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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