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Portfolio Management Services

Portfolio Management Services(PMS) is another indirect investment in stock market. This is the best investment process to those who have no time,knowledge,experience and constant monitoring of stock market. PMS is a type of professional service offered by Portfolio Managers to their clients. It is the management of various securities(shares,bonds, mutual funds etc) and other assets(real estate etc) to meet specified investment goals for the benefit of the investors in less time.

Benefits of PMS:
1. Transparency: Portfolio Managers will always keep you apprised of the reason behind investment decisions. You are always kept-upto-date on the allocation and distribution of your funds
2. Asset allocation: Portfolio Management Services help in allocating savings of a client in terms of stocks,bonds,equity funds by using the Asset allocation plan.
3.Flexibility: PMS provides scientific and disciplined basis for investing . You have the flexibility of making investment decisions after speaking to research team.
4. Expertize: Portfolio Managers preserve clients money on time . PMS help in allocating right amount of money in right type of saving plan at right time.

In comparison to mutual funds 

Portfolio managers offer some very services which are better than the standardized product services offered by mutual fund managers.
Portfolio Mangers do not need to follow any rigid rules of investing a particular amount of money in a particular mode of investment but mutual fund managers need to work according to the regulations set up by financial authorities of their country. In India they have to follow rules set up by SEBI.

Types of PMS:

There are two types of PMS.
1.Discretionary portfolio Management Services(DPMS) : In this the client parts with his money in favior of manager. Manager handles all paper work, makes all the decisions and gives a good returns on the investment  and for this he charges a certain fees. Normally return on such investment varies from 14% to 18% depending on the call money rates.

2. Non-discretionary portfolio Management: In this type the Manager function as a counselor, but the investor is free to accept or reject the managers advice. Here also manager charges a certain fees.The manager concentrates on stock market instruments with a portfolio tailor made to the risk taking ability of the investor.

Services provided through portfolio Management

1. Portfolio Managers works as a personal relation ship managers.To discuss any concerns regarding money or saving, the client can interact with his appointed portfolio manager. The client can discuss on any major changes he want in his Asset allocation and Investment strategies.
2. PMS handles all type of administrative work like opening a new bank account or dealing with any financial settlement or depository transaction.
3.Client can access his portfolio details through online as frequently as he want.
4. Portfolio Manager help in managing tax of his client based on the detailed statement of transactions found on his portfolio.

PMS are recommended to those clients who have large surplus amount of money to invest. If you have minimum investment surplus of Rs.10 lakhs and above you can opt for PMS.


Anonymous said...


worldknowledge said...

you are most welcome .

Irfan Khan said...

Very Nice

worldknowledge said...

thank you Irfan

Anonymous said...

Are you taking portfolios???

worldknowledge said...

I mentioned before that the portfolio management is good for those people who have no time, knowledge and experience in share market...i think i have everything means time,knowledge and experience to maintain my portfolio by it is not for me...

Anonymous said...

very nice anila more useful for retail ivestors
good work

jeevan reddy said...

Are you a chartered accountant or something like that? anila aunty...

worldknowledge said...

If you have desire to learn about market you need not to be a chartered accountant Jeevan....

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