PMS Invest in a powerful stocks portfolio
Portfolio Management Services (PMS), where your stock investments are strategically managed for optimal growth. Starts with Rs 50 lacs!
Know MoreWhat is PMS
Portfolio Management Service (PMS) is a specialized wealth management offering tailored for high-net-worth individuals (HNIs) who seek personalized management of their stock portfolio. PMS offers clients an opportunity to own a customized stock portfolio managed by professional portfolio managers.
Unlike mutual funds or other collective investment vehicles, PMS in India allows investors to directly own individual securities within their portfolios, providing greater transparency and control over investment decisions.
PMS is also a higher risk/higher return proposition which seeks to capitalize on specific market opportunities. PMS providers in India offer a range of investment strategies, including growth-oriented, value-focused, or income-generating approaches, allowing clients to align their portfolios with their investment objectives and risk preferences.
Many investors do stock investments on their own without understanding how complex it can get, and generate suboptimal returns in their portfolio. A good PMS can give them the right structure and better control over their stock portfolio.
Key Benefits of PMS
Customized Portfolio:
PMS providers tailor investment portfolios to individual financial goals, risk tolerance, and preferences.
Tax Efficiency:
PMS accounts may offer tax benefits, such as indexation benefits for long-term capital gains.
Professional Management:
Skilled portfolio managers actively manage investments, making tactical decisions to maximize returns.
Liquidity:
Unlike traditional investments like real estate, PMS investments are more liquid and can be sold relatively quickly.
Direct Ownership:
Investors have direct ownership of the underlying securities, enhancing transparency and control.
Regular Reporting:
Investors receive regular reports on portfolio performance, holdings, and strategy updates.
Diversification:
PMS portfolios can span various asset classes, sectors, and geographies, reducing risk through diversification.
Tailored Investment Strategies:
PMS can cater to specific investment strategies, including value, growth, income, or sector-focused approaches.
Access To Expertise:
Investors gain access to seasoned investment professionals and their research and analysis.
High Returns Potential:
Professional management and active strategies can potentially lead to higher returns compared to passive investments.
Who Shall Invest in PMS?
Someone who can invest a minimum of Rs. 50 Lacs (the minimum required by SEBI)
Someone who is ready to take very high risk in expectations of high returns
Someone who has a minimum networth of Rs. 1CRr
Someone who can invest for a minimum of 8-10 years time frame
Someone who can see high volatility in portfolio over years!
5 Things We Look Into PMS Before Selecting It For Our Clients
Total 400
PMS exists
Single Business - PMS
We prefer PMS's which do only one business, which is PMS.
Focused Style of Investing
We like those PMS, which believe in a concentrated portfolio and highly focused on few stocks
Periodic Reviews from the Fund Manager
We like those PMS where the fund manager likes to periodically communicate their view on the portfolio
In-House Research Team
We want to select those PMS who have a in house research team and don't depend outside for that
Proven Performance
We want to select only PMS which has been in business for years and have shown the performance in past
Out of 15-20 filtered PMS
Best of these (Jagoinvestor Research)
We choose only 3-4 PMS
PMS vs Mutual Fund
Particulars | Mutual Funds | PMS |
---|---|---|
Structure | Common Portfolio | Individually Managed |
Investment Objective | Good Return in 10+ yrs | High Returns in 7-8 yrs |
Minimum Investment | Rs. 5000 (Rs.500 In SIP Mode) | Rs. 50 Lacs |
Stocks owned by | Mutual Funds | You (in demat) |
Risk | High | Higher than MF |
Transparency | High | Moderate |
Liquidity | High | Low |
Suitable for | All Types Of Investors | HNIs And UHNIs Only |
Fees | Total Expense Ratio | Entry Load, Management Charges, Profit Sharing |
Invest in PMS through Jagoinvestor
FAQ's
What is minimum Investments required to invest in PMS?
As per SEBI regulations, its Rs 50 lacs
How transparent is the investment process in PMS products?
PMS providers are required to provide regular reporting and disclosures about the portfolio holdings, performance, and fees to investors, ensuring transparency in the investment process.
What level of control do investors have over their PMS portfolios?
Investors retain ultimate control over their PMS portfolios, with the ability to monitor performance, review holdings, and make investment decisions in consultation with their portfolio manager.
How does a PMS differ from mutual funds?
While both PMS and mutual funds pool investors' money to invest in various securities, PMS offers personalized portfolio management and greater flexibility in investment choices compared to mutual funds.