It is a well-known saying that the higher the risk, the higher the returns. If you have a high net worth (HNI), a portfolio management service can help you get captivating returns. PMS (Portfolio management services) is an investment portfolio dealing in equity, stocks, debt, cash, fixed incomes, structured products, and other securities. It is a professional service handled by highly experienced and well-qualified portfolio managers. The managers handle the above-quoted services for their clients. A research team also backs the managers in providing necessary and useful insights.
Equity portfolio management services help in the planning and implementation of different philosophies, strategies, and methodologies to beat the equity market. The primary objective of the investment analysis is to make investment decisions or advise others to do so. Hence, there is a strong relation between equity analysis and equity portfolio management.
Types of portfolio management services
There are numerous types of investment and portfolio management services provided by PMS Service providers– the best ones being well-synchronized and well-calculative keeping the objectives of the client in mind. Some kinds are mentioned below:
- Active portfolio management
It keeps track of the market index and performance such as the Nifty. The portfolio manager keeps an eye on different positions in the market and plansto buy or sell accordingly. The aim of this is to get the return on investment as high as possible. It has a high level of risk associated.
- Passive portfolio management
It is also called index investing. The transaction cost is also lower than active portfolio management. The returns are decided by the market returns.
- Discretionary portfolio management
The portfolio manager gets complete control of it. He researches and decides the prospects of investments. As the portfolio management company is more involved, the fee for this service is a little higher.
- Non-discretionary portfolio management
The portfolio manager advises you to invest in the best investment opportunities under this. The final authority to make the investment, however, lies with the investor only.
Why should you take the help of portfolio management services?
There are many reasons why you should invest in equity portfolio management services, including:
- PMS is managed by experienced managers with decision-making abilities after a fundamental analysis of the market. It diversifies your assets.
- Investing in PMS helps you get a customized portfolio according to your financial plans. You can discuss your short-term or long-term investment goals with the fund manager.
- There are multiple PMS Service providers in the market, giving you the freedom to pick one with a transparent fee structure.
- Your interests are protected with a PMS provider as the fund managers are tightly monitored. They are needed to submit holdings, assets, transaction statements, and costs periodically.
- It can help you to get superior returns.
Choosing a PMS Service provider?
Today you have many options for the same thing, and PMS is no different. It might be overwhelming for you to pick one out of them. You don’t have to worry about that now as you are about to know what factors should be considered while making a decision.
If a service provider has the above factors according to your expected or set standards, you can go ahead to avail of their services.