Portfolio Management Services

Portfolio Management Services

We have a basket of PMSs for our Valuable customers which is being managed by some of the eminent name of the Industry with track record of performance for many years in the market.

PMSs are broadly similar to mutual funds, as both manage investors’ money by investing the corpus in a portfolio of stocks or fixed income securities, depending on the type of scheme and investment strategy you choose. They offer a variety of schemes, each with a different investment objective. And, these have a designated fund manager to oversee the investments.

Yet, PMS and mutual funds differ in more ways than one.

PMS is a type of wealth management service, usually offered to wealthy investors. With greater flexibility and higher customization, PMS aims to generate superlative returns in comparison to other investment avenues focusing on the same asset class.

While mutual funds pool assets from several investors, under PMS you can choose whether to invest in a scheme with limited subscribers or opt for a personalized service. Hence, under PMS, there are different types of portfolio services.

Types of PMS

An investor can opt for portfolio service on a discretionary, non-discretionary, or advisory basis.

  • Discretionary: The portfolio manager makes the investment decisions and has the power of attorney (PoA) to buy and sell shares on behalf of the investor. The portfolio manager individually and independently manages the funds of each client.
  • Non-discretionary: The portfolio manager needs the client to confirm whether to buy or sell the stock recommended. The portfolio manager cannot make buy-sell decisions at his own discretion; he has to refer to the client for every transaction.
  • Advisory: The portfolio manager mainly gives advice on the portfolio; it’s up to the investor to execute the decisions.

The minimum investment stipulated by the regulator in a PMS is Rs 25 lakh.

The fees charged to investors consist of three components – the upfront fee, the management fee, and the performance fee. Some PMS might also have a fixed fee.