5 things you must know about Portfolio Management Services
Posted by: Labdhi Mehta on Nov 20, 2017, 06.30 AM IST
1. Portfolio Management Services offer a customised investment portfolio managed by professional money managers to suit the investment objective of the investor.
2. Portfolio customisation can go the level of investing in a single stock or avoiding certain stocks/sectors where investors are not permitted or have a negative view of or are against their religious sentiments.
3. Investors have a demat account and a bank account in their name with the power of attorney in favour of the PMS to manage the funds.
4. In a discretionary portfolio, the manager independently manages the funds of each client in accordance with the needs of the client while a non-discretionary portfolio is managed as per client's directions.
5. A PMS charges fees as per the agreement with the client and may be a fixed amount or a return based fee or a combination of both.