The Portfolio Manager provides portfolio management services (PMS), which are investment management services. Stocks, fixed income securities, and other structured products may all be included in the investment portfolio. Based on the risks, benefits, and goals of the client as represented in the Investment Policy Statement, these services may be constructed and customised to meet specific investment objectives (IPS).

One of the well-known investment services is the portfolio management service. The majority of stockbroking firms and financial consultancies provide PMS service with little modifications. The PMS service typically offers investors support at every stage of the investment process and guarantees strong returns.

A portfolio manager leverages their in-depth knowledge of the companies to increase investment returns. To utilise an acceptable and relevant approach and achieve the high potential returns, the manager must be clear about the investor’s risk and reward expectations.

Expert-led Personalized Investment

To meet the investing goals of various clients, PMS offers individualised investment solutions. Investors can choose from a variety of portfolios offered by service providers, including large-cap, mid-cap, multi-cap, and tiny stocks, among others, depending on their level of risk tolerance.

Unlike mutual funds, Investment portfolio management offer the chance to own a large portion of the firm. Based on the needs of a specific investor, a portfolio manager develops and implements investment strategies and trading timings.

The importance of PMS stems from two main goals: clients wanting for specialised thematic exposure that can be positioned as distinct strategies in their total equity portfolios, or investors who may wish to use the services of a portfolio manager to handle direct holdings of equities or fixed income.

Complete Transparency

Every investor in Portfolio Management Services is informed of every transaction. A clear fee structure is another element of the investment route. Due to the regulatory structure that governs PMS investments, portfolio managers are required to inform investors of every transaction and any associated fees. Additionally, investors receive a monthly statement with all the information, which makes it simpler for investors to watch their expenditures without difficulty.

Only direct plans are used by PMS to invest in mutual fund units, and the client is not subject to any distribution costs.

Rigorous Risk Management

More than just conducting market research and quickly providing recommendations are included in portfolio management services. It also calls for a robust risk management approach, in which portfolio managers closely monitor diversification and assess market, interest-rate, and inflation risks.

Because the investment market is known for its frequent swings, they can make the best investments throughout bullish and bearish periods by keeping track of or monitoring these elements. Portfolio managers can safeguard investor assets thanks to frequent market analysis. This enables PMS suppliers to minimise risk and maximise returns in a variety of market circumstances.

Regulated To The Core!

Although PMS is a flexible investment choice, investors are protected by the fact that the investor-fund management interaction is governed by the law.

There are several initiatives to standardise the services, increase investor friendliness, and increase transparency in PMS. Although the committee made several substantial improvements, it only touched briefly on the fee structure, which can be difficult for investors to understand.

Always Aiming for Alpha

Delivering strong alpha in comparison to benchmark indices is the goal of a PMS. It performs better than other investing options like mutual funds since it is connected to ongoing adjustments in response to shifting circumstances. Investment portfolio management is accompanied by ongoing customizations in response to changing circumstances.

As a result, it produces superior returns compared to alternative investing options like mutual funds. A portfolio manager and researchers collaborate to analyse the financial market and current developments. In order to make informed (entry/exit) decisions and ensure returns in unusual market conditions, they also keep track of an investor’s portfolio.

Researchers work with a portfolio manager to examine the financial market and recent events.To secure returns in unpredictable markets and make informed (entry/exit) decisions, they also keep track of an investor’s portfolio.

Reassuring Liquidity

A financial asset or security is said to have liquidity when it can be quickly and easily converted into cash without losing value. The asset that is most liquid on its own is cash.

In accordance with the provisions of the contract between the client and the portfolio manager, the Investor may remove portions of his portfolio. But the investment value in the portfolio following such a withdrawal must not be less than the necessary minimum investment amount. Portfolio managers are not permitted to enforce a lock-in on their clients’ investments.

Therefore, one of the best investing services is portfolio management, which enables customers to plan their investments so they can sell off a portion of their funds when they are needed. Investments in the securities market are subject to market risks; before making an investment, thoroughly read all relevant documentation.


The Portfolio Manager offers portfolio management services (PMS). These services can be created and tailored to fit particular investing goals. The portfolios that service providers offer to investors include large-cap, mid-cap, and multi-cap equities. The fact that the relationship between investors and fund managers is supervised by the law and that direct plans are utilised to invest in mutual fund units protects investors. The committee made a number of important adjustments, but it only briefly discussed the fee structure, which can be challenging for investors to comprehend.

PMS investments come with constant adaptations in response to shifting conditions. Consequently, compared to alternative investing choices like mutual funds, it generates greater returns. Researchers and a portfolio manager work together to analyse the financial market and recent events. Customers can organise their investments so they can sell some of their money when necessary.

CA Mukesh Gupta
CA Mukesh Gupta
Mukesh Gupta is the founder and director of Wealthcare. He is Fellow chartered accountant, Certified Financial Planner and Certified Public Financial advisor. He is in financial services industry since 1994. He conducts free money management sessions for corporates and associations on topics related to Personal finance. His previous engagement was with Birla Sunlife group. He regularly writes on topics related to Personal finance and occasionally appear on electronic media.

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