Portfolio Management Service or PMS is one of the most advanced forms of Investments available for HNI or Ultra HNI investors. It involves a range of curated investment strategies to suit different types of investors. A professional PMS includes research, investment execution, operations, performance tracking. The decision of picking the equity shares for the portfolio is usually taken by the Fund Management team.
Two types of PMS –
1. Discretionary Portfolio Management – The decision of picking the securities for the portfolio is taken by the Fund Management team.
2. Non-Discretionary Portfolio Management – Fund Manager needs to seek approval of the investor on the recommended shares/investment avenues.
How? (People, Philosophy and Process)
At Wealth Managers India Well-qualified and experienced Portfolio Managers manage portfolios on behalf of the investors. The Fund Manager/s are backed by an able research team and are aided by the 100+ man years of experience between the partners of the firm.
However, we are not content on resting on past laurels. Our dedicated team works round the clock to enhance the portfolio performance under the different investment strategies.
For whom? (Eligibility)
High Networth Individuals, Ultra High Networth Individuals, NRIs and Corporates can take the advantage of a PMS. As per SEBI regulations the minimum ticket size is ₹ 50 Lakhs for each PMS.
Benefits and Differences between PMS and Mutual Funds
1. Customization – Since the PMS is a curated investment, it offers more flexibility regarding the underlying investments and
cash holdings as compared to mutual funds.
2. Taxation – Mutual funds are taxed on sell of units based on their type. PMS transactions, get taxed individually for each
security as if the client was directly investing in capital markets.
3. Higher concentration, expected return and risk – Since the PMS does not have regulations as strict as mutual funds, the
Manager can take more concentrated position in securities, thus increasing the risk and expected return.
4. Stock Holding – In case of a mutual fund the underlying securities are held by the AMC. In case of a PMS the transactions
are done through the client’s account only.
5. Close Monitoring – For a PMS, transactions are done on an individual basis, thus enabling regular monitoring and reporting
of individual accounts to suit the clients’ needs. In a mutual fund, all the tracking and reporting is done at a macro level
and is not individual specific.