Introduction to PMS


Introduction to PMS

Portfolio Management Service, or PMS, is a professional service in which certified and experienced portfolio managers, supported by a research team, manage stock portfolios on behalf of their investors rather than they managing it on their own.
As professionals manage the investment portfolio, PMS enables sophisticated investors, with limited financial knowledge or lack of time, to take advantage of all the different types of investment options. The investment portfolio is customized as per the needs of the investor to ensure that it meets all the expectations and needs of different investors. Professionally managed portfolios are managed for a performance fee, and the investor has access to everything, including research, investing, and operations.
Types of Portfolio Management Services (PMS)
PMS falls into one of four categories:

  • Active
  • Passive
  • Discretionary
  • Non-discretionary
  • Active Portfolio Management It necessitates a high level of market knowledge. The approach involves continuous review of the market to acquire assets when they are fairly priced and sell them when they are overvalued. The approach necessitates rigorous market analysis, broad diversification, and a solid grasp of the business cycle.
  • Passive Portfolio Management– Risk-averse investors generally prefer passive techniques. Investing in an index fund or any other market index is one of the simplest methods to apply a passive approach. Such funds are based on the premise that fundamentals will always be reflected in the underlying asset’s value.
  • Discretionary Portfolio Management– Fund manager has total control over their client’s investment decisions under this technique. The discretionary manager makes all buy & sell decisions and employs an approach which they believe to be optimal.
  • Non-discretionary Portfolio Management– A financial adviser, in essence, is a non-discretionary portfolio manager. They will explain the advantages and disadvantages of investing in a certain market or strategy, but without your approval, they will not carry it out. The main distinction between a non-discretionary and a discretionary strategy is this.

Why Invest through a PMS?

  • Team with expertise: Our group has a wealth of experience in the facets of equity market.
  • Strict selection procedure: When choosing a strategy for clients, fund manager does thorough research, and use a stringent selection structure. Therefore, any approach must pass the evaluation of internal parameters.
  • Unbiased advice: Since PMS collaborate work with investors and also work on a profit-sharing fee, they work for investors’ gain and provide unbiased advice.
  • Greater Flexibility & Higher customisation: Allows active management of portfolios in which an investor can decide on the type of shares he wants to invest in.