Portfolio Management Services
What is PMS?
Portfolio Management Service (PMS) is a skill delivered by a portfolio manager to attain the required return rate within the desired level of risk. A portfolio manager is an accredited investment professional who particularizes in assessing the investment purpose of the investor and has a comprehensive knowledge of the various instruments in the market. Unlike a layman, the portfolio manager is better arranged to make informed choices for investments in securities. An investment portfolio can be an admixture of stocks, fixed income, commodities, real estate, other structured products, and cash. PMS is a customized service delivered to High Net-worth Individuals (HNI) customers. A PMS drafts an Investment Policy Statement (IPS) to comprehend the financial position and conditions of the client. The service is made-to-order per the investor’s return needs and the aptitude and willingness to presume the risk.
Benefits of Portfolio Management Service (PMS)
Some of the advantages of opting for these services are explained below.
- Expert opinion on your investment
One of the primary benefits of employing a Portfolio Management Service is that your investment is in the hands of professionals. The portfolio managers you allocate are experts in their field and comprehend how to handle market instability. They will maintain your portfolio competently and aim to increase your profit margin over time.
- Customized investment plans
The portfolio managers customize investment ground plans based on your financial purposes. They then amend the strategy based on your income, budget, risk forbearance, and age.
- Efficient risk management:
A portfolio manager’s first goal is to limit the risk of your investment while enhancing the returns. They concentrate on diversifying the risk included so that you do not endure a loss when market trends change.