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What is Portfolio Management Services (PMS)?

Portfolio Management Services (PMS) refers to an investment portfolio of equities, fixed income, cash, debt structured products and other individual assets managed by a professional money manager and can be tailored to specific investment objectives.

 

You have the suppleness to customize your portfolio to meet your specific requirements and objectives. Unlike in mutual funds where investor owns units of the fund, when you invest in PMS funds, you own individual securities.

Types of Portfolio Management Services (PMS)

Active Portfolio Management

Active Portfolio Management aims to generate higher returns than a benchmark index like Nifty 50 or BSE Sensex. The portfolio manager actively manages the investment portfolio.

Passive Portfolio Management

This is Quite the opposite of active portfolio management, the plan aims to get the same return as the index shows, also known as index management

Discretionary Portfolio Management

In this the portfolio manager has full control over the portfolio and can adopt any strategy to achieve investment goals.

Non-Discretionary Portfolio Management

In Non-Discretionary PMS, the portfolio manager gives investment ideas. However, clients decide whether to take up these investment ideas or not

frequently asked questions

Portfolio Management Services (PMS) refers to an investment portfolio of equities, fixed income, cash, debt structured products and other individual assets managed by a professional money manager and can be tailored to specific investment objectives.

Portfolio management services are often reserved for high net worth individuals, while mutual funds are available to a diverse group of investors. SEBI regulates mutual funds very strictly but Portfolio Management services are not as transparent as mutual funds.

Yes. All investments involve some risk, including the possibility of losing the amount originally invested, which varies depending on the asset chosen. Investing, for example, in small and medium-sized companies has a higher risk than investing in larger companies.

A PMS investor’s tax burden would be the same as if the investor were directly accessing the capital market. However, the investor should get advice from his tax expert in this regard. At the conclusion of the financial year, the Portfolio Manager should produce an audited statement of accounts to assist the investor in determining his or her tax responsibilities.

PMS and AIF have many differences between portfolio management services and alternative investment funds as AIF offers a wide range of investments while PMS on the other hand focuses mainly on listed securities.

Individual and non-individual like HUFs, Partnership Firms, Sole Proprietorship and Body Corporate

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