INTRODUCTION TO PORTFOLIO MANAGEMENT SERVICES [PMS]
You can invest in stock markets primarily in two manners.
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The self-approach wherein you call the shots
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The professional approach where you invest thru mutual fund or a PMS account
Mutual Fund: Mutual Fund will be ideal for you if you are a small investor. There are many mutual funds catering specifically to various asset classes or industries. There are also some balanced schemes which invest both in equity or debt.
Portfolio Management Services: If your investments are beyond INR 25 lakhs, investing thru a PMS account will be a better option for you. A customized management of your funds will give you the advantage to investing in sync with what suits your expectations. Your systematic risks in PMS account is to a large extent reduced because of careful selection of stocks, better timings, active management, balanced investing approach and so forth.
Direct Investments: If you are a small investor and aiming at very long-term investments. You should only consider direct investments provided you have knowledge, passion, time and wherewithal to identify dark horses.
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PMS involves experts in investment decision making which improves return potential and restricts flip side risks significantly. Additional benefits also include handling day to day affairs and book keeping on your behalf.
Contrary to popular notion, PMS isn’t expensive. Costs of maintaining PMS and mutual funds are almost the same.
ADVANTAGES OF PMS
PMS is tailor-made unlike Mutual Fund. The investment framework for your PMS account will be custom designed after detailed understanding of your demography, current businesses, family commitments, etc. Aspects like 'What wealth means to you & your family, 'Your definitions of out-performing & under-performing, 'Your aversion to loss' are taken into consideration for defining your investment philosophy.
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We dwell on many aspects for deeper understanding of your risk, return and liquidity requirements:
Situation
Individual & family situation
Anticipated changes in lifestyle in the future
Potential factors that could impact financial position – positive or negative
Legal & tax considerations
Concerns
Key concerns regarding wealth
Past investment experience
Philanthropic and/or legacy considerations
Anticipated major outflows
Priorities
Client expectations
Lifestyle expectations
Prioritization of long-term goals
Primary goal(s) for wealth
Preferences
Risk profile
Liquidity preferences
Investment preferences and constraints
Willingness to relinquish control or desire to be involved
Step by step approach prior to making investments makes PMS safer than direct calls usually made on gut feelings and sentiments.
After assessing your present financial situation, goals and risk tolerance, we present an investment plan with required rate of return and asset allocation.
Interested in opening your PMS account with us?
Drop in an email. We usually revert within 3 working days. The following table depicts our account opening and feedback process:
