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Portfolio Management Services Review, Types & How It Works


Portfolio Management Services

1. Introduction 

It is difficult for novice investors to choose the right investment. Due to not being able to assess the risks of the profile correctly, they lose their money. Many people don't have the knowledge and time to choose suitable investments to build their portfolio, so you can opt for Portfolio Management Services (PMS), which will help you to make an investment portfolio.

Investment is one thing we all want to do- whether we are starting our careers or nearing retirement age. Unfortunately, people from outside only see money in it. In contrast, it is not so at all. This world also has some limitations due to which people are afraid to invest. People want to invest their money in a place where they get decent returns, and their hard-earned money is also safe.

In today's time, you will find many avenues for investment in the market. You can earn good interest by investing in mutual funds and direct equities like fixed deposits and the stock market. But as an investor, you must choose the best and safest. However, what is important is how you choose the most suitable investment for you. In today's blog, we will talk about Portfolio Management Services (PMS) or Best PMS In India.

The portfolio includes stocks, commodities, fixed-income instruments, gold, and real estate. But all have their risks. It would be best if you chose the appropriate investment based on your risk tolerance and financial goals. If you are not an expert in investment and market strategies like many new-age investors, how do you create a holistic plan to accumulate and generate wealth for your future? If you need clarification, you can choose Best Portfolio Management Services (PMS) to guide you.

2. What Are Portfolio Management Services (PMS)?

  1. Portfolio Management Services or PMS is a facility that provides customized investment solutions to investors to achieve their financial goals and achieve decent returns keeping in mind the desired level of risk.

  2. Portfolio management services are primarily designed keeping investors in mind. Portfolio management services help investors maximize returns over time by taking into account risk profile, time frame, and investment objectives. In this, the investment portfolio is taken care of by professional portfolio managers, and through this, investments are made in various options.

  3. A portfolio manager thoroughly understands the market and businesses they use to maximize investor returns. You, too, can take advantage of their knowledge. 

  4. Best PMS In India provides you with time-to-time tailored experts who are well-versed with every single market happening, and their advice can better assist you in making important investment decisions. PMS tracks the market and invests your money in the right place, keeping in mind your needs at the right time. They tell and teach you the minimal things related to the stock market.

  5. Investment portfolios can be a mix of stocks, commodities, fixed income, other structured products, real estate, and cash. Keeping in mind the real-time market value and future aspects, portfolio managers invest their money in a safe place. Before executing the portfolio, PMS studies the market and the clients' various needs.

3. Types Of Portfolio Management Services

3.1 Active Portfolio Management

In this, the portfolio manager can mainly focus on how to beat the market index's performance like Nifty in the market, i.e., how to compete with the market giants. A proactive portfolio manager conducts in-depth research into the market and compares tracking indexes, and compiles a list of the best investment portfolios for maximum returns. Then actively buys and sells securities accordingly. However, taking care of your money sometimes also carries a high level of risk to generate high returns.

3.2 Passive Portfolio Management

The main objective of the portfolio manager through this portfolio is to get higher returns by investing in similar indices available in the market. The investment that takes place through this portfolio is indexing or index investing. Compared to active management, it has lower transaction costs arising from the business, as portfolio churn is minimal. It also has a low return tracking index due to low transaction costs. Returns can vary as the market fluctuates daily.

3.3 Discretionary Portfolio Management

The most striking feature of Discretionary Portfolio Management is that it gives the portfolio manager complete control of the investment portfolio. In this, he is free to make decisions. Also, he can adopt any strategy suitable for IPS, considering the investor's objective. Its fees are also higher than other portfolio management, as there is more manager involvement in decision-making. Therefore, it is the best option for people with little investment knowledge who need more market study time.

3.4 Non-Discretionary Portfolio Management

Through this PMS, the manager can only give suggestions to the investor, whereas the investor himself will be responsible for the decision. The manager can recommend to the investor when to invest in a better portfolio, but the final call rests with the investor rather than the portfolio manager. In this portfolio management, the manager plays more of an advisory role. 

4. Features of Portfolio Management Services (PMS)

  • Of course, there are some charges of PMS, but once you start using this service, the whole headache of monitoring your stocks and deciding on those stocks is transferred to you by the experts of PMS.

  • A portfolio manager has so much knowledge of the stock market that you can get outstanding returns even in a short time.

  • Under this, CAs must certify the minimum specified net worth of portfolio managers of Rs 5 crore.

  • In this case, the main job of the portfolio manager is to select the right stock by analyzing the market correctly. The manager selects only those stocks with low risk of investment and can give a good return or earnings on investment.


  • Another notable feature of PMS is that under this, a maximum exit load of 3 percent in the first year, 2 percent in the second year, and up to 1 percent in the third year can be taken. And after three years, there is no problem with the exit load.

  • The most important thing is that PMS investment is suitable only for those with a large amount of money, i.e., only a wealthy person can invest in PMS. For your information, the minimum investment amount in PMS, as per SEBI norms, is 50 lakhs. PMS charges a vast percentage of money for its excellent service, which is outside the capability of any ordinary or average-class investor. That's why common people avoid investing in it.

  • Portfolio management has so many customization options that it can be designed according to the needs of every investor. They have different model portfolios for investors, which they can choose and customize per their financial goals.

  • Here you don't just get advice on a particular stock but from experts on everything from debt to equity, from equity to gold, and from gold to all types of mutual funds.

  • A monthly report is mandatory with performance, and according to the new rules by the government of India, no upfront fee will be charged.

5. Which option is better for investing in Portfolio Management (PMS) or Mutual Funds (MFs)

PMS vs. MF 


Portfolio Management Services (PMS)

Mutual Funds (MF)


PMS works further specifically by keeping in mind an investor's goals. So they invest according to their needs in a place where they get high returns with low risk.

On the other hand, you get to see many variations in mutual funds. This way, you can invest in different equities according to your fund.


PMS serves to enhance the dialogue between the portfolio manager and the investor. Portfolio managers provide personalized advice to investors. For example, they understand the investors' problems and provide them with the right solutions. Also, the investor can modify the risk profile from time to time for maximum returns. 

Do you know that under PMS, the portfolio manager is directly accountable to the investors? Managers can also call investors themselves.

At the same time, mutual funds offer little engagement with their investors. 

Fee Structure 

Portfolio Management Services Fee Structure:-

PMS charges a yearly maintenance fee, the investor also has to pay some part of the profit share in the event of additional returns. Therefore, portfolio managers make responsible decisions to achieve supernormal returns, which also benefit them immensely.

Let us tell you there is a fee for entry and exit before investing in mutual funds. Also, mutual funds charge a fixed fee for maintenance and annual expenses.

Property Ownership 

The most significant difference between PMS and mutual funds is that the investors who invest in PMS directly own the company's shares. 

In comparison, mutual funds are slightly different from this, as mutual funds offer the amount invested in units.

Size Of Investment 

For investing in PMS, you need decent capital. Under this, the government increased the minimum investment amount to 50 lakhs in 2020.

The plus point of mutual funds is that ordinary people can invest in them. With a small amount of capital, they can start their investment journey.

6. Conclusion

Portfolio Management Services focuses more on developing investment strategies for investors. So that investors can evaluate the market properly even if they have yet to learn much about the market and can achieve their required financial goals with less risk.

The main goal of Best Portfolio Management Services is to increase its clients' capital, i.e., to increase their income regularly. In this, customized portfolios are created, keeping liquidity requirements in mind.

Frequently Asked Questions


Portfolio Management Services or PMS is a facility that provides customized investment solutions to investors to achieve their financial goals and achieve decent returns keeping in mind the desired level of risk.



As an investor, you have many investment options available in the PMS plan. You can invest in the best PMS scheme in India through a bank transfer or cheque. Some fund houses also accept investments through stock transfers.



Per the current regulations of the Securities and Exchange Board of India (SEBI), the minimum investment limit in the PMS scheme in India is Rs 50,00,000. But it is possible to change according to the plan.


Portfolio management services charge fees in two ways. They either have a fixed management fee or a performance fee based on the returns the investors generate.


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