Portfolio management services - a customized investing option for HNI individuals

Portfolio management services - a customized investing option for HNI individuals

Are you earning money in bagfuls & planning to invest but have no time to research the best available options to choose correctly? Are you expecting a superior treatment of your wealth for your investments? The answer to all your investment anxieties is portfolio management services (PMS).

In today’s complex financial market, every individual investor has their own specific financial needs that are based on their risk appetite and financial goals. But regardless of this, every investor wants to maximize his return on investments with capital protection. This requires management of investments professionally to achieve specific investment objectives, relieving investor from the day-to-day administrative hassles of investments. This is where the Portfolio Management Services(PMS) comes in picture. In India, all major brokerage firms, asset management companies and independent experts provide portfolio management services to clients.

Taking into account, the unpredictable nature of the share market, a strong expertise and strong research is required to make the right decision. Portfolio management is not an easy task as it involves juggling between the limited choices at hand with twin requirements of adequate safety and sizable returns. Because managing investments in equities requires time, knowledge, right mind-set, experience and constant monitoring of stock market, an expert called Portfolio Manager is needed to help manage your investments. The Portfolio Manager advises, manages and administers the securities and funds on behalf of the entrusting client. These portfolio managers use their combined talents and experience to build up the portfolio of investments with an endeavor to bring out the best in it keeping your risk appetite in mind. Thus your investments are always under the guidance of experienced & fundamentally sound portfolio managers.

What is PMS?

It is the art and science of making decisions about investment mix and policy, matching investments to objectives, asset allocation for individuals and institutions, and balancing risk against performance. In other words, Portfolio Management Services (PMS) is a specialized & customized service that offers a range of specialized investment strategies to capitalize on the opportunities in the market. Though, PMS is managed by a professional portfolio managers, it has potential to address the personal preferences tailored into the investment portfolio giving the freedom and flexibility required for achieving the financial goals. This is typically a high-end product meant for high net-worth individuals (HNIs) because it needs some significant minimum investment.

Portfolio management is different from investing in mutual funds. In mutual funds, the investments of various people are pooled together and the fund manager will invest it as a whole. But in portfolio management, the individuality of each client’s portfolio is preserved and it will be tailor-made according to the requirements of the client.

Why Portfolio Management Services?

Today, the financial market is increasingly complex and managing your own portfolio will take up a lot of your time and effort. There are situations when you don’t have time or knowledge to explore the best investment alternatives in the market. This is a common problem faced by many wannabe investors like you. At this juncture, portfolio management services can help you get out of this dilemma. So you can simply assign your investments to portfolio management services who will report to you regularly on your portfolio performance. Don’t feel lost in this complex world of investments. Let the experts do their job.

But why should you opt for PMS? Here are a few aspects on which portfolio managers say they score on top like:-

Balanced Portfolio: Professional research and advice will help you with information on the best investment options and ideas for your portfolio.

Maximum Returns, Minimum Risks: Portfolio management services assure you of the best downside protection for your portfolio. You will benefit with practical financial advice that can help convert all paper gains into real profits in the shortest time.

Adjust Your Portfolio To Market Trends: When you avail of portfolio management services, you enjoy greater freedom and flexibility to diversify your investments.

Personalized Advice: Get investment advice and strategies from expert Fund Managers.

Professional Management: Money management services that work for you.

Continuous Monitoring: You are informed about your investment decisions.

Hassle Free Operation: High standards of service and complete portfolio transparency.

Greater control: You have greater control over the asset allocation in PMS. Here the portfolio can be customized to suit your risk-return profile

Transparency: PMS provides comprehensive communications and performance reporting that will give investors a complete picture regarding the securities held on his behalf.

Types of PMS:

 There are two types of portfolio management services(PMS):

Discretionary PMS and
Non-discretionary PMS  

In discretionary portfolio management, the portfolio manager individually and independently manages the funds of each client in accordance with the needs of the client.

But in non-discretionary portfolio management, the portfolio manager manages the funds in accordance with the directions of the client. The portfolio manager cannot make buy-sell decisions at his own discretion; he has to refer to the client for every transaction.

Services provided in Portfolio Management:

So you are lured by the sales pitch and entrusted your money to a PMS. What can you now expect from this service?

1.Portfolio managers work as a personal relationship manager with whom the client can interact at any time as per his preference.

2.To discuss any topics regarding money or saving, the client can interact with his portfolio manager on a monthly basis.

3.The client can also discuss on any major changes that he wants in his asset allocation or investment strategies.

4.Portfolio management service (PMS) handles all types of administrative work such as opening a new bank account or dealing with a financial settlement or depository transaction.

5.For online Portfolio management service (PMS), the client receives a User-ID and Password that helps him in getting online access to his portfolio details as and when he wants.

6.Portfolio management service (PMS) also helps tax planning and tax management of client based on detailed statement of transactions in his portfolio.


Thus if you wish to reap substantial benefits from your various investments & want your small pile of investment to grow, the right portfolio management service(PMS) is a prerequisite for it.

PMS is definitely for the moneybags; evaluate it well from several perspectives like expertise, track record and investment philosophy, flexibility, operational efficiency and the fee before you hand over the reigns.

It could end up being a well paying affair if you get this one right. So if you are ready to put your nest egg & step into this world, put each step with a fine-toothed comb.


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