PMS
PMS
What is PMS?
Portfolio management service (PMS) is an investment vehicle under which an investor’s portfolio is managed by a professional fund manager. The fund manager is usually a market expert or veteran in return for a fee. Portfolio management services define their investment universe and investment strategy in prior so investors can decide if the mandate suits their needs and accordingly invest.
A separate Demat account is created for investors opting for a PMS scheme. All investments are made in the investor’s name only. This attributes a high degree of ownership and transparency to the PMS model. Dividends or any other corporate actions are usually re-invested in the account and do not hit the client’s bank account.
What are the type of Portfolio Management Services ?
Discretionary Portfolio Management Services
In this PMS, the investor will only provide the capital and the professional fund manager will take care of all investment on his behulf
Non-Discretionary Portfolio Management Services
In this PMS, the investor will provide a capital and also the instruction in regards to investing funds. The manager will have to act according to the instruction received
Active Portfolio Management Services
This is when the investor needs portfolio managers anytime as and when required. This is a higher risk investment, where the funds have to be relocated by continuous tracking
Passive Portfolio Management Services
This is the complete opposite of Active PMS. Also Known as Index Management, here the objective is set for a long term and investments are done thinking long term returns