Portfolio Management Service (PMS) is a professional financial service designed to alleviate the challenges of managing equity portfolios in your Demat Account. Led by skilled portfolio managers and stock market professionals supported by a research team, PMS follows a systematic approach to maximize returns and minimize investment risks.
Types of portfolio management services
- Active portfolio management: Focused on maximizing returns, this approach diversifies investments across asset classes, industries, and businesses to reduce risks. It involves higher turnover compared to passive management.
- Passive portfolio management: Aligned with current market trends, this method invests in index funds, allowing portfolios to grow passively over time with minimal intervention and low turnover for reasonably good long-term returns.
- Discretionary portfolio management: Entrusting the portfolio manager with managing a specific portfolio, this approach modifies strategies based on individual objectives, risk tolerance, and investment duration.
- Non-discretionary portfolio management: While portfolio managers provide investment advice, the final decision rests with the investor, allowing them to authorize actions based on the recommended strategies
