Portfolio Management Service (PMS)

Portfolio Management Service (PMS) is a tailor made professional service offered to cater the investments objective of different investor classes. The clients can be Individuals or Institutional entities with high net worth. In simple words, a PMS provides professional management of investments to create wealth.

PMS offers various customized portfolios depending on investors risk appetite and returns expectation. They offer discretionary as well as non-discretionary portfolios. In discretionary portfolio, fund manager takes investment decision on behalf of the investor & in case of nondiscretionary portfolio; fund manager suggests investment ideas and takes approval from investors before investing. In India majority of Portfolio Managers offer Discretionary Services.

Features of PMS
  • Professional Management : PMS provides professional management of portfolios with the objective of delivering consistent long-term performance while controlling risk.
  • Risk Control : Well defined investment philosophy & strategy acts as a guiding principle in defining the investment universe. Further, professional management ensures disciplined portfolio construction, monitoring and the risk management processes.
  • Transparency : Most of the PMS houses provide account statements and performance reports on a monthly basis along with web access to track all information relating to investments made ensuring enhanced transparency.
  • Personalized Approach : In PMS, investor gain direct personalized access to the professional money managers who actively manage their portfolios. This interaction may come in various different ways including in-person meetings, conference calls, written commentary, etc with the fund management team.
Benefits of PMS
  • Stock selection is based on high level of investment expertise and research.
  • PMS normally has a concentrated portfolio of 15-20 stocks.
  • A concentrated portfolio increases the potential of higher returns.
  • Clients receive regular reporting and personal service
  • PMS are transparent in terms of expenses they charge