Portfolio Management Service (PMS)

Portfolio Management Service (PMS) is a relatively more customised service offering to suit the requirements of Individuals and Institutions. PMS solutions predominately invest in focused investment equity strategies and have been restricted to high net-worth segment of clients. The Indian regulator has restricted minimum investment into a PMS strategy to INR 50 lakhs (five million).

PMS offer more transparency over one’s investments as the securities are held in direct ownership of the clients via a separate Demat account opened for the client. Unlike a mutual fund, a PMS fund manager has more flexibility and is not bound by the regulatory limits on sector, maximum allocations towards a single stock.

A PMS offers different fees structures which can be from a fixed fees to fully profit linked fees structure or a combination of both. This gives flexibility to a client to choose a fees structure which aligns with the investment objectives. We are authorised PMS distributors for multiple PMS investment strategies. Depending upon the requirements a client, we could assist them in identifying one or a combination of PMS strategies which could help them in furthering their investment goals. We assess not only previous track record of a fund manager, but other key metrics such as Portfolio strategy objective, methodology to select stocks, churn rate, fees structure and overall risk within a portfolio which is linked to the underlying stocks held by the PMS manager.