Is a PMS Investment the Best Option for You | Motilal Oswal
Is a PMS Investment the Best Option for You | Motilal Oswal

Is a PMS Investment the Best Option for You

When you start making an income that allows you to meet your needs but lets a significant portion be leftover as saving, you begin your research into the process and concept of wealth management. Wealth management helps you make your expenditures efficient, allocating your savings and disposable income to investments and savings schemes that will provide you with the best returns, while still ensuring that you have money saved for any unforeseen events. In this article, let’s take a look at what a PMS investing scheme is, which are the best portfolio management services in India, some of the best portfolio managers, and understand what exactly a PMS scheme is. 

  • PMS investing

Each of us has a different level of investing capacity and willingness to take risks. Similarly, we all have a limited, yet varying amount of time we can allocate towards investing and learning the ropes of investing and trading. While some might dedicate a larger chunk of their day to studying markets and making most of their investments themselves, the busy lifestyle, job schedule and work hours of some individuals might not permit them to be able to be completely in charge of their own wealth management. As a result, they might look into the meaning of portfolio management, and how they can avail of it for themselves. 

A Portfolio Management Service (PMS) scheme is offered by the best portfolio management services in India, and is suited for those who do not have too much time to spend on their own investing. They are thus willing to spend a little extra for the best portfolio manager and allocate them the task of managing their portfolio. This is essentially what a portfolio managing service does. As a customer of the service, you are appointed the best portfolio manager for your needs. This individual will take the lumpsum funds you provide and invest them into various instruments, creating a full-fledged investment portfolio in your name, meaning you own all the investments. This highlights a difference between a PMS scheme and a mutual fund. Both have a manager in charge of investing, but in a mutual fund you do not own the individual assets in the mutual fund investment, you simply own a share of the entire investment. Contrary to this, the meaning of portfolio management is that you own all the investments, but hire someone to stand in for you and do the investing on your behalf, in exchange for a fee. 

  • Which is the best PMS investment option for you? 

While the various best portfolio management services in India all have a different understanding and meaning of portfolio management that is represented by their offerings, the underlying concept is the same; you hire the best portfolio manager who is a professional to do your investing for you. The best PMS investment option for you, therefore, is dependant on which companies you trust, the various fee structures, and the list of services. 

Conclusion

There are a plethora of PMS schemes available in the market, each with its own unique offerings and benefits of portfolio management. The best PMS scheme for your wealth management goals depends on which company you are most comfortable with and the ‘price to performance’ ratio of a certain PMS offered by a given firm. Do your research well in order to pick a PMS scheme for times you cannot do the online trading yourself.

Related Articles: Portfolio Management Services Vs Mutual Funds | Types of risk in Portfolio Management | What is the Right Time to Re-Allocate your Portfolio Holdings? | How and Why to Re-Balance your Portfolio? | 7 Common Mistakes we Commit in Portfolio Reallocation

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