PMS Services
What are portfolio management services?
In order to assist investors in achieving their financial objectives, portfolio management services, or PMS, provide customers personalised investment options. Investment portfolios are built by portfolio management services using a variety of investment options, and the investment portfolio is managed by portfolio managers.
By concentrating on the time horizon, risk profile, and investment objectives, portfolio management services assist investors in maximising profits over time.
Many High-Net-Worth Individuals (HNIs) choose portfolio management services because custom portfolios are created after taking taxation, liquidity, risk tolerance, and investment horizon into account. Additionally, SEBI registration is required for organisations providing PMS services, preventing fraud and other wrongdoing.
HNIs, HUFs, partnership firms, NRIs, associations of people, sole proprietorships, etc. all favour portfolio management services. A minimum ticket size is specified by portfolio management services for investor portfolios.
What are the types of Portfolio Management Services in India?
Active Portfolio Management:
The goal of active portfolio management is to outperform benchmark indices like the Nifty 50 or the BSE Sensex in terms of returns. The research team chooses the necessary securities, and the portfolio manager actively oversees the investment portfolio.
Passive Portfolio Management:
The goal of passive portfolio management is to replicate the results of a market index, such the Nifty 50. To provide investors with returns consistent with the index it tracks, the fund management monitors and duplicates the stock market index portfolio.
What are the objectives of Portfolio Management?
Capital growth: To obtain higher returns from a professionally managed portfolio, many investors choose PMS. The emphasis is still on risk-adjusted investment returns.
Many people choose PMS in order to have a consistent source of income. The capital protection and steady investment returns are the portfolio manager’s major goals.
Liquidity: To turn their investments into cash as quickly as possible, many investors choose PMS. If they require funding to launch a firm, it is essential. In these circumstances, the portfolio manager creates tailored portfolios to meet the liquidity requirements of clients.
Tax Planning: To improve the after-tax return on investments, PMS concentrates on tax planning. It is beneficial to build a portfolio after researching the tax benefits of various investments. Simply said, PMS provides the benefits of capital growth and greater after-tax investment returns.