Investing in equities, fixed income, cash, debt structured products, and other individual assets can be done through a portfolio management service (PMS), which is handled by a professional money manager and can be tailored to meet specific investment goals. When you invest in PMS funds, you own individual securities as opposed to mutual funds, where investors own units of the fund. Your portfolio can be flexible enough to be tailored to your unique needs and goals. Even while portfolio managers could be in charge of hundreds of accounts, yours might be unique. Investors can use portfolio management services to gain qualified assistance with managing their money. Your investment goals and risk tolerance will be discussed with you by a portfolio manager, who will then choose and manage an investment portfolio that is tailored to your requirements. Investors who lack the time or expertise to manage their own portfolios may find this to be a beneficial choice.
Active Portfolio Management
Passive Portfolio Management
Discretionary Portfolio Management
Non-Discretionary Portfolio Management
PMS can be discretionary (where the fund manager makes choices on behalf of investors) or non-discretionary (where the fund manager must get an investor agreement for recommended investments). Mutual Funds are another option for professionally managed stocks investments, and they are also a popular choice. Take a look at some of the advantages of PMS:
People who manage their investments buy less quality and place a greater emphasis on price rather than value. Individual investors (Non-Promoter Non-Institutional [NPNI]) have a lesser proportion of holding in the major indexes like Nifty, BSE 200, or even Nifty 500, even though there are thousands of listed firms. Non-index smaller firms have higher retail or NPNI holding. In their portfolios, there is a lean toward lower-quality equities. Nifty accounts for about 60% of the market capitalization, BSE 200 accounts for nearly 85% of the market capitalization, and Nifty 500 accounts for nearly 94 percent of the market capitalization.
PMS is transparent; therefore, if we use cricket terminology, investors can obtain a ball-by-ball report on their portfolio in PMS. Every trade is communicated to the investor, and the managers’ website offers a real-time portfolio view. The customer may examine a targeted portfolio of chosen equities in his holdings for Motilal Oswal PMS portfolios. Mutual funds often have large scattered portfolios ranging from 25, 30 to even 100 stocks (which limits transparency) and only make their holdings known once a month or quarter. And investors with 5/6/7 different funds in their portfolios wind up with around 250-300 equities in their portfolios. Even if they de-duplicate the holdings through thorough research, they will discover that they own just about everything there is to own in the market, resulting in dilution of returns. If you purchase the market, you can’t beat it.
Because our portfolios have relatively low churn, registering for a SIP with Motilal Oswal PMS is an intriguing process. When an investor registers for a PMS-SIP, he or she is more than likely aware of the handpicked targeted list of high-quality equities that will be purchased month after month. A paperless and user-friendly PMS-SIP may also be registered online. Similarly, Motilal Oswal PMS allows investors to add to their PMS portfolio on a same-day basis by purchasing extra amounts online. Ideal for the day when a worldwide issue unrelated to local markets causes the Sensex to drop by 1000 points, only to recover in a few days!.
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