An Introduction to Portfolio Management Services
Portfolio Management Services, commonly referred to as PMS, serves to alleviate the challenges involved in managing your equity portfolios in a Demat Account. Led by stock market professionals and skilled portfolio managers backed by a research team, PMS adopts a systematic approach to minimizing investment risks and optimizing returns.
What are Different Types of Portfolio Management Services?
Active Portfolio Management: This type is focused on return maximization, diversifying investment across asset classes, businesses and industries to mitigate risks. Compared to passive portfolio management, the active type generates higher turnover.
Passive Portfolio Management: This method is aligned with current market trends and involves investment in the index funds, allowing passive growth for portfolios over time while ensuring low turnover and minimal intervention for reasonably lucrative long-term returns.
Discretionary Portfolio Management: Assigning specific portfolio management to a portfolio manager, this approach makes modifications of strategies, depending on individual goals, investment duration and risk appetite.
Non-Discretionary Portfolio Management: Portfolio managers give investment advice. However, it is up to an investor to finalize the decision. This way, investors enjoy authorized actions depending on the suggested strategies.
