Portfolio Management Services

Introduction

Portfolio Management Service (PMS) in India is a sophisticated investment management service tailored for individuals with high net worth. PMS offers a range of investment options across equity, fixed income, and other structured products, managed by professional portfolio managers who aim to achieve superior returns for their clients.

What is PMS?

PMS is an investment portfolio in stocks, fixed income, debt, cash, structured products, and other individual securities, managed by a professional money manager. Unlike mutual funds, where an investor owns units of the fund, PMS clients own individual securities. This allows for a high degree of customization and flexibility in managing the investments according to the investor's financial goals and risk tolerance.

Types of PMS

• Discretionary PMS:

  In this type, the portfolio manager takes all the investment decisions on behalf of the client.



• Non-Discretionary PMS:

  Here, the portfolio manager suggests investment ideas, but the final decision rests with the client.

Benefits of PMS

• Professional Management:

  Experienced and skilled portfolio managers handle the investments, aiming to deliver superior returns.



• Customization:

  Portfolios can be tailored to meet the specific investment objectives and risk appetite of the investor.
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  Transparency:

  Regular updates and detailed reports on the portfolio's performance and transactions.
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  Flexibility:

  Ability to adjust the investment strategy based on market conditions and changing client needs.
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  Direct Ownership:

  Investors have direct ownership of individual securities, allowing for greater control over their investments.

Who Should Opt for PMS?

PMS is suitable for high-net-worth individuals (HNIs) and institutional investors who seek personalized investment solutions, direct ownership of securities, and higher returns than traditional investment avenues. Typically, the minimum investment required to avail of PMS in India is INR 50 lakhs.

Regulatory Framework

PMS in India is regulated by the Securities and Exchange Board of India (SEBI). SEBI mandates stringent compliance and disclosure norms to ensure transparency and protect investor interests.