Portfolio Management Services (PMS)

Portfolio Management Services (PMS) is a professional investment management service offered to high-net-worth individuals (HNIs), institutions, and other investors who want personalized management of their financial portfolios. In PMS, an experienced portfolio manager or team makes tailored investment decisions on behalf of clients, based on their financial goals, risk appetite, and time horizon.

Key Features of PMS:

1. Personalized Portfolio: Unlike mutual funds, where investments are pooled, PMS offers customized portfolios tailored to individual client needs.

2. Active Management: The portfolio manager actively manages the investments, making real-time decisions to optimize returns and manage risks.

3. Wide Range of Assets: PMS can invest in a variety of financial instruments such as equities, debt, and sometimes alternative assets, providing diverse investment options.

4. Minimum Investment: PMS typically requires a higher minimum investment, often around ₹50 lakh or more, making it ideal for HNIs.

5. Transparency: Clients receive regular reports on the portfolio’s performance, allowing them to track their investments in detail.

Types of PMS:

1. Discretionary PMS: The portfolio manager has full discretion to make investment decisions without seeking the client’s approval.

2. Non-Discretionary PMS: The portfolio manager provides advice and suggests investments, but the client retains the final say on decisions.

3. Advisory PMS: The portfolio manager provides investment recommendations, and the client executes the decisions independently.

Benefits of PMS:

• Tailored investment strategies

• Professional management by experts

• Flexibility in investment choice

• Potential for higher returns with a focused approach

• Regular updates and performance tracking

PMS is designed to cater to clients who prefer a personalized, high-touch investment management approach with active monitoring and adjustments to maximize growth and protect wealth.