Portfolio Management Services [PMS] is a more specialized way of managing your portfolio. Unlike a Mutual fund – A PMS typically has 20-25 stocks which are managed more dynamically. The objective of having a PMS is to generate returns higher than Equity Mutual funds. PMS products involve a bigger ticket size (minimum being 25 Lakhs), higher volatility, longer time horizon (at least 3 years), and more risk - taking capacity from investors.
With a minimum investment of Rs 25,00,000 and a trading & demat account one can get started with PMS immediately.
In a PMS, your portfolio is managed individually. Your returns are not impacted by cash flows from other investors. Your portfolio will be a mix of either equity, debt, or fixed income products based on your risk tolerance, age, preferences, and goals.
Also, for a PMS, all you need is a minimum investment of 25 Lakhs i.e. an investment lower than AIFs. Both residents and NRIs are eligible to invest.
PMS allows direct ownership of stocks and access to equity markets.
PMS typically are more risky and, hence, the return expectation from a PMS is higher than from Equity Mutual Funds.
The investment analysis and portfolio management team at Moneyfront will bring to the investor an array of PMS products from the best minds in the country. The following PMS products are available for investment via Moneyfront.