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Portfolio Management System
What is Portfolio Management Services (PMS)?
Portfolio Management Services (PMS) is a professional financial service that offers personalized investment solutions tailored to an investor's financial goals and risk appetite. PMS providers manage portfolios actively, aiming to generate superior returns while mitigating risks.
Types of Portfolio Management Services
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Discretionary PMS: The portfolio manager has full control over investment decisions.
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Non-Discretionary PMS: Investment decisions are made based on the investor's approval.
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Advisory PMS: The portfolio manager provides recommendations, but the investor executes the trades.
SEBI Regulations on PMS
Portfolio Management Services in India are regulated by the Securities and Exchange Board of India (SEBI). Key regulations include:
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Minimum Investment: ₹50 lakh as per SEBI guidelines.
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SEBI Registration: PMS providers must be registered with SEBI to ensure compliance and investor protection.
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Fee Structure: PMS providers charge fees based on fixed, variable, or profit-sharing models.
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Transparency & Reporting: Regular reports must be provided to investors on portfolio performance.
Benefits of investing in PMS
Personalized Investment Strategies
Tailored to the investor's financial goals and risk tolerance
Professional Fund Management
Managed by expert portfolio managers with in-depth market knowledge
Active Portfolio Monitoring
Regular adjustments are made based on market conditions
Potential for Higher Returns
Compared to traditional investment options
Diversification
Diversification
Investments spread across various asset classes to minimize risk
Who Should Opt for PMS?
PMS is ideal for high-net-worth individuals (HNIs) and institutional investors looking for:
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Customized investment management.
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Higher potential returns compared to mutual funds.
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Professional financial advisory services.
What is Portfolio Management Services (PMS)?
Portfolio Management Services (PMS) is a professional financial service that offers personalized investment solutions tailored to an investor's financial goals and risk appetite. PMS providers manage portfolios actively, aiming to generate superior returns while mitigating risks.
Types of Portfolio Management Services
-
Discretionary PMS: The portfolio manager has full control over investment decisions.
-
Non-Discretionary PMS: Investment decisions are made based on the investor's approval.
-
Advisory PMS: The portfolio manager provides recommendations, but the investor executes the trades.
SEBI Regulations on PMS
Portfolio Management Services in India are regulated by the Securities and Exchange Board of India (SEBI). Key regulations include:
-
Minimum Investment: ₹50 lakh as per SEBI guidelines.
-
SEBI Registration: PMS providers must be registered with SEBI to ensure compliance and investor protection.
-
Fee Structure: PMS providers charge fees based on fixed, variable, or profit-sharing models.
-
Transparency & Reporting: Regular reports must be provided to investors on portfolio performance.
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