Portfolio management companies: What do you need to understand?

Portfolio Management Service (PMS) is a professional financial service where skilled portfolio managers and stock market experts manage your stock portfolio with the help of a research team. Many investors have equity portfolios in Demat accounts, but managing them can be challenging. The portfolio management companies in india approach maximizing your returns while minimizing the risk factor of your investment. It empowers you to make the right decisions backed by a wealth of research and factual information without lifting a finger. It also prepares you better for the hardships in the market.

What types of portfolio management services are there?

Active Portfolio Management: The primary goal of a portfolio manager is to maximize returns. In the Active Portfolio Management method, portfolio managers attempt to reduce the risk of your investments by diversifying them across asset classes, industries and businesses.

Passive portfolio management: This method focuses on a fixed profile that is in line with current market trends. In this case, portfolio managers prefer to invest in index funds which grow gradually over time. With minimal intervention, low turnover but good long-term returns.

Discretionary portfolio management: A portfolio manager is entrusted with managing a specific portfolio in this way. It depends on your purpose, acceptable risk and investment period. Managers will select appropriate strategies that they believe are best suited for their portfolio.

Non-Discretionary portfolio management: In this method, the portfolio manager guides you through investments. But the final decision will be yours. Once you have proceeded, Portfolio managers will take appropriate actions on your behalf.

Why should you choose a portfolio management company?

You should consider PMS if:

  • You have a high net worth.
  • You have limited knowledge of investing and the procedures involved.
  • You don’t have time to check and balance your investments.
  • You do not know the volatility of the market and how to protect your investment during uncertain market times.
  • You are looking to diversify your investments to reap benefits across multiple asset classes such as stocks, bonds, equities, etc.

What are the benefits of portfolio management services?

Some of the benefits of choosing portfolio management companies in india are described below.

Expert opinion on your investments: One of the advantages of using portfolio management services is that your investments are in the hands of professionals. Portfolio managers assigned to you are experts in their field and understand how to deal with market volatility. They will effectively manage your portfolio and aim to increase your profit margin over time.

Customized investment plans: Portfolio managers will tailor investment strategies based on your financial objectives. They will then adjust their strategies based on their income, budget, risk tolerance and age.

Effective risk management: A portfolio manager’s primary goal is to minimize the risks of your investments while maximizing returns. They focus on the diversification involved so that you don’t lose when market trends change.

Regular checks: Portfolio managers closely monitor the performance of each asset and the returns it generates consistently. From this analysis, your investments are changed to meet your financial objectives. Portfolio management services allow you to sit back, relax and reap the benefits of your investments.

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