Portfolio management services (PMS) have evolved
to become one of the top investment vehicles in Indian capital markets today. Currently
there are more than Rs.40,000 crores invested through this route. The minimum
investment amount is Rs.25 lakh which can be paid in either cheque / bank
transfer or stocks worth this much.
Why is the product gaining popularity? The PMS Company provides
professional management of client's equity investments to create wealth. The
portfolio manager creates a portfolio of stocks for the investor. The portfolio
of stocks bought for the investor are then housed in a Demat account opened in
the investor's name only, and can be transferred back to him in case he decides
to close his PMS account. While there is a limit on exposure to individual
stocks in a mutual fund, a PMS portfolio can make a far more aggressive
allocation to any particular stock if he so decides. For example, it is
possible to construct a portfolio of 5-10 stocks on a PMS platform, but not
under Mutual Fund platform.
Equity enthusiasts appreciate the fact that they have access to
full portfolio at all times which is not possible in mutual fund. Thus PMS
provides a hassle-free, transparent and customized platform for investor
participation in equity markets which becomes far more superior to self-directed
investments. In case you find this interesting and want to know how PMS is different
from mutual funds and how you can create long term wealth with it connect with
us.
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