In the complex financial market today, every investor has got their specific financial requirements based on their financial goals and risk appetite. Irrespective of this, an investor wants to improve their return on investments (ROI). This needs management of investments to be done by professional PMS Investment Advisors achieve defined investment goals, relieving them from the daily administrative trouble of investments. PMS or Portfolio Management Services is an enabler for addressing such issues. Let us know more about the PMS investment option and benefits of investing in PMS funds. Benefits of Investment in PMS Portfolio management is discreetly managing your investment portfolio just by selecting the good range of the investment alternatives in a right segment and shifting those options regularly in your investment portfolio. Given are the top benefits of choosing the best PMS services in India- Make Right Investment Quite often, people accumulate their assets and make the investments in a most casual and unplanned way. An investment portfolio offers you the comprehensive glance of these assets and allows investors to know the available spaces in a particular investment plan looking at their financial goals. The PMS service enables users to make wise and clear decisions about the portfolio. Track Your Performance When you integrate all your investments in one single portfolio helps users to track down the investment portfolio performance and assets. For example if you see your investments isn’t offering strong returns then you may sell that asset & reinvest in the profitable business. With Portfolio Management Service, you can re-adjust your assets that are based on the life objectives. Invest in the Disciplined Way The primary goal of the Portfolio management is to enhance and improve your profit returns. Thus, if you make investments quite often it will provide you a strong and healthy return. For example, if you have a small or sufficient amount of investment funds and are looking to make investments each month, you can start with the systematic investment plan. Manage Liquidity Without any doubt requirements for the funds may arise anytime. Hence, portfolio management is the right investment service that allows investors to plan the investment in a way they will sell off some funds when they need it. Balance Risk and Reward It is important to know that not all kinds of assets are made equal. Some come with safety and some can be very risky. However, sometimes funds invested with a risk can bring high returns & safer investment gets low returns. The PMS investment Advisors allows users to maintain the right balance between different investments as per your requirements. Improves Financial Knowledge It’s the best thing you will know about how an investment or stock market actually works. Even though you opt for discretionary PMS (assets managed by a fund manager) type. The professional PMS services in India will enable you to improve your knowledge about different types of investments and their interactions. Final Words Looking at the unpredictable nature of the share market, an investor needs strong expertise and thorough research to make a right choice. Managing your investment portfolio isn’t a simple task, this is the reason you must look for the professional PMS Company PMS AIF World.
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Alternative investment funds or AIF cover investments that do not happen through the traditional forms like stocks, bonds, securities, property and cash, among others. Alternative investments examples are hedge funds, commodities, financial derivatives, venture, antique coins, stamps, and paintings.
It is noted that most of the AIF investment advisors raise capital from the high-net worth investors, but there is no cap and institutional investors can also invest in it. Define Alternative Investment Funds Alternative Investment Fund generally refers to a private fund that isn’t available through IPOs or Initial Public Offerings and other types of the public issue, which are valid under the Mutual Funds & Collective Investment Schemes registered with SEBI (Securities and Exchange Board of India). They mostly deal in funds such as private equity, hedge funds, real estate, pooled from foreign or Indian investors, according to the defined investment policy for the investor’s benefits. Such funds don’t include funds registered with SEBI Regulations, 1996 and 1999 to regulate any fund management movements. Investing in Alternative Investment Funds Investments in AIF funds are open to Indian and even foreign investors. It is important to note that the majority of the alternative investment funds seek capital from the high-net worth investors as per the scheme guidelines. Let us check out a few other conditions: · AIF won’t accept any investment value that is below INR 1 crore · This fund won’t collect funds other than private placement · Every alternative investment fund scheme must have the corpus of INR 20 crores at least · Under any scheme there must not be 1000 or more investors · The AIF Investment Advisors should contribute 2.5 % in an initial capital investment Are you looking to invest in the alternative investment funds? No matter whether it is AIF or any financial asset, it is very important that investors know the pros & cons of investing in any fund and the same applies to alternative investment. It is always good to take help of the best AIF Company in India. As these funds do not generally correlate to the stock markets and give you higher diversification and help investors to mitigate volatility. But, return rates from AIF’s aren’t guaranteed, although they have a potential of delivering great returns compared to the traditional investments. But, there are certain fees linked with such types of funds and that are a bit on a higher side. Also, since they have a potential of delivering very high returns, risks with them are also very high. So, it is very important that you go through the terms document carefully and then make the right decision. The final thoughts Before you invest in the alternative investment fund, it is important to go through the fund structure, goals and any associated risk. Make sure you proceed only after you have completely understood every detail about the fund and asset that you are looking to invest in. You can always consult the best AIF Company in India or visit PMS AIF World website, if required. In India, an only way used to create financial assets was to invest your money in the traditional investment categories like bonds, stocks, and real estate. But, with an alarming tribe of the high net-worth investors in our country, there’s a constant rise in demand for the non-conventional investment schemes like AIF investment options.
What are AIF’s? Alternative Investment Funds or AIF’s are a class of the privately pooled vehicle to invest in private equity, hedge funds and real estate. While the AIFs regulations were formulated over 6 years before by SEBI, they have gained acceptance among ultra-rich as robust investible platforms in India. AIFs aren’t covered by the present jurisdiction of any governing body in India, but they are classified and described in detail in the Regulation 2 (1). Investors might find these products a bit complex and will be reluctant in investing in it. The AIF investment advisors play an important role in bridging the knowledge gap. Different Types of AIF Based on the current SEBI classification, the private investment funds are divided in three unique categories and with a minimum qualifying amount for the schemes being INR 20 Crores. An only exception to the rule is ‘angel fund’ that is the subcategory of first Category of AIFs, since they have the lower qualifying criteria as per the fund corpus at INR 10 crores. Check out the table to understand it better: Category I Angel Funds Social Venture Funds Infrastructure Funds Venture Capital Funds SME Funds Category II Debt Fund Private Equity Category II Pipe Funds Hedge Funds AIFs mainly pitch in the investments under 3 broad categories. These categories will be granted registration on the same platform with the board. You can approach AIF Investment Company to get access to the data on various schemes and strategies. Investing in AIFs – Things to Know Investment in all 3 categories will be subject to following conditions; · Every AIF scheme will have corpus of INR 20 crore; · AIF can raise funds from investor whether foreign or Indian or NRI by its units; · The sponsor or the manager will have the continuing interest of not under 2.5% or INR 5 crore, whichever comes lower in a form of the AIF investment and this interest will not be through a waiver of the management fees. · AIF will not accept an investment value from the investor below INR 1 crore. · Fund will not solicit and collect funds other than private placement; · No AIF scheme will have more than a thousand investors; · Manager or sponsor will disclose their AIF investment to the investors; Final Words As we can see, alternative investments are growing in popularity among the masses and making a way in the portfolios of high-net worth individual investors. Thus, if you are among them, you should understand the benefits and restrictions when investing in the Alternative Investment Funds through PMS AIF World. Alternative investments generally don’t correlate to the stock market that means they add good diversification to the portfolio and help to mitigate volatility. Whereas, just like other investment options, in AIFs, the rate of return isn’t guaranteed, there’s the potential of going higher than the traditional investments via inflation hedging and strong diversification. Portfolio Management Services in short PMS is a highly Advanced type of Investments options for NRI clients or High Networth Clients (HNI). In today's post, we will discuss various parameters that will help to choose the best PMS in India. Without wasting any time, let us start: What is PMS? Portfolio Management is all about managing your portfolio or investment tactfully, by choosing the right blend of investment options and continuously shifting it in your portfolio. In PMS, there is virtually nothing to do. Your whole portfolio will be managed by your investment professionals. These experts have a complete knowledge about your investment criteria and draw the perfect strategy. It is the responsibility of a portfolio manager to do all the research on the stocks and mutual funds and takes appropriate decisions to allocate the funds. They will keep proper track of the activities and ensure that investors are informed about any developments in a portfolio. After understanding the meaning and role of portfolio management, it is also important to know the process of portfolio management. I know you might be having several questions like what these experts do with your money? How they manage our portfolio. If you're really serious about your investment, you have to manage the portfolio in the right way by investing in high performing PMS in India. Let us break down the complete process of the portfolio management service for you. Process of PMS An idea of the portfolio management service is you pass over your portfolio investment to a person who's equipped with right skills and knowledge to execute various investment decisions for you. Knowing that, a portfolio manager will have the complete control of your portfolio. But, you have access to your own portfolio. You can check your demat account whenever you want to and get the information of your investment holdings. One important thing is your trading and demat account will be in your name. Thus, the account holder will be the beneficiary of the profits, losses, bonus shares, dividends, and taxes that an account incurs. When you choose the best PMS in India, they will help you in every investment level right from constructing the portfolio to managing it periodically. Now, let us check the process of PMS in a step-by-step way. Security Analysis The first stage of a portfolio management process is security analysis that involves evaluating the risk factors, and returns of the individual securities and matchability with the risk appetite & financial goals of an investor. Portfolio Analysis Second stage is about identifying the stocks and any risk involved, many portfolios are created from them that are called as the feasible portfolios. Portfolio Revision When the portfolio gets selected, a portfolio manager and research analysts team, keep an eye on your portfolio, to ensure there is no opportunity missed out of earning good returns for an investor. Selection From all possible portfolios, an optimal portfolio that is well suited for an investor as per their goals and needs will be selected. Evaluation It is a final stage where performance of a portfolio will be periodically assessed to measure the quantitative result of the return against any risk involved in a portfolio, for the entire term of the portfolio investment. During this stage, if there's any changes in a portfolio to attain the return expectation then asset allocation will be drifted that helps in achieving the goal within the stipulated time frame. Types Of PMS In India, there are 2 types of portfolio management service and they are discretionary PMS and non-discretionary PMS: Discretionary service In Discretionary PMS type, the authority of buying or selling and strategizing is on a service provider. There's not any obligation on a provider to consult their investor when taking any decision on their behalf. Non-discretionary service In non-discretionary type, an investor has their say in all types of portfolio activities. They will give ideas and suggestions to the provider. Although this method offers more liberties to an investor, and defies the real purpose of the PMS as professional portfolio manager, in spite of the aptitude and knowledge, one needs to consult an investor before taking important calls. Why to Invest in Portfolio Management Services? An investor generally thinks to invest in the portfolio management service to get huge growth to their investments, revenues and earnings. Suppose you are looking ahead to an exponential growth then PMS investment will be a best idea. I hope this article helps you invest in the high performing PMS in India and help you take the most effective investment choice in the stock market. |
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January 2021
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