A Portfolio Management Scheme is a professional investment service where your funds are handled in a segregated account in a bespoke portfolio. Under PMS, investments are kept distinct with other investors; instead, your portfolio is independently built based on your investment objectives, risk profile, and investment horizon.
PMS can include a range of assets such as equities, debt securities, and structured products. The key is that the portfolio is continuously adjusted and kept updated to align with your changing needs.
Main Features of PMS
Customized Portfolio Construction
Every PMS account is custom-built to suit an investor’s personal preferences and risk appetite. From asset allocation to sector selection, strategies are made to suit your individual needs.
Active Management
Dedicated portfolio managers regularly review markets, adjust allocations, and make timely adjustments to enhance returns while managing risks.
Transparency and Reporting
PMS offers regular statements, detailed reports, and activity logs so you remain updated about your investments.
Flexibility
AIF Fund provides greater flexibility in strategy, asset selection, and timing compared to standard investment products.
Types of PMS Funds
PMS can be broadly categorized into two styles:
Discretionary PMS
In this model, the portfolio manager has full authority to make investment decisions in line with the predefined strategy.
Non-Discretionary PMS
Here, the portfolio manager recommends strategies, but trades are placed with your consent.
These structures help investors to choose the level of control they wish to maintain over their investments.
Benefits of PMS Services
Personalized Strategies
Portfolios are designed to match your comfort level, objectives, and liquidity needs.
Professional Expertise
PMS managers leverage research, in-depth analysis, and insights to build strong investment strategies.
Potential for Superior Returns
With active management and focused portfolios, PMS strives to outperform traditional investment avenues.
Transparency and Accountability
Regular updates and personal client service provide peace of mind.
Ideal Investors for PMS
PMS is best suited for investors who:
Maintain a substantial portfolio (usually starting at INR 50 lakhs or more)
Seek customized investment strategies
Expect dedicated professional management
Understand and accept higher market-linked risk for the opportunity of better returns
How to Start with PMS
Define Your Objectives
Identify your financial goals, risk profile, and investment timeline.
Select a PMS Provider
Research reputable PMS providers with proven performance.
Sign the Agreement
Complete necessary documentation, including the client agreement and KYC.
Fund Your Portfolio
Invest the agreed investment amount.
Track and Review
Regularly review performance reports and consult your portfolio manager.
Conclusion
Professional PMS offer sophisticated and tailored solutions for investors who seek more than standard investments. With a combination of dedicated support, professional oversight, and structured approach, PMS can be an effective tool for growing your portfolio.
If you are ready to explore how PMS can advance your financial goals, consider speaking with a qualified investment manager to start your tailored investment path.