In the ever-evolving world of finance, individuals and institutions seek expert guidance to effectively manage their investments and achieve their financial goals. Portfolio Management Services (PMS) have emerged as a valuable avenue for investors to access professional management of their portfolios.
In this article, we delve into the various types of best Portfolio Management Services in India, shedding light on the options you have as an investor to optimize your investment strategies.
1. Discretionary PMS:
Discretionary Portfolio Management is a popular choice among investors who prefer a hands-off approach. In this type of PMS, investors delegate the authority of managing their investments to a professional portfolio manager. The manager has the flexibility to make investment decisions on behalf of the investor, based on the PMS strategy and objectives. This approach provides investors with the benefit of expert management while freeing them from day-to-day investment decisions.
2. Non-Discretionary PMS:
Non-Discretionary Portfolio Management, on the other hand, maintains investor involvement in the decision-making process. Here, the portfolio manager provides investment recommendations, but the final decision to execute trades rests with the investor. This type of PMS is suitable for those who want to stay actively engaged in the investment process while still leveraging the expertise of a professional.
3. Advisory PMS:
Advisory Portfolio Management services bridge the gap between full delegation and active participation. Investors receive personalised advice and recommendations from portfolio managers, who guide them on investment decisions. The final call, however, lies with the investor, allowing for a collaborative investment approach.
4. Value-based PMS:
Portfolio managers conduct in-depth research and analysis to uncover investment opportunities that align with the principles of value investing. This type of PMS is favoured by investors seeking long-term capital appreciation and more stability.
5. Theme-based PMS:
Theme-based Portfolio Management Services revolve around specific investment themes or sectors. Portfolio managers construct portfolios centred on emerging trends, such as technology, renewable energy, or healthcare. This approach allows investors to capitalize on potential sectoral growth and diversify their portfolios accordingly.
6. Smart Beta PMS:
Smart Beta PMS predominantly invests based on algorithms. These services cater to investors who want to invest in passive funds or index funds, this PMS will provide similar approach but a higher return.
Whether one seeks complete delegation, active participation, value-driven strategies, or sectoral themes, there is a PMS solution available to align with individual goal based financial planning. To navigate the complexities of the financial markets and work towards achieving your wealth creation goals, download the Tailwind app today!