Understanding PMS:A Comprehensive Guide
Portfolio Management Services(PMS) is the the ideal service for people who “cant trade or invest on their own” & they take a professionals help, who does it for them. Going further, when you want to be just park your money in the share market and when you want a professional to completely handle it, then you are availing your “Portfolio Management Services”(PMS) from a professional
Benefits of Portfolio Management Services
PMS returns are good and these are generally looked at from the long term horizon.Generally, PMS services come to you with a track record of past performance, which may work as a indicator of the efficiency of the Fund Managers.Portfolio Management Services are offered by Banks & independent qualified professionals who are experts in managing other money. The general pattern is PMS returns are higher than the regular returns from the market as the extra effort is taken by the PMS professional in handling the money of the investor with extra care & personal touch. Moreover, as the PMS managers are professionals in the market and they do a better job in trading & investing as well than any other normal market participant. Usually, there will be a predefined time frame for any PMS service offered by an institution or bank as it works for a specific period like 5 years or 8 years or 10 years or any agreed period between the PMS service provider & the client.
Themed Stock Portfolios : Focus on Specific Sectors
Specific stock portfolios can be managed with focus on the given stocks. Every stock portfolio will have an objective or a theme. For example in “Manufacturing as a theme”, you may find only manufacturing based company stocks. Another example could be, in a “Theme as exports” you may find only export orinted company stocks in the portfolio.We teach you how to manage it or else, you can go for our “Automated Stock Investment Solutions”. Ideally, your stock portfolio can start with Rs,50,000 & go upto Rs.100,000. If you are interested to know more about these stocks, we can teach you stock investment as well. We can give you a detailed presentation on this, if you want to know more about this service.
The Importance of Periodic Portfolio Review
A portfolio review is done periodically to check if the portfolio is growing as expected or is it having sufficient growth as per market growth. Portfolio review is mandatory if you are looking forward to achieve your financial targets. Portfolio review is applicable for Mutual Fund Investments and stock investments as well. Market conditions are very dynamic and hence it keeps changing based on market conditions. We should always check if the market conditions are favourable to our Mutual Fund or Stock Portfolios, else we have to do our course correction immediately.
Portfolio Management Services & (HNIs)
Currently, PMS services are used predominantly by High Net-worth Individuals as the service involves PMS charges / Profit Share in PMS, wherein the PMS manager gets a profit share from the returns of his clients PMS account. This profit share is given only when the PMS manager is able to show better returns than the general market returns for his PMS portfolio.
Free Portfolio Review
Regular portfolio reviews are essential to ensure that your investment strategy aligns with your financial goals and market conditions. During a portfolio review, we assess the performance of your current stock holdings, evaluate the alignment with your portfolio’s objective or theme, and make necessary adjustments.
