Portfolio Management Service (PMS) is a paid for financial service that seeks to ease the burden of managing equity portfolios in your Demat Account. Managed by professional portfolio managers and stock market experts who are accompanied by a competent research team, PMS operates on a well-defined process to achieve high returns on investments and low risks.
Different classes of portfolio management services
Active portfolio management: Employed with the aim of achieving higher returns on the invested capital, this strategy spreads out its investments through asset classes industries and businesses, thus controlling risks. It occurs at a higher turnover than passive management.
Passive portfolio management: In a way synch with the prevailing climate of the market, this approach involves buying index funds for portfolios that grow slowly over several years with only moderate trading activity for decent long-run returns.
Discretionary portfolio management: Systematically changing strategies according to the goals, the ability to take risks, and the time horizon delegated to the portfolio manager and assigning him the management of a certain portfolio, it is different from others.
Non-discretionary portfolio management: While portfolio managers provide investment advice, the final decision rests with the investor, allowing them to authorize actions based on the recommended strategies.
