PMS
Portfolio Management Services
Portfolio Management Service (PMS) is a professional financial service where skilled portfolio managers and stock market professionals manage your equity portfolio with the assistance of a research team. Many investors have equity portfolios in their Demat Account but managing them can be a challenge. PMS is a systematic approach to maximize returns while minimizing the risk factor on your investments. It enables you to make sound decisions that are supported by extensive research and factual data without lifting a finger. Additionally, it better prepares you to deal with market adversity.
Types of PMS
​There are four popular types of PMS which are explained in this section.
Active Portfolio Management
The portfolio manager's primary goal is to maximize returns. In the Active Portfolio Management method, the portfolio manager attempts to reduce the risk of your investments by diversifying them across asset classes, industries, and businesses.
Discretionary Portfolio Management
The portfolio manager is entrusted with managing a specific portfolio in this method. Based on your objectives, risk tolerance, and investment duration, the manager selects an appropriate strategy that they believe is best suited to your portfolio.
Passive Portfolio Management
This method focuses on fixed profiles that are in line with the current market trend. In this case, portfolio managers prefer to invest in index funds which grow passively over time with minimal intervention. They have a low turnover.
​Non-Discretionary Portfolio Management
In this method, the portfolio managers advise you on investing, but the final decision is yours.
Once you give the go-ahead, the portfolio managers take the appropriate action on your behalf.
