Portfolio Management Service
What are Portfolio Management Services in India?
PMS or Portfolio Management Service is a professional service where qualified and experienced portfolio managers backed by a research team manage equity portfolios on behalf of clients instead of clients managing themselves.
Portfolio Management Services account is an investment portfolio in Stocks, Debt, and fixed income products managed by a professional money manager, that can potentially be tailored to meet specific investment objectives.
When you invest in PMS, you own individual securities unlike a mutual fund investor, who owns units of the entire fund. You have the freedom and flexibility to tailor your portfolio to address personal preferences and financial goals. Although portfolio managers may oversee hundreds of portfolios, your account may be unique.
As per SEBI guidelines, only those entities who are registered with SEBI for providing PMS services can offer PMS to clients. As per the SEBI guidelines, the minimum investment required to open a PMS account is Rs. 50 Lakhs. However, different providers have different minimum balance requirements for different products. In India, Portfolio Management Services are also provided by equity broking firms & Asset management Companies.
