Portfolio management services refer to the professional management of an individual's or an organization's investment portfolio by a dedicated team of financial experts or a financial institution. These services typically involve the creation of a customized investment strategy based on the investor's financial goals, risk tolerance, and investment horizon. The portfolio manager then uses a combination of investment products such as stocks, bonds, mutual funds, ETFs, and other securities to achieve the investor's financial objectives.

The primary objective of portfolio management services is to maximize returns while minimizing risk. Portfolio management services are suitable for individuals and organizations that have a significant amount of investable assets and require professional guidance and management to achieve their financial goals. The fees for these services vary depending on the size of the portfolio and the level of services required.

Advantages Of PMS

Expert opinion on your investment

One of the primary benefits of using a Portfolio Management Service is that your investment is in the hands of professionals. The portfolio managers assigned to you are experts in their field and understand how to deal with market volatility. They will manage your portfolio efficiently and aim to increase your profit margin over time.

Customized investment plans

The portfolio managers customize investment strategies based on your financial objectives. They then modify the strategy based on your income, budget, risk tolerance, and age.

Efficient risk management

A portfolio manager's primary goal is to reduce the risk of your investment while increasing the returns. They focus on diversifying the risk involved so that you do not suffer a loss when market trends change.

Regular monitoring

A portfolio manager will keep a close eye on the performance of each asset and the returns generated regularly. Based on this analysis, your investment is altered to meet your financial objectives.

Active Portfolio Management

The portfolio manager's primary goal is to maximise returns. In the Active Portfolio Management method, the portfolio manager attempts to reduce the risk of your investments by diversifying them across asset classes, industries, and businesses. When compared to the passive style, this results in a higher turnover.

Passive Portfolio Management

This method focuses on fixed profiles that are in line with the current market trend. In this case, portfolio managers prefer to invest in index funds which grow passively over time with minimal intervention. They have a low turnover but offer reasonably good long-term returns.

Discretionary Portfolio Management

The portfolio manager is entrusted with managing a specific portfolio in this method. Based on your objectives, risk tolerance, and investment duration, the manager selects an appropriate strategy that they believe is best suited to your portfolio. For example, portfolio managers may recommend equity-oriented funds to a risk-taking investor and debt-oriented funds to a risk-averse investor.

Non-Discretionary Portfolio Management

In this method, the portfolio managers advise you on investing, but the final decision is yours. Once you give the go-ahead, the portfolio managers take the appropriate action on your behalf.

Asset Allocation

This strategy involves investing in different types of assets based on the investor’s investment goals and risk tolerance. Eventually, it can result in significant returns with little risk.

Diversification

Investors or portfolio managers must diversify the investment portfolio to spread the risk and generate profits. Financial markets are volatile and subject to risks. Hence, having a diverse portfolio of assets with little or no correlation means profit made by one can easily offset the loss incurred by another.

Rebalancing

Market volatility may cause an investment plan to diverge from its target allocation. Therefore, rebalancing the portfolio based on market conditions might result in higher returns with little risk. The common ways to do this include buying and selling assets as required or increasing portfolio investment.

Portfolio Management Services