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Learn About The Benefits Of Pms Portfolio Management Services.

Jul 11, 2022

PMS is a service provided by a portfolio manager to achieve the required return while maintaining the desired risk level. A portfolio of investments can include stocks, fixed income, commodities, property investment, other structured products, and money. A portfolio manager is a licenced investment expert who specialises in analysing the investor's investment goals and has detailed knowledge of the market's multiple instruments. Before executing the optimal portfolio, pms portfolio management services investigate various constraints like time frame, tax applicability, liquidity, and other client-specific considerations.

Portfolio of investments:

A portfolio of investments in stocks, fixed income, debt, cash, structured products, and other individual securities is called aportfolio management platform, and it is a service provided by the Portfolio Manager. The portfolio is managed by a professional money manager and may be specifically tailored to meet the investment goals of the investor. In contrast to a stock investor, who owns units of the fund, when you invest in PMS, you own individual securities. You can change/modify your portfolio according to your financial goals or your priorities. PMS can be invested in by both individuals and non-individuals, including HUFs, partnerships, sole proprietorships, and body corporate.

What features should a PMS have?

The portfolio's performance is reliant on the manager's ability to outperform the market. Conducting diligence on the portfolio manager is an essential part of choosing PMS. Another factor that could give PMS an advantage over other schemes on the market is the investment plan. Before committing funds, the investor should understand the theory. The PMS fee arrangement predicated on manager performance must serve as a win scenario. Returns are typically profit-shared at a rate of 20%. Investors value service to customers and clarity, especially in concessional portfolios. PMS portfolio performance appraisal frequently perks from customer satisfaction and establishes a long-term agreement.

Is PMS a worthwhile investment?

The benefits of investing in PMS include professional monitoring, risk profiling, efficient trade execution, and customised service. The disadvantages of investing in PMS are the higher risk assumption, the transition of asset control, and the portfolio manager's competence. For an investor with restricted time and expertise but a large capital base, PMS is a good option because the investment management firm is well-known and operates transparently. PMS also aids in the better realisation of portfolio diversification than randomly investing in a wide range of securities.


  • Highly Customizable: The portfolio manager could diversify investors rely on an investor's risk tolerance and expected returns.

  • Tracking Performance: Most services have sites and apps that allow investors to track their assets in real-time. 

  • Maintain Liquidity: Healthy liquidity ensures that you can sell one of your resources to meet your immediate needs.

  • Gain Knowledge: An investment management service not only helps the investor achieve their financial goals but also assists them to manage their economic understanding. They help investors make better decisions about future investments by constantly updating them on a variety of investment strategies and technicalities.


Portfolio management is vital because it mitigates risk by diversifying and rebalancing funds between many various assets based on the returns they generate. It also aids in the planning of tax obligations. 

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