What is Portfolio Management Services?
Portfolio Management Services are offered to high net worth Individuals who wish to opt for personalized management of their finances. The term portfolio means the basket of asset classes such as equity, debt, commodities, cash, etc. Portfolio management is managing appropriate combination of securities to generate optimum return and reducing risk through proper diversification. Unlike Mutual Funds, The ownership of securities lies with the investor and actively managed by professional manager. It is a customized investment product based on client needs and objectives.
Financial markets are complex to understand and investing in financial markets require market knowledge, proper research & analysis, experience, regular monitoring and it is a time consuming process for an individual Investor. In PMS, a group of experienced professionals do extensive research and analyze the securities for the client. Client just needs to give money to the portfolio manager and he will invest on behalf of client. Portfolio Manager understands client goals and risk appetite, based on client needs he optimizes the returns to achieve client goals by investing in securities like equity, fixed income securities and commodities etc.
Investing in direct equity requires market knowledge, proper research, experience, regular monitoring and it is a time consuming process for an individual Investor.
Portfolio Management Services (PMS) is a customized investment product and invest in securities like equity, fixed income securities etc. Generally, it is offered to High net worth individuals (HNIs). Unlike Mutual Funds, The ownership of securities lies with the investor. It is managed by professional manager. Investors who are looking for an alternative to direct equity can look to invest in PMS. PMS provide comfort to the investors and generate superior returns in the long run.
Investors who are looking for an alternative to direct equity can look to invest in PMS. PMS give comfort to the investor and generate superior returns in the long run.Track My Investments
Types of Portfolio Managements
Discretionary Portfolio management services
The investment in discretionary portfolio management is at discretion of the fund manager & client has no intervention in the investment process. Client gives the authority to portfolio manager to manage the securities in the portfolio.
Non-Discretionary Portfolio management services
In non discretionary portfolio management services, the portfolio manager can only suggest the investment ideas to client but the client has full right to take his own decisions.
Advantages of PMS
- Customized based on client requirement
- Superior returns
- Reducing risk through diversification
- Managed by experienced professional manager
- Tax efficient
- Regular portfolio monitoring
Why portfolio management
Portfolio Management Service is a tailor made professional service offered to cater the investments objective of different investor classes the clients can be Individuals or Institutions entities with high net worth. There are many benefits of investing in Best Portfolio Management Services in India.
The most important is PMS provides professional management of portfolios, the portfolio manager is expert in its area and has years of experience in the same field. The strategies designed by him will be as per the objective of the investor.
Continue review and rebalancing
performance and keeps it align as per objective of the investment. Changes in the portfolio are done as and when needed.
Ease of transactions
All the paper work and administrative actions are taken care by the portfolio manager. The investor doesn’t have to involve in all these paper work. Periodic performance reports are shared by the managers to the investors.
All the capital gain, performance and profit and loss statements are shared with investor on a regular basis. The investor is always aware about its holdings and market value of his investments.
Portfolio management services can be discretionary or non discretionary.
Portfolio Management Services are ideal for High Net worth Individuals or Institutions who wish to opt for personalized management of their finances. A team of expert professionals conduct extensive research on markets to provide a customized solution for achieving unique investment objectives. This ensures the optimal selection of investment opportunities within an asset class and active monitoring for optimized results. Investors have the access to track their portfolios at all times.
Multi Cap Advantage PMS - the right time to allocate
“The strategy of buying what's in favour is a fool's errand, ensuring long-term underperformance. Only by standing against the prevailing winds - selectively, but resolutely - can an investor prosper over time. But for a while, a value investor typically underperforms” – Seth Klarman
The current market conditions are a real litmus test for value investors as they never found it so difficult to out-perform the market as they have in the recent months.
We started 2018 on a tricky wicket:
- Volatility was the call of the day
- We saw sharp corrections in stocks across market capitalizations
- The worst hit were midcap and small cap stocks.
|Index||1 week||1 month||YTD||1 year|
|Nifty Midcap 100||-7.29%||-8.27%||-6.68%||22.99%|
|Nifty Smallcap 100||-8.41%||-11.54%||-8.57%||26.41%|
All data as on 5th Feb 2018
This type of volatility would continue over the next 12 to 18 months as India is faced with series of factors both local and global.
- Forthcoming 4 State elections
- General elections
- Crude oil Prices
- Interest rates locally and US interest rate
- Corporate earnings catch-up
Over longer term large cap stocks provide consistent / stable returns as compared to Mid / Small cap stocks.
In uncertain markets like what we are envisaging in the next 12-18 months one should be shift investment bias towards large cap stocks.
In uncertain markets it is also advisable to create a portfolio hedge.
Multicap Advantage PMS is the only PMS in the country offering:-
- Large cap biased portfolio of 20-25 selected stocks
- 100% hedge of the portfolio through index put option.
We continue to remain bullish on the long term potential of building substantial wealth through equity investments. Short to medium term volatilities provide us interesting opportunities to capture and add alpha to the portfolio returns.
While equity markets will still outperform other asset classes, given the events over the next 12-18 months on should shift allocations in favour of large cap stocks with hedge option.