Portfolio Management Companies provide licensed and professional investment services to a niche of long-term investors. They invest, on behalf of clients in a customised portfolio of stocks, bonds, mutual funds and other securities pertaining to client-specific investment goals and horizon

How to invest in Portfolio Management Services

  1. Research and select a PMS provider: To begin, it’s important to have a precise view of your investment objectives, horizon and risk tolerance. Awareness of these factors will help you choose an appropriate PMS provider. Doing extensive research on a firm is important to ensure it has a decent track record, experienced portfolio managers, and is transparent about its operations.
  2. Understand types of PMS Offering Types and Their Investment Strategies: Types of PMS include discretionary, non-discretionary and advisory. Investor authority in each type differs from the other. Investing strategies also differ from company to company. A few strategies are growth investing, value investing and multi-cap investing. One must narrow down their preferred type of PMS while being cognizant of the above
  3. Verify Eligibility: Who can invest in PMS? Investors in PMS include UNHIs, HNIs, Mutual Funds and other institutional investors. SEBI has prescribed a minimum investment corpus in PMS to be INR 50 Lakh for individuals to be eligible for PMS services. However, it must be noted that the starting minimum investment amount can vary from fund-house to fund-house.
  4. Review fee structure and charges: Charges associated with PMS services include management fees, performance fees and other charges that may be associated with the structure of your portfolio. These must be reviewed to ensure you’re getting an economical deal
  5. Open a PMS Account: Once the Portfolio Management Company has been selected and the investment strategy has been decided upon, you must create an account by filling out the necessary paperwork, this involves filling out an application, KYC (Know Your Customer) documents and signing Company-Client agreements.
  6. Monitoring and Communicating : Investors should review and monitor performance of their portfolio to understand if returns are being met and to what extent. They must also communicate with portfolio managers about changes that arise concerning their investment horizon or risk appetite

Best PMS Services in India

India has numerous Portfolio Management Companies that offer great PMS investing opportunities that consistently have outperformed their benchmark indices. The best PMS services in India for an investor depends on their individual investment goals and vision. 

Conclusion: Is PMS a good investment?

PMS would be a great investment for any investor who is looking to gain returns by utilising experience from seasoned portfolio managers while also maintaining certain authority and visibility over their portfolio. Investors who prefer a more customized approach and are looking for transparency stand to benefit from these services.

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