Portfolio Management Service is one of the most unique and tailored fund management services offered only to high net worth investors. Compared to mutual funds, costs in the PMS investments are higher but it is because there are more chances of customization than mutual funds. Let us know more about PMS and the importance of choosing the best PMS in India.
Create your portfolio with discretion
Every PMS investor has two choices. Either to go for the discretionary PMS where the fund manager will make all the decisions or, opt for the non-discretionary PMS option where transactions need to get approved by a client. The best part about choosing the best PMS company in India is it helps to create a unique and diversified portfolio as your risk appetite and needs are unique. This is the reason, PMS is suited to high net worth investors where the size of their portfolio will actually justify the level of modification.
Transparency in performance and reporting
Under the regulations of SEBI for PMS, funds need to make transparent disclosure for the costs and portfolio to their clients on a regular basis. Even portfolio value needs to be benchmarked over its market rates on a continuous basis and investors need to know the underperformance or the outperformance with time. The best PMS in India will report your portfolio performance against different benchmarks so investors will be able to make the right decision in such cases.
Portfolio can be customized as per your risk
Not to forget even mutual funds can be customized as per your risk appetite. Take an example where you can select equity diversified funds, balanced funds, and debt funds based on your needs. However, the mutual fund has certain limitations. On the other hand, PMS is different and unique in many ways. It creates a modified portfolio that is suited to your requirements. This portfolio mix can be customized as per your liquidity needs and investment over a time frame that makes it very unique.
Supported by advanced level of expertise and research
It is one best selling point for the PMS services. The best PMS companies in India are generally backed by complete fundamental research, which covers sectors, macros, and companies. There’re especially appointed specialists for debt, equities, macros, structured products and more. It is very important to choose the best PMS company like PMS AIF that helps their clients to diversify their investment portfolios efficiently and minimize their risk burden in this process.
Importance of technology for improving your performance
In the competitive market of PMS, many reputed and best PMS company in India use the latest technology for their clients. For instance, each investor customer has got the customer log in where they can check their portfolio & benchmark at any time. Besides, the secured section provides them explanatory notes and research about their investment portfolio, which helps the investors to take the right and informed decision.
As we can see, PMS offers several benefits compared to mutual funds and a wide area of diversification. Mutual funds have plenty of restrictions when it comes to asset classes. PMS is much more flexible. So, investors have a good range of products to choose like commodities, real estate trusts, structured products, gold ETFs, and more. These not just improve returns but decrease risk appetite as most of them have a low association with bonds and equities.