Portfolio Management Service

Portfolio Management Services or PMS, is a service offered by the Portfolio Manager or an asset management company, is an investment portfolio in stocks, fixed income, debt, cash and other securities, managed by a professional fund manager that can potentially be tailored to meet specific investment objectives. Unlike mutual funds, where investors own units of the mutual fund scheme, in a PMS, the investors own individual securities. Although the portfolio managers may oversee hundreds of portfolios, your account may be unique.

Types of PMS

1. Discretionary PMS

Under this service, the choice as well as the timings of the investment decisions is solely lies with the Portfolio Manager.

2. Non-Discretionary

Under this service, while the portfolio manager will suggest only the investment ideas, the investor will decide the investment timings and decisions regarding the portfolio. However the execution of the trades is done by the PMS portfolio manager.

3. Advisory

Under this service, while the PMS portfolio manager only suggests the investment ideas, the decision as well as the execution of the investment decisions rest solely with the Investors.

Benefits of a PMS

1. Professional Management

The PMS Service provides professional management of stock portfolios with the main objective of delivering long-term performance while minimising risk.

2. Continuous Monitoring

The PMS fund manager, constantly monitors the portfolio and periodic changes are made by him/her to optimise the performance.

3. Flexibility

The Portfolio Manager has fair amount of flexibility in terms of holding cash, for example, it can keep the cash holding even up to 100% depending upon his./her understanding of the market conditions. The portfolio manager can create a reasonable concentration in the investor portfolios by investing disproportionate amounts in favour of foreseeable opportunities in the market situation.

4. Risk Control

The research team of the PMS Service, provides real time information to support the fund management team and thus control the risk.

5. Ease of Operation

Portfolio Management Service provides the clients with a customised service and takes care of all the administrative aspects and provides periodic portfolio reporting. It discloses the overall status of the portfolio, holdings and performance on a daily basis. For this, the PMS Service provides a login ID and password for the investor to check his/her PMS details.

6. Custom Made Advice

For select clients, the PMS provider gives the benefit of tailor made investment advice designed to achieve investors various financial goals.

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