PMS or Portfolio Management Service is a professional service where qualified and experienced portfolio managers backed by a research team manage equity portfolios on behalf of clients instead of clients managing it themselves. PMS could either be Discretionary; i.e. where the fund manager takes decisions on investors' behalf or Non-Discretionary; i.e. where the fund manager needs to take approvals from the investors on suggested investments. For every PMS investor, the Portfolio Manager creates a segregated demat account where his portfolio is held on his behalf. The Portfolio Manager has to be provided with a power of attorney to transfer stocks in and out of the demat account.
A dedicated portfolio manager of PMS backed with the research framework personally looks towards your investments. The research team consists of the SEBI registered analysts. These analysts are constantly in tune with markets and are looking towards the ongoing trends. The team closely monitors your portfolio and keeps a thorough track of it. The key reason is the constant monitoring, which helps in taking the informed decisions at right time. And it's a known fact that entry and exit at right time earn even in the negative markets.
The role of portfolio management services in your investing life doesn't limit only to thorough research and recommendations. It also develops a financial risk management plan. The risk management plan consists of track over proper diversification. Moreover, the risk associated with the market and interest rates, inflation are also been considered here. A risk management plan is a 360-degree approach towards minimizing risk and optimizing the returns in the market odds.
One of the key benefits of having an investment with the portfolio management service is the customization offered. Being an investor you can also discuss and decide upon the asset classes or stocks which you want to refer specifically or avoid. With this, you can get a customized investment portfolio which is up to your expectation as well as capable of reaping returns.