Portfolio Management Service (PMS) is a professionally managed investment service wherein experienced portfolio managers create and manage your investment. There are several types of PMS investment strategies available today. You can choose to invest in a PMS that aligns with your financial needs and risk appetite.
But how are these PMS investment strategies built, what are the benefits of investing in PMS, and how do you identify the right PMS for your portfolio? There are many queries that you as an investor may have about PMS.
To begin with, in this article, we’ll address the key basics of Portfolio Management Service.
- What is a PMS
- Types of PMS
- Benefits of PMS Investment
If you are looking to invest in a PMS, then you can check out PL’s full range of PMS offerings here
What is a PMS
A Portfolio Management Service, as the name suggests, is a service wherein a highly qualified portfolio manager manages your investments. It is a tailor-made investment offering, and the investment portfolio can comprise different asset classes, such as equity, debt, commodities, real estate, and cash. The fund manager will invest your funds based on your risk appetite, returns expectations, and investment horizon.
Note that according to the guidelines issued by the Securities and Exchange Board of India (SEBI), the minimum investment amount in a Portfolio Management Service is Rs 50 lakh. So, this is a product that typically caters to High Networth Individuals(HNIs) and Ultra High Networth Individuals (UHNIs)
Over the past couple of years, PL’s in-house team of experts has developed first-of-its-kind PMS strategies that rely on Fundamental, Alternative, Technical, and Quantitative techniques and methodologies. Its PMS strategies have been rigorously tested to create a robust investment framework that offers capital appreciation and long-term portfolio stability. Click here to know more.
Types of PMS
Let us now understand the types of PMS. Broadly, there are 3 main types of PMS:
- Discretionary PMS: According to the SEBI, the discretionary portfolio manager individually and independently manages the funds of each client in accordance with the needs of the client. This means that the fund manager can make investment decisions on your behalf i.e. the client’s behalf.
- Non-Discretionary PMS: According to the SEBI, the non-discretionary portfolio manager manages the funds in accordance with the directions of the client. This means that the authority to make investment decisions lies with you, i.e. the client. The fund manager can only provide suggestions. The investment will be made after the client’s approval.
- Advisory PMS: In this type of PMS, the fund manager purely provides advice or suggestions. The investor handles the execution.
In addition to this, PMS investment strategies can also be classified into Active Management and Passive Management.
Typically, in an actively managed investment strategy, the aim of the fund manager is to outperform the benchmark. Active fund managers rely on research and personal judgement to take a call on what to buy, sell, or hold. Meanwhile, in a passively managed fund, the aim is to mimic the performance of the benchmark.
Over the past couple of years, Quant-based passive investment strategies are gaining huge popularity globally, as well as in India.
With PL, you can invest in both active and passively managed PMS’. One of PL’s flagship PMS is the Multi-Asset Dynamic Portfolio. It is India’s first 100% quant-based multi-asset investment strategy. MADP is a passively managed PMS that provides exposure to multiple asset classes. It has been designed in-house by PL’s team of experts and has zero human bias due to its use of quant technology.
Note that MADP has 10 proprietary meters that track over 250+ parameters, to dynamically arrive at the optimal asset allocation. The aim is to help investors ride the upside and protect capital in a down cycle. It is hence an all-season investment strategy. To know more about MADP, click here
For more on PL’s PMS offerings, click here
Benefits of PMS Investment
When learning about Portfolio Management Services, it is essential to understand the benefits of PMS investment. Some of the key benefits of PMS investment are:
- Professional Guidance
- Personalised Services
- Customised Strategies
- Experienced Team
- Hassle-Free Investing Experience
- Balance Between Diversification & Concentration
- Transparent Reporting of Portfolio Performance
If you are looking to start investing in Portfolio Management Services, then you can do so with the Prabhudas Lilladher Group. The PL Group has been in the financial services business for nearly 8 decades and offers deep expertise and experience in navigating the capital markets. It is one of India’s most reputed financial services organisations and is known for its client-first attitude.
Under its Portfolio Management Services division, PL offers well-tested and diverse PMS funds to suit different investment objectives and styles. PL has a mix of in-house as well as third-party portfolio management strategies to choose from, so that investors get exactly what they need.
PL believes that technology and data are now playing a major role in investment decisions. So, the investment approach should be guided by following a systematic approach for alpha generation, strong risk management, and elimination of human biases.
This prompted PL to launch a pure-play, Quantitative Research and Investment arm that comprises CAs, CFAs, economists, quantitative analysts, technical analysts, statisticians, and python programmers. This stellar team has conceptualised and developed Quant-based Multi-Asset and Equity Investment Strategies.
To know more about PL’s PMS offerings, click here
By investing in Portfolio Management Services with PL, you get access to PL’s well-tested and diverse PMS funds. You also benefit from PL’s industry-leading research DNA and robust investment framework. This disciplined approach to portfolio sizing and diversification leads to consistent performance and the potential to generate benchmark-beating returns.