may be an entry load, management fees, and profit-sharing agreements depending on which PMS you select.
- Minimum Investment: PMS schemes usually have a minimum amount that you need to invest to utilize their services. Determine the minimum investment amount before investing through PMS. The minimum amount to invest in PMS is 50 Lakhs.
What is Portfolio Management Services ?
Portfolio Management Services (PMS), is an investment portfolio in stocks, fixed income, debt and structured products, managed by a professional fund manager as per the investment Mandate or objective.
Different Types of PMS ?
- Discretionary: The investment decisions rest solely with the Fund Manager. In india most of the fund managers offer Discretionary PMS.
- Non Discretionary: The Fund manager only suggests the investment ideas. The investment decisions rest solely with the Investor but the execution of trade is done by the Fund Manager.
- Advisory: The portfolio manager only suggests the investment ideas. The execution of the investment decisions rests solely with the Investor.
Why PMS ?
- Risk is managed better by the expert Portfolio managers.
- Portfolio is constantly monitored and periodic changes are made to better the performance and also to avoid the landmines.
- The portfolio Manager can hold cash depending on the market condition and also to take advantage of upcoming nearby opportunities. He can also be invested 100% depending on the market conditions. PMS provide better flexibility to manage funds.
- Professional Management with the objective of delivering good returns in long-term.
- Some PMS provides customisation in the portfolio. For example, if some client doesn’t want to invest in Alcohol or cigarette manufacturing companies then the fund manager can customise the portfolio which will exclude Alcohol or cigarette manufacturing companies.
- The PMS team take care of the complete documentation and reporting part which make the complete onboarding process Hassle Free.
- PMS is a SEBI licensed investment platform for investing in stocks, fixed income, cash, structured products and other individual securities, managed by a professional money manager, which can potentially be tailored to meet specific investment objectives. Every account may be unique though portfolio managers may run several portfolios simultaneously. As per SEBI guidelines the minimum corpus required to invest is Rs. 50 lakh, either a sum of up to Rs 50 lakh or stocks worth this much or combination of both.
Portfolio management is more than just investment advice, as it can encompass all parts of a person's financial life. The idea is that rather than trying to integrate pieces of advice and various products from a series of professionals, high net worth individuals benefit from a holistic approach in which a single manager coordinates all the services needed to manage their money and plan for their own or their family's current and future needs.
Livewellfinserv brings you experts who have handled personal and professional portfolios over the years. They can help you offer management services to ensure maximum wealth generation with minimal hassle for the client. Contact us, and our associates will answer all your queries regarding the same. Our other products and services can help you in wealth generation or help in saving wisely.
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