1. What is Portfolio Management Services(PMS)?
Portfolio Management Services (PMS), a service offered by the Portfolio Manager, is an investment portfolio in stocks, fixed income, debt, cash, structured products, and other individual securities, managed by a professional money manager that can potentially be tailored to meet specific investment objectives.
2. Why Portfolio Management Services (PMS)?
- Enhanced Portfolio
- Maximum Returns
- Tailor-made Portfolio
- Transparent data management with Personalized attention
- Portfolio Managers take buy/sell decisions on behalf of, but in consultation with the client
3. How To Invest In Portfolio Management Services (PMS)?
To invest in Portfolio Management Services, investors need to have a minimum capital of 50 lakhs.
You can invest in PMS in these two ways:
Investing in funds through cheque.
Investors can directly transfer the existing stocks to their PMS accounts.
4. Can NRIs Invest in the PMS?
Yes, NRIs can invest in PMS through NRE or NRO accounts. NRE is an account in India for NRIs to park their foreign earnings, whereas NRO is an account in India to manage the income earned by the person in India. Some additional documents are required for processing the investment.
5. Is there any Lock-in Period?
There is no such Lock-in Period. But it is always advisable to have patience for at least two to four years for better returns.
6. What is the difference between Discretionary and Non-Discretionary Portfolio management services?
In discretionary portfolio management service, the Portfolio Manager individually and independently manages the funds and securities of each client in accordance with the needs of the client.
Under the non-discretionary portfolio management service, the Portfolio Manager manages the funds in accordance with the directions of the client.
7. What are the benefits of portfolio management services?
PMS creates tailored portfolios based on investors' long-term objectives. Through careful research and analysis, it highlights potential opportunities in the market. The aim is to maximize returns while reducing the risks associated with each particular asset class.
In addition to this, professional fund managers also chart out the investment strategy, which includes diversification of investments across different markets and asset classes at different times to achieve an optimal return on investment.
The main benefit of PMS is that it enables investors to have more control over their investments than investing through mutual funds or stock trading. With PMS, they can tailor their portfolio according to their individual needs and preferences while minimizing the amount of time they need to dedicate to managing assets.