PMS Portfolio Management Services- A Better Way To Manage Your Equity Portfolio

 

Have you heard of portfolio management services? You might have; it is a deal that involves professionals. Yes, PMS(Portfolio Management Services), is a financial service for professionals where, with the help of an adept research team, stock market experts can easily manage their equity portfolios. While making a Demat  Account for the stocks is easy, managing it is tiresome and tough. It is not easy to manage investments and returns; therefore, PMS assists portfolio managers and stock market investors.

Types of portfolio management services

Since a portfolio management system is solely for assisting the experts in finance and stock markets, it needs to be tailor-made for various services included in the business of stock markets and investments. Four main types are:

• Active Portfolio Management: In any investment made, the manager intends to maximize the returns received. In this method, the manager tries to manage the risk reduction of the investments by dividing them among business classes and industries. One main advantage of this method is that the investor receives a higher turnover.
• Passive Portfolio Management: The trends in the market keep changing, and some fixed profiles are associated with these trends. Passive portfolio management works with these fixed profiles. In this method, investments are made only in the funds predicted to grow slowly and gradually over time and those that require as few interventions as possible. While they are beneficial in the case of long-term returns, they provide a low turnover compared to Active Portfolio Management.
• Discretionary Portfolio Management: This method is for the specifics. That is, it is versatile for handling a specific portfolio. It takes in some important prerequisites, like your objective, the duration of your investments, and the risks an investor is ready to take. Then a suitable strategy is formulated to accomplish the task.
• Non-discretionary Portfolio Management: This includes the last decision that the investor takes. The only task of the manager is to advise and guide the investor about investing. Once you have decided, let the manager know, and they will continue further solely according to your decisions. The manager does not have a say of his own in this method.

Advantages of opting for a PMS

• Handed by professionals: You get the opinions of an expert on your investments when you start using PMS. The managers who handle your portfolio are professionals and keep you updated about the rising and falling trends in the market. They are experts and help to increase your profits over the course of time.
• Tailor-made investment plans that are best suited for the investors
• Risk reduction and efficient investment plans that tend to return maximum profit margins

Portfolio Management Firms in India

More than 40 Portfolio Management Firms in India help manage the investors' assets in the country. The number of investors in the stock market is gradually increasing quickly, making PMS even more important. Some of the leading firms are:

●       SEBI

●       ICICI Direct

●       Groww

●       Alchemy Capital

And many more.