Portfolio Management Service

Portfolio Management Service (PMS): An Overview

Portfolio Management Services (PMS) is a specialized service which offers a range of specialized investment strategies so as to capitalize on the opportunities present in the market.

Any form of investing requires time, knowledge, and the right mind-set. It also requires constant monitoring. Under PMS, professional managers strategize to deliver consistent returns while keeping in mind your risk appetite. Every portfolio manager is skilled and has a well-defined investment philosophy and a strategy which acts as a guiding principle.

PMS relieves an investor from all the administrative hassles that occur while investing. One receives periodic reports on his/her portfolio performance as well as on other aspects of investments. Investments are tracked on a continuous basis to maximize returns.

Incase of a PMS setup, the relationship manager defines the financial goals and advises the right product mix. Personalized service is given that ensures that you receive periodic updates and also the account performance reports Portfolio managers manage stocks, bonds, and mutual funds of their clients considering their personal investment goals as well as their risk preferences. 

Advantages of choosing PMS instead of Mutual Funds:

While comparing Portfolio management service (PMS) over mutual funds services it is found that portfolio managers offer certain services which are better than the standardized services offered by mutual funds managers. These services are as follows:

• Asset Allocation: PMS helps in allocation of savings of a client in stocks, bonds or equity funds. The plan is tailor made and is designed after detailed analysis of the client's saving pattern, investment goals, and his/her risk taking capacity.

   

   

• Timing: Portfolio management service helps in allocating the right amount of money in right type of savings plan at the right time. Portfolio managers provide their expert advice to their client as to when to invest in equities or bonds and when to take money out of a particular savings plan. They analyze the market trends and advice their clients regarding the amount of cash to be taken out during big risks in stock market.

   

   

• Flexibility: Portfolio managers plan investments of clients according to their needs and preferences. At times, portfolio managers can invest client's money according to their own preferences since they know the market better than client. It is the client's duty to provide his portfolio manager a level of flexibility so that he is able to manage the investments with full efficiency and effectiveness

Unlike mutual funds, portfolio managers do not need to follow any rigid rules of investing a particular sum of money in a particular investment mode. Mutual fund managers require to work according to regulations set up by financial authorities of their country. For example in India, they need to follow rules set up by SEBI.