Portfolio Management Services

• What is Portfolio Management Services in India?

  Portfolio Management Services (PMS) in India refers to a specialised investment service
  offered by expert portfolio managers, focused at providing customised investment solutions
  to meet individual investment objectives based on risk tolerance, diversification, capital
  available to invest, etc. There are multiple portfolio management companies in India who
  offer this service, focusing on generating high returns through a well-diversified investment
  strategy.

  PMS is known for the high-degree of customization offered which can be discretionary or
  non-discretionary, depending on the fundhouse.

  “Aequitas India Opportunities Product” the PMS offered by Aequitas has generated a CAGR
  38% over the last 10 years as of Aug 2023.

• How Portfolio Management Services Works?

  Portfolio Management Services works by creating and managing a customised investment portfolio based on the client’s risk tolerance, investment goals, and financial situation. After an initial assessment, the portfolio manager actively monitors the portfolio, making strategic decisions such as buying or selling assets to maximize returns or mitigate risk. Clients are provided with regular updates and performance reports. Learn more.

• What are the Different Types of Portfolio Management?

  There are typically 4 types of portfolio management services available, which includes Active, Passive, Discretionary and Non-discretionary portfolio management services:

  Active Portfolio Management: Central to this type of portfolio management is the ambition to generate returns that outpace market averages. Active managers are keen on buying stocks when they’re undervalued and selling them once their value rises above the average. The role of the portfolio manager is crucial here, as they consistently survey the stock market to unearth the most promising investment opportunities. While this approach can yield substantial returns, it’s also fraught with high risks. It’s an apt choice for those with a penchant for risk and an eye on significant returns.

  Passive Portfolio Management: This strategy stands in contrast to active management. Advocates of this approach are firm believers in the efficient market hypothesis, asserting that a company’s inherent value is always mirrored in its stock price. Passive managers predominantly opt for index funds, known for their minimal turnover and enduring value. This portfolio management style promises consistent, long-term rewards at a diminished cost, making it a go-to for novices or those in pursuit of steady growth.

  Discretionary Portfolio Management: Here, investors hand over the reins of their investments to a broker or manager. After furnishing the initial funds and delineating their financial objectives, the rest is managed by the portfolio manager, from cherry-picking stocks to finalising trades. This service is tailor-made for those who, either due to time constraints or a lack of expertise, prefer not to be actively involved in their portfolio’s day-to-day management.

  Non-Discretionary Portfolio Management: This portfolio management style is more of a partnership. While the manager offers insights based on prevailing market conditions and the investor’s aspirations, the ultimate investment decision is the investor’s prerogative. It’s an ideal pick for those keen on retaining a say in their investments while also tapping into professional advice.

  Aequitas offers Discretionary Portfolio Management service.

• What are the Functions of Portfolio Management Services ?

  The core functions of Portfolio Management Services include asset allocation, risk management, and performance evaluation. The portfolio manager identifies potential investment opportunities and distributes the assets across various financial instruments to achieve a balance between risk and return. Additionally, performance is continually assessed to adjust strategies and meet the client’s financial objectives. Learn more

• What are the Advantages of Portfolio Management Services ?

  One of the main advantages of Portfolio Management Services is the professional expertise that clients gain access to, which often leads to better investment decisions. PMS services can offer tailored investment solutions that align closely with an individual’s financial goals. Furthermore, active portfolio management often results in higher returns compared to traditional investment avenues.

  1. Personalised Attention: PMS offers a more personalised approach to investing, ensuring that the client’s unique needs and risk tolerance are taken into account.

  2. Transparency: Clients receive detailed reports and updates about their investments, ensuring they are always informed about where and how their money is invested.

  3. Flexibility: PMS services allow for adjustments based on market conditions, ensuring that the portfolio remains aligned with the client’s objectives.

  4. Diverse Investment Opportunities: PMS often provides access to a wider range of investment opportunities, including those not readily available to the general public.

  5. Tax Efficiency: With active portfolio management, there’s a potential for better tax optimization strategies, which can enhance post-tax returns.

  6. Direct Ownership: Unlike mutual funds, in PMS, clients have direct ownership of the securities in their portfolio, giving them more control.

  7. Dedicated Portfolio Manager: Clients benefit from the expertise of a dedicated portfolio manager who closely monitors and manages their investments.

  8. Customised Strategies: Based on individual risk profiles and investment goals, PMS can craft strategies that are tailor-made for each client.

  9. Real-time Monitoring: Advanced tools and technologies are often employed to monitor portfolios in real-time, ensuring timely interventions when needed.

  10. Higher Potential Returns: Due to the active management and expertise involved, PMS often has the potential to deliver higher returns compared to passive investment strategies.

  The Disadvantages of Portfolio Management Services
  However, the disadvantages of Portfolio Management Services should not be ignored. The service generally requires a higher minimum investment, making it less accessible for average investors. Also, the fees charged by portfolio management companies can be substantial, especially in the case of underperforming portfolios, eating into the profits generated.

• Is Portfolio Management Services a Good Investment Option?

  When considering whether Portfolio Management Services is a good investment option, it’s essential to weigh the potential for higher returns against the higher charges and risks involved. It may be suitable for those with a higher risk tolerance and who seek specialized, tailored investment strategies. However, it may not be ideal for every investor. Learn more

• Why Portfolio Management Services Should be Considered for Your Investments?

  Portfolio Management Services should be considered for your investments if you are looking for customized, actively managed investment solutions. These services are particularly beneficial for high-net-worth individuals or institutions with complex financial requirements. It allows for greater diversification and potentially higher returns, although there are higher charges and risks involved. Learn more

• What are Portfolio Management Services Charges?

  Portfolio Management Services charges vary from one provider to another but generally include a management fee, performance fee, and other administrative costs. These fees can be a percentage of the assets under management or a fixed charge. High fees can sometimes offset the benefits of professional management, so understanding the fee structure is crucial for potential clients. Some of the best PMS services in India, including Aequitas, offer competitive pricing along with a strong performance track record.

• How Portfolio Management Services Works?

  Understanding how Portfolio Management Services works is crucial for any investor considering this investment avenue. Essentially, how does Portfolio Management Services work? Here’s the process broken down:

  1. Initial Assessment: A portfolio management company begins by evaluating your financial objectives, risk tolerance, and investment goals.
  2. Choosing the Right Type of PMS: Based on the initial assessment, the company offers either discretionary or non-discretionary services, unless they function in a pre-defined manner.
  3. Discretionary Portfolio Management: In this service, the portfolio manager has the autonomy to make investment decisions on the client’s behalf without needing individual approvals for each transaction. The goal is to achieve optimal returns in line with the client’s risk profile. Aequitas India Opportunities Product (PMS) provides
  discretionary services.
  4. Focus on High Net-Worth Individuals: Portfolio management services in India often target high net-worth individuals, offering them specialised investment solutions.
  5. Bespoke Investment Solutions: Some of the best portfolio management services in India provide tailored investment strategies designed to meet specific financial goals.
  6. Strategic Asset Allocation: The intricacies of how portfolio management services work involve a strategic allocation of assets to maximise returns.
  7. Constant Monitoring: Regular oversight of the investment portfolio is crucial to ensure it aligns with the client’s objectives and market conditions.
  8. Active Management: This involves making timely decisions to adjust the portfolio, aiming to maximise returns and mitigate potential risks.

   

• Types of Portfolio Management – Understand Different Types of Portfolio Management Schemes in India

  When it comes to investing in Portfolio Management Services (PMS) services in India, understanding the various types of portfolio management is essential for choosing the most suitable option. Primarily, the PMS types can be categorised into 4 major types.

  4 Major Types of Portfolio Management Services in India:

  Active Portfolio Management: Central to this type of portfolio management is the ambition to generate returns that outpace market averages. In active portfolio management, active managers are keen on buying stocks when they’re undervalued and selling them once their value rises above the average. The role of the portfolio manager is crucial here, as they consistently survey the stock market to unearth the most promising investment opportunities. While this approach can yield substantial returns, it’s also fraught with high risks. It’s an apt choice for those with a penchant for risk and an eye on significant returns.

  Passive Portfolio Management: This strategy stands in contrast to active management. Advocates of this approach are firm believers in the efficient market hypothesis, asserting that a company’s inherent value is always mirrored in its stock price. In passive portfolio management, passive managers predominantly opt for index funds, known for their minimal

  turnover and enduring value. This portfolio management style promises consistent, long-term rewards at a diminished cost, making it a go-to for novices or those in pursuit of steady growth.

  Discretionary Portfolio Management: In Discretionary portfolio management, the investors hand over the reins of their investments to a broker or portfolio manager to efficiently manage their funds, after furnishing the initial funds and delineating their financial objectives., From cherry-picking stocks to finalising trades, the PMS manager takes care of the rest. This service is tailor-made for those who, either due to time constraints or a lack of expertise, prefer not to be actively involved in their portfolio’s day-to-day management. Aequitas offers Discretionary Portfolio Management service.

   Non-Discretionary Portfolio Management: This fund management style is more of a partnership. In non-discretionary portfolio management, the manager only offers insights based on prevailing market conditions and the investor’s aspirations, the ultimate investment decision is the investor’s prerogative. It’s an ideal pick for those keen on retaining a say in their investments while also tapping into professional advice.

  In addition to this, PMS can also be categorised further based on other factors such as investment strategy, asset class focus, risk tolerance, and investment goals etc, namely: equity portfolio management, fixed-income portfolio management, balanced portfolio management, sectoral/ thematic portfolio management, value portfolio management, growth portfolio management, alternative Investment Portfolio Management, tax-efficient portfolio management.

  Conclusion: A thought through call must be taken by an investor based on the personal investment style , thereby choosing a top PMS in India offering the best portfolio management services.

• Types of Risks in Portfolio Management and Key Risk Management Strategies

  When it comes to portfolio management, understanding what is risk in portfolio management is pivotal. In essence, risk in portfolio management refers to the uncertainty that an investment will not achieve its expected returns. The risks involve various factors that can influence the value of the portfolio, ranging from market volatility to currency fluctuations. Integral to this is the concept of risk and return in portfolio management. Typically, higher returns come with higher risks, emphasising the crucial relationship between risk and return in portfolio management.

  Types of risks in portfolio management

  1. Market Risk: This is the risk associated with the overall market movements. It’s the possibility that an investment will lose value because of general market declines, irrespective of the specific attributes of a particular security. Factors like geopolitical events, interest rate changes, and economic downturns can contribute to market
  2. Credit Risk: This risk arises when a borrower fails to meet their obligations to repay a For investors, it’s the risk that the issuer of a security (like a bond) will default, resulting in a loss of principal and unpaid interest.
  3. Liquidity Risk: This pertains to the ease with which an asset can be converted into cash without affecting its price. High liquidity risk means an asset cannot be sold quickly without incurring a significant loss in value.
  4. Operational Risk: This is the risk of loss resulting from inadequate or failed internal processes, people, and systems, or from external It includes risks from system failures, fraud, or business disruptions.
  5. Concentration Risk: This risk is associated with having a significant portion of a portfolio’s investments concentrated in a specific asset class, sector, or individual This risk arises when a PMS portfolio has an imbalanced allocation, focusing heavily on a limited number of stocks, sectors, or asset types.
  6. Other Risks: While the above are some of the primary risks, there are other risks like inflation risk (loss of purchasing power), interest rate risk (changes in interest rates affecting the value of investments), and currency risk (fluctuations in foreign currency exchange rates affecting the investment’s value), among others.

• Risk Management in Portfolio Management

  Addressing the above-mentioned risks requires robust risk management strategies in portfolio management, which involves identifying, assessing, and mitigating risks. This is where the expertise of top portfolio management companies in India or a dedicated PMS company in India can be invaluable. These firms use diversified strategies to manage risk, such as:

  1. Diversification: Spreading investments across different asset classes, sectors, industries, and geographic regions. Purpose: Reduces the impact of poor performance in any single investment or sector on the overall Diversification spreads risk and enhances stability.
  2. Asset Allocation: Strategic distribution of investments among different asset classes (equities, fixed-income, cash, ). Purpose: Balancing risk and return by adjusting the allocation based on market conditions and the investor’s risk tolerance. Proper asset allocation ensures the portfolio is not overly exposed to any single asset class.
  3. Stop-Loss Strategies: Setting predetermined price levels at which specific securities will be sold to limit losses. Purpose: Prevents significant losses in case a particular investment’s price falls below a certain threshold. Stop-loss orders are executed automatically when the security’s price reaches the specified level.
  4. Hedging: Using derivatives like options or futures contracts to offset potential losses in the Purpose: Protects the portfolio from adverse market movements. For example, a portfolio manager might use options to hedge against potential declines in the value of the portfolio’s holdings.
  5. Stress Testing: Evaluating the portfolio’s performance under various adverse scenarios (market crashes, economic downturns).Purpose: Helps portfolio managers assess how the portfolio might perform under extreme conditions and make necessary adjustments to mitigate potential losses.
  6. Liquidity Management: Ensuring that the portfolio maintains sufficient liquidity to meet investor redemptions and unexpected market Purpose: Avoids the need to sell illiquid assets at distressed prices, preserving the portfolio’s value during market downturns.

  Knowing the types of risks and understanding the concept of risk and return can guide you in selecting the right PMS service in India, tailored to match your risk tolerance and investment objectives.

  At Aequitas, we are cognizant of these risks associated with the asset class that we operate in. We have a very disciplined approach for portfolio construction and being value investors, all our investment decisions factor in a significant margin of safety. Our in house research team with their process driven approach analyses and monitors companies to identify and mitigate company specific risks including corporate governance concerns.

• Functions of Portfolio Management Services in India

  To make informed investment decisions, it’s vital to understand the functions of portfolio management and the role of a portfolio manager in India. Essentially, the core functions of portfolio management include asset allocation, risk assessment, and performance evaluation. Asset allocation involves diversifying investments across various asset classes like equities, bonds, and other financial instruments to balance risk and reward. Risk assessment is crucial for identifying potential market uncertainties and strategizing ways to mitigate them. Performance evaluation helps in reviewing how well the portfolio is doing against the pre-set benchmarks. These functions highlight the various roles and strategies portfolio managers employ to ensure optimal returns and risk management for their clients:

  1.  Risk Diversification:

  An essential function of portfolio management is to access the risk and to spread risk related to the investment of assets. Diversification can occur across different securities and industries, effectively reducing risk. This limits your chances of being significantly impacted if a specific type of asset you’ve invested in takes a hit, as diversification will protect the rest of your investments, which are spread across various assets.

  2.  Asset Allocation:

  This function refers to the strategic distribution of a client’s investment portfolio among different asset classes such as equities, fixed-income securities, cash, real estate, commodities, and alternative investments. The goal of asset allocation is to optimize the portfolio’s risk and return profile based on the investor’s financial goals, risk tolerance, and investment horizon.

  3. Beta Estimation:

  Portfolio managers estimate the beta coefficient, which measures and ranks the systematic risk of different assets. The beta coefficient is an index of systematic risk and is useful for the final selection of securities for investment.

  4. Rebalancing Portfolios:

  Rebalancing involves periodically adjusting portfolios to maintain their original conditions. Adjustments can be made through methods like the ‘Constant proportion portfolio’ or the ‘Constant beta portfolio’. The former maintains relative weightings in portfolio components based on price changes, while the latter adjusts to the values of component betas in the portfolio.

  5.  Strategies:

  Portfolio managers may adopt various strategies as part of efficient portfolio management. Some of these strategies include:

  • Buy and Hold Strategy: Where a portfolio of stocks is built and not disturbed for a long period.
  • Indexing: This strategy attempts to replicate the investment characteristics of popular bond market measures.
  • Laddered Portfolio: Bonds are selected so that their maturities are spread uniformly over time, distributing funds throughout the yield curve.
  • Barbell Portfolio: Similar to the laddered portfolio, bonds are chosen to spread their maturities uniformly, aiming to distribute funds across the yield curve and benefit from lower transaction costs due to better

  At Aequitas, the fund manager follows a disciplined investment philosophy to identify the right set of stocks to add to the portfolio, focussed on long-term strategy to reap Multibagger returns. The investment strategy is primarily built on 3 key pillars – Growth, Value & Contrarian.

  Growth: The company has to be a growth driven company with above average growth potential for the next 3-5 years. Markets reward a higher PE multiple for growth companies. Value: The valuation has to be reasonable. This is important because there has to be potential for re-rating. A combination of EPS growth and PE re-rating leads to multibagger returns.

  Contrarian: Contrarian approach does not mean doing the opposite of others, rather, it means doing things differently. Buying in popular names will not provide multibagger returns.

  Conclusion

  Fund Managers of the best portfolio management companies in India, like Aequitas follow a disciplined approach to focus on the primary research, done in-house, without relying on 3rd party market research or other market narratives. Based on predefined parameters, the screening is done to identify potential stocks. Further due diligence is done after discussing

  with the company management, attending AGMs, vetting their annual reports, understanding challenges with corporate governance, based on which filtered stocks get added to the portfolio at the right valuation. And the research continues on existing stocks as well as for any potential stock for the future.

• 10 Important Features of Portfolio Management Services (PMS)

  Customization :

  One of the key features of portfolio management services is the customization they offer to suit individual investment goals and risk tolerance, allowing portfolio managers to tailor strategies according to specific clients – Aequitas India Opportunities Product offers a bespoke portfolio for clients.

  Asset Allocation :

  Effective asset allocation is one of the core portfolio management features. It involves distributing investments across various asset classes such as equities, fixed-income securities, cash, real estate, commodities, and alternative investments, to balance risk and reward. 

  Risk Assessment :

  Accurate risk assessment is crucial for making informed investment. This is often provided through portfolio management services in India and around the globe.

  Professional Management :

  Access to expert advice and management skills is among the valuable active portfolio management features, especially in complex. The research team at Aequitas is constantly in touch with the management team of companies, attending AGMs and interacting with industry peers to stay updated on.

  Effective Research based decision making:

  Research analysts & fund managers constantly monitor industries and companies to build a report that helps in taking most productive decisions. At Aequitas, all the research done is primary, to ensure there is no biased opinion taken into account.   

  Discretionary and Non-Discretionary Services :

  The availability of both discretionary and non-discretionary services is a distinct characteristic of portfolio management. Discretionary portfolio management services in India, for example, allow the portfolio manager to make investment decisions without client intervention. Aequitas India Opportunity Product (PMS) provides discretionary services.

  Transparency :

  Modern portfolio management often includes transparent reporting features, enabling clients to track performance, fees, and transactions.

  Aequitas timely shares the factsheet and NAV statements with the client. For PMS, the client has access to their portfolio.

  Performance Evaluation :

  Ongoing performance evaluation against benchmarks is a crucial portfolio management feature for determining the effectiveness of investment

  As of 30th October, 2024, Aequitas PMS has generated 10 year CAGR 27% vs CAGR 13% (Nifty TRI)

  Diversification :

  Diversification is a critical PMS feature where you want to limit your exposure to a certain stock, sector, asset class as it helps in reducing risks, minimizing loss while maximizing potential returns, a staple in top PMS in India.

  Cost-Effectiveness :

  While some services may be costly, the PMS company often aims to offer a cost-effective management strategy that justifies the fees with consistent portfolio growth, expert guidance, and tailored investment solutions.

  Adaptability :

  The ability to adapt to market changes and modify strategies accordingly is a distinguishing feature of high-quality portfolio management service.

• How to Perform SWOT Analysis of Portfolio Management Services

  Performing a SWOT analysis of portfolio management services can be a vital exercise for investors, financial analysts, and even the portfolio management companies themselves. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and this analysis aims to identify these elements as they relate to a specific service offering. Here’s how to go about it:

  1. Strengths: Start by identifying the strong points of the portfolio management service. This can include things like a proven track record, experienced management team, a wide range of investment options, or cutting-edge technology platforms. Consider any unique selling propositions that set the service apart from
  2. Weaknesses: Examine the areas where the service falls short. This could be related to high fees, limited investment options, lack of transparency, or poor customer Identifying these can provide insights into what needs improvement.
  3. Opportunities: Look for external factors that could offer future advantages for the portfolio management This could be regulatory changes favouring investment, economic trends that can be capitalized on, or new markets that can be tapped into.
  4. Threats: Finally, consider external challenges that could jeopardize the service’s These could include changes in regulations that make operation more difficult, economic downturns that could affect investment returns, or increased competition from other providers offering better or more cost-effective solutions.

  By conducting a SWOT analysis of portfolio management services, stakeholders can gain a comprehensive view of the current state of the service, as well as actionable insights for future strategies and decisions.

• What are Portfolio Management Services Charges?

  When considering investment in portfolio management services in India, it’s crucial to understand the portfolio management services charges involved. These charges can significantly impact the net returns on your investment.

  Types of Portfolio Management Service Charges

  The fee structure generally comprises three types of charges: Management Fees, which are the annual fees for managing your portfolio; Performance Fees, often levied when the portfolio outperforms a specified benchmark; and Entry or Exit Load, which are one-time fees charged either when you invest or withdraw from the portfolio.

  1. Management Fees: Management fees are the annual charges that investors pay for the professional management of their investment portfolios. These fees are essential for compensating the portfolio managers for their expertise, research, time, and the resources they invest in monitoring and adjusting the portfolio to align with the investor’s objectives and market conditions.
  2. Performance Fees: Performance fees come into play when the portfolio’s returns exceed a predetermined benchmark or target. The rationale behind these fees is to align the interests of the portfolio manager with those of the If the portfolio performs exceptionally well, surpassing the set benchmark, the manager is rewarded with a performance fee, emphasising their incentive to achieve superior returns.
  3. Entry or Exit Load: Entry and exit loads are one-time fees that investors encounter either at the beginning or the end of their investment tenure. An entry load is charged when an investor initially invests in the portfolio, covering costs related to onboarding, administrative processes, and initial setup. Conversely, an exit load is levied when investors decide to withdraw their funds before a specified period. This fee acts as a deterrent for premature withdrawals, ensuring that investors remain committed to their investments for a predetermined

  Many portfolio management companies in India offer a variety of fee structures tailored to the services provided and the complexity of the portfolio. Usually, the charges vary from company to company and also depend on the type of portfolio management service chosen. Some PMS services in India may offer a competitive fee structure for large portfolio sizes, while others may provide additional services like tax consultancy included in their fee. Before choosing a portfolio management service, it’s crucial to compare their charges and see how they align with the portfolio’s performance. That way, investors can find the best PMS funds in India that not only offer optimal returns but also provide value for the fees charged. Understanding the portfolio management services charges can help you make an informed decision and manage your investments effectively. You must look at the return on your investment, evaluating the fees charged whether it justifies the returns generated.

  Aequitas’ charges a 2% fixed management fees and 10% performance fees based on high water mark.

• Is Portfolio Management Services a Good Investment Option?

  The question of whether portfolio management services are good as an investment option often depends on various factors, including your financial goals, risk tolerance, and investment horizon. Generally speaking, the core advantages of portfolio management services include expert management of your investments, tailored strategies, and the

  possibility for higher returns, making it an attractive option for high-net-worth individuals and institutional investors. Many consider it among the best investment options due to its targeted and professional approach.

  However, it’s essential to choose the right service provider for maximum benefit. The top PMS in India offer a range of services and have an excellent track record of delivering substantial returns. With numerous PMS companies in India, it can be challenging to find the perfect fit, but it’s important to look for companies with a solid history of performance, a transparent fee structure, and investment options that align with your financial goals.

  Aequitas PMS has generated a CAGR 38% over 10 years as of Aug 2023 and has many investors who have stayed invested since the beginning and yielded maximum benefits. The rich experience of fund managers and the stringent investment philosophy has helped Aequitas Portfolio Management Service beat the market indices handsomely. Aequitas encourages long-term investment strategy and cherishes 1-1 relationships with clients with utmost fairness and transparency.

• Why Portfolio Management Services Should be Considered for Your Investments?

  The question of why portfolio management services should be part of your financial strategy is an important one, especially in the complex and volatile investment landscape of today. Portfolio management services offer several advantages, including professional expertise, personalised investment strategies, and ongoing management to maximise returns and minimise risks. By employing these services, you can benefit from the deep market knowledge and analytic prowess of experienced portfolio managers.

  Importance of Portfolio Management

  PMS services in India have become increasingly popular, catering to various types of investors, from high-net-worth individuals to institutions. They often come with a variety of asset classes and investment vehicles, giving you a diversified portfolio tailored to your specific risk tolerance and financial goals. Several firms have been recognized as providing some of the best portfolio management services in India, offering value-added features like tax consultancy, real-time performance tracking, and transparent fee structures.

• How to Choose the Best Performing PMS Schemes in India

  Selecting the best performing PMS schemes in India can be a daunting task given the multitude of options available. However, there are several critical factors to consider that can guide you in making an informed decision.

  1.  Track Record:

  • It’s essential to review the past performance of the PMS scheme over various market cycles. A consistent history of strong returns, especially during market downturns, can be a good indicator of the scheme’s resilience and effective

  management. While past performance is not a guarantee of future results, it provides insights into the scheme’s ability to navigate different market conditions.

  2. Expertise of the Manager:

  • The portfolio manager and their team play a pivotal role in the scheme’s Look into their professional background, years of experience, and any notable achievements in the finance sector. Their investment philosophy should resonate with your financial goals and risk appetite. A team with a proven track record and a clear investment strategy can be more reliable.

  3.  Fee Structure:

  • While it’s natural to seek expert management for your investments, it’s equally important to understand the costs involved. High management fees can significantly erode the net returns on your investment. Compare the fee structure of different PMS providers and ensure that the charges align with the services offered. Remember, the cheapest option isn’t always the best, but neither is the most expensive if the returns don’t justify the

  4.  Asset Allocation Strategy:

  • Diversification is a fundamental principle of A well-diversified portfolio spreads investments across various asset classes, such as equities, bonds, and commodities, reducing the impact of a poor-performing asset on the overall portfolio. Ensure that the PMS scheme’s asset allocation strategy aligns with your investment horizon and risk tolerance. A scheme that is overly concentrated in one asset class might expose you to unnecessary risks.

  5.  Transparency and Customer Service:

  • Effective communication is the cornerstone of a successful investor-manager The PMS provider should offer regular updates on portfolio performance, changes in asset allocation, and any significant market developments. Additionally, assess the ease of reaching out to the provider for queries or concerns. A provider that values transparency and customer service will prioritize keeping you informed and addressing any issues promptly.

  Aequitas PMS has generated a CAGR 38% over 10 years as of Aug 2023 and has many investors who have stayed invested since the beginning and yielded maximum benefits. The rich experience of fund managers and the stringent investment philosophy has helped Aequitas Portfolio Management Service beat the market indices handsomely. Aequitas encourages long-term investment strategy and cherishes 1-1 relationships with clients with utmost fairness and transparency.