Following are some of the key benefits of portfolio management services:
Handled by Experts:
One of PMS's biggest benefits is that clients can leave the handling of their portfolio in the hands of experts. Moreover, they can get research-backed advice on managing market volatility.
Regular Portfolio Monitoring:
Portfolio managers regularly monitor the performance and returns generated by all the assets in their clients’ portfolios. Based on these observations, they alter their assets to adhere to the investors’ financial goals.
Efficient Portfolio Risk Management:
Portfolio managers actively manage portfolio risk by considering various micro and macroeconomic factors, regularly monitoring, and diversifying asset allocation.
Is Investing in PMS Risky?
The risk relating to an investment in PMS is the same as any investment in the stock market. The degree of risk depends on the investment strategy used. Being more actively managed would expose you to market fluctuations.
However, the passive approach may be less prone to risk, as a return might be low. PMS performance also depends on the manager's decisions and market conditions, so it becomes crucial to study your risk-taking ability before you invest.
Who is a Portfolio Manager?
A portfolio manager is a financial professional who makes investment decisions on behalf of his clients to achieve specific financial goals. Portfolio managers analyze market trends, economic conditions, and asset performance to formulate and manage investment portfolios.
Although portfolio managers can work in a wide variety of settings-from investment firms to banks and independent advisors-they might handle both discretionary and non-discretionary portfolios.
How is PMS Different from Mutual Funds?
The fundamental difference between PMS and mutual funds lies in the management style or investor control. PMS delivers customized investment plans based on individual clients, thus providing ownership of assets. In contrast, a mutual fund collects money from various investors to invest in a diversified portfolio managed by a fund manager.
Moreover, PMS normally has a high minimum investment amount and is more flexible than mutual funds with respect to the type of investment strategy adopted.
Can NRI Invest in PMS Services Offered by Anand Rathi?
Yes, the norm set by the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) will be complied with as Non-Resident Indians (NRIs) are allowed to invest in PMS services offered by Anand Rathi. PMS presents equities, debt, and alternative assets as other open avenues for NRIs. Accordingly, diversification can be achieved while availing of professional management suited to one's requirements.
Can PMS services invest in bonds?
Yes, portfolio management services can invest in a wide array of securities, such as bonds, stocks, mutual funds, ETFs, etc., based on the investor’s risk tolerance levels.
What is the investment limit for PMS in India?
As per SEBI guidelines, the minimum investment limit for PMS in India is ₹50 Lakh.
Who can make investments in PMS?
Individual investors, Hindu Undivided Families (HUF), Sole Proprietorships, Partnership Firms, Public and Private Limited Companies, Associations of Persons, and NRIs (except in certain geographies) can invest in PMS schemes.
What happens to the dividend I get from stocks in PMS?
The dividends from PMS stocks are reinvested into your portfolio, helping you buy more shares over time.
Can I invest in unlisted shares through PMS?
Investing in Unlisted shares is allowed only in non-discretionary PMS with a capping of 25%. Unlisted shares are not allowed in discretionary PMS.
Can we execute trades via PMS?
Portfolio managers can execute trades on their client's behalf via PMS. They try to gain maximum returns by trading with sound research.
Can I invest in PMS via SIPs?
Yes, you can invest in portfolio management schemes through SIPs once the minimum investment criteria of Rs. 50 lakhs are met which will help with disciplined and regular investing.
What are the different types of Portfolio Management Services?
Portfolio Management Services can be classified into four classes: Active Portfolio Management, Passive Portfolio Management, Discretionary Portfolio Management, and Non-Discretionary Portfolio Management.
Who can invest in PMS?
PMS is mainly tailored for high-net-worth individuals and institutional investors, which significantly requires a minimum investment amount based on the provider. Investors in quest of customized investment solutions with professional management of large capital can enjoy PMS.
How is PMS different from Mutual Funds?
PMS are highly customized investment strategies that directly hold assets, which means they are more individualized and flexible. This is in contrast to mutual funds, where the money of multiple investors forms one pool to create a diversified portfolio managed by an expert fund manager. Additionally, the minimum investment in PMS usually requires a much higher amount of money than in mutual funds.
Are PMS Risky?
Just like with equities or other financial markets, investing in PMS carries inherent risk. The degree of that risk depends on the investment strategy followed; active management may expose investors to higher volatility, while a passive strategy may provide stability but potentially poorer returns.
Who is a Portfolio Manager?
A portfolio manager is a money or finance professional who manages the investment decisions for his client with specific financial goals in mind. He conducts market research and analysis to devise and fine-tune investment strategies for the client's objectives and risk tolerance.
Can NRI invest in PMS services offered by Anand Rathi?
Yes, NRI can invest in Portfolio Management Services (PMS).
