Secrets of Portfolio Management Service

Are you ready to learn more about the Portfolio Management Service?

PMS, or Portfolio Management Service, is a service offered by a portfolio manager or an investment company as a whole with the intention of achieving maximum ROI and decreasing your risk profile. Your dream portfolio must be a mix of stocks, fixed income, commodities, real estate, other structured products, and cash. And if you do not have time to manage all this on your own, then it is a good idea to hire PMS. Also, look for a surprise at the end; we have made another detailed study for you that will help you make an informed decision.

Portfolio Management Services are provided by licensed investment professionals who are well-versed in the field of investment, specialize in knowing the investment objectives of the investor, and can provide them with various strategies to achieve those objectives. In comparison to an amateur, a professional PMS provider can assist you in making an informed decision about investing in securities.

These services are usually offered to high-net-worth individuals or HNIs. Because PMS has to diversify your portfolio among different schemes and funds at a very high level so that you get maximum wealth creation at your desired age and time. The service is customized as per the investor’s ROI goal and willingness to take risks. The portfolio manager assigned to you by the PMS will help you at every step of your journey to create wealth.

Types of Portfolio Management Services

You must have heard of active portfolio management, passive portfolio management, discretionary portfolio management, and non-discretionary portfolio management whenever you look for Portfolio Management Services. So let’s take an overview of what they really mean.

• Active: If higher profits, and less risk profile in the shortest possible time is your aim, then this service is for you. PMS or the portfolio manager assigned to you will change the strategies every now and then to keep you on the track of maximum ROI.
• Passive: These are generally fixed methods and generally lead to lower returns. These generally work in relation to current market trends.
• Discretionary: In these types of PMS, the control is in the hand of the appointed portfolio manager and he/she is free to change any strategy anytime. This is the best option for clients with limited time to manage their own portfolio. The client has very little to none role in the investment process.
• Non-discretionary: In these types of PMS, clients can play an active role in the investment process. The investor can decide when and what to invest, can give inputs, and much more. The PMS that appoints the portfolio manager can advise the client and the final call is in the hands of the investor. So, if you have time and some knowledge, go for these types of non-discretionary services.

Strategies to Develop the Best Portfolio Management Services!

It all depends on the investor’s individual needs, like how much ROI he or she wants, their risk appetite, and their budget, and then the PMS will:

• Plan a Strategy: Planning the first step of PMS is making the IPS which simply means investor policy statement. It defines how much risk the investor can take, what ROI he or she is looking at, and what is the ultimate goal.
• Execute it Perfectly: Now comes the execution part. In the execution part, the portfolio manager will allocate your fund in different assets to aim towards working in accordance with the IPS.
• Adapt According to Market Trends: You cannot sit back and relax after you have allocated your funds. You have to keep monitoring the performance of your portfolio and make necessary changes whenever applicable. The portfolio manager will make the changes if needed or keep it as it is if it is working perfectly in accordance to the investor’s goals.

PMS vs. MF (Don’t Get Confused)

If you are confused about PMS and MF, then let us give you an overview:

Both have different customization methods, the engagement rate of the investor, fee structures, asset ownership, and investment sizes.

• PMS offers a higher level of customization tailored to the specific goals of the investor while MF only allows for the classification and diversity of funds.
• PMS offers more engagement rate between investors and the portfolio manager while in MF you have less engagement rate and almost no interaction with the portfolio manager.
• As PMS offers more customization and engagement, it generally demands a share in profile while MF has less customization and engagement rate, the charges are fixed and lesser than PMS.
• Investors have direct ownership of the shares in PMS while under MF investors will get units in the form of investment.
• PMS demands heavy capital investment while MF can entertain any amount of capital.

Is PMS a good option, and how can it benefit you?

If you have a high income and are confused about its management, then PMS is for you. The benefits of PMS include professional advice, a lower risk profile, increased ROI, customized services based on your needs, and convenient trade execution, as you only need to contact your portfolio manager and he or she will do the rest.

How to find the best PMS

• Good established PMS has a proven track record to show when they convince you to invest through them. So, always check their model portfolio to understand what they have done for their clients so far.
• Always do a thorough check of the portfolio manager that PMS intends to assign you. Because the performance of your portfolio will depend on the manager’s ability to outperform the market. Education, experience, and reviews of the portfolio manager will ultimately point to the competency and expertise that they bring to your investment.
• A good PMS should have different strategies to outperform the market and reach your desired goal. They should have transparency in their strategies.
• The fee arrangement of the PMS is usually based on the performance of the manager. The profit-sharing of returns is typically 20 percent. Fees charged for the management of the fund should be between 1 to 3 percent.
• Transparency and customer support is a must. If the PMS does not provide good customer support, then there is no point in giving your hard earned income to them for investment.

Recent Changes in the PMS Industry in India to look for!

SEBI makes changes from time to time for the benefit of investors. Some of the most recent changes are that no upfront fees will be charged, a maximum exit load of 3 percent in the first year, direct interaction with the client to avoid intermediaries, and many more. Get in touch with the most reputable PMS provider to learn more.

The Bottom Line

We are sure our detailed study must have helped you reach an informed decision regarding what PMS is and how it can help you create wealth. And now you must be waiting for the surprise that we mentioned in the first part of our detailed study. So, the surprise is, we have done another detailed study for you and have found one of the most trustworthy and reputable PMS providers, WC Securities Pvt. Ltd., that has 1000+ Crores of AUM, 2000+ Happy Clients, more than 20 products to choose from, and most importantly, more than two decades of wealth management experience.

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So, what are you waiting for? Call WC Securities Pvt. Ltd. and make an informed decision.