Portfolio Management Services (PMS)

Your investment portfolio refers to the investments you make across securities such as bonds, stocks, fixed-income instruments, real estate, and gold. The percentage of investment you make across these securities depends on your risk tolerance, investment amount, and financial goals.

If you’re a novice investor just kickstarting your investment journey, understanding your risk profile, ideal investment avenues, and investment amount can be overwhelming and make you turn your back on investing before getting truly started.

Fortunately, you can engage Portfolio Management Services (PMS) that can help you on your financial journey. Here, we discuss what is PMS investment, and more.

What is Portfolio Management Services? 

Portfolio Management Service’s meaning is a specialised service which involves experienced financial managers managing your investments. PMS takes a structured approach towards investment with an aim to optimise returns.

Here’s a look at the types of portfolio management services:

1. Active Portfolio Management: The manager monitors market conditions actively and makes regular changes to the portfolio allocation and composition to earn returns higher than the benchmark index.

2. Passive Portfolio Management: The manager follows a defined strategy and doesn’t make frequent changes to your portfolio but aims to replicate the benchmark index’s performance.

3. Discretionary Portfolio Management: The manager has complete control over investment decisions and is responsible for the portfolio’s performance.

4. Non-Discretionary Portfolio Management: The manager offers recommendations to the investor, who has the final say and control over the portfolio.

How Portfolio Management Services Work?

Now that you know PMS services meaning, it's time to discuss how PMS works. In the case of PMS, an experienced portfolio manager or PMS house manages your investments. Based on your particular

 financial goals and risk appetite, they will create a personalised investment strategy across securities like equity, real estate and debt instruments. The portfolio manager will monitor your portfolio continuously to make adjustments that will yield the maximum returns. The minimum investment for PMS is Rs 50 Lakhs.

Benefits of PMS

After discussing what is PMS service and how it works, let’s explore its benefits:

1. Customised Investments: PMS offers you personalised investment strategies that align with your particular financial goals and risk tolerance.

2. Expert Management: An experienced portfolio manager manages your investments based on rigorous financial research, insight and analysis.

3. Regular Performance Tracking: The portfolio manager tracks your investments and makes adjustments to ensure high returns.

4. Effective Risk Management: The portfolio manager aims to minimise the risk of your investment while optimising returns through informed diversification and regular monitoring. 

Final Thoughts

Now that you know the portfolio management service’s meaning, how it works, and the benefits of PMS, all you have left to decide is whether this is the right decision for you. To ascertain this, compare PMS providers and discuss your financial goals with them to understand which one suits your needs best.

If you’re looking for a reliable financial platform to manage your investments, consider Tata Capital Moneyfy. A one-stop shop for all your financial and investment needs, Tata Capital Moneyfy, helps you invest in mutual funds, SIPs, and stocks while also enabling loan and credit card applications. To learn more, visit the Tata Capital Moneyfy website or download the App now.