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