Portfolio Management Services or PMS are customised investment solutions offered by AMCs and brokerage firms besides independent portfolio managers. This service is designed to achieve investors’ financial goals while considering their risk appetite. When individuals invest in PMS, they own all financial instruments in their name, contrary to mutual fund investments.
According to the rules of the Securities and Exchange Board of India (SEBI), individuals must invest at least Rs.50 lakh in PMS. Hence, these solutions are usually exclusive to high net-worth individuals.
Over the years, PMS has become a popular option for investors. That said, every investment avenue has its specific set of advantages and disadvantages. Hence, before opting for this investment avenue, individuals must analyse the pros and cons and decide whether it’s the right option for them. Thereafter, individuals can invest in PMS via KredX’s online platform, which ensures maximum convenience.
But foremost, it’s imperative to know the different kinds of PMS.
Broadly speaking, PMS are of two types. They’re discussed below:
The following are the limitations of Portfolio Management Services: