Portfolio Management Services (PMS) is a service offered by a Portfolio Manager or an asset management company. It involves managing an investment portfolio consisting of stocks, fixed income, debt, cash, and other securities, handled by a professional fund manager and potentially tailored to specific investment objectives. Unlike mutual funds, where investors own units of a scheme, PMS investors own individual securities. Even though portfolio managers oversee multiple portfolios, each account remains unique.

Types of PMS

• Discretionary PMS: The Portfolio Manager has complete discretion over investment decisions and timing.
• Non-Discretionary PMS: The Portfolio Manager provides investment suggestions, but the investor makes the final decision. The PMS manager executes the trades.
• Advisory PMS: The PMS manager offers investment ideas, but the investor is responsible for decisions and execution.

Benefits of PMS

• Professional Management: Expert handling of portfolios aims for long-term performance with minimal risk.
• Continuous Monitoring: Portfolio managers track and adjust holdings for optimal performance.
• Flexibility: Managers can hold cash as needed or concentrate investments based on market opportunities.
• Risk Control: Real-time research support helps mitigate risks.
• Ease of Operation: Administrative aspects are handled by PMS, with daily performance reporting available online.
• Custom Advice: Select clients receive personalized investment strategies for their financial goals.