What Are Portfolio Management Services and What Are Its Benefits?

What Are Portfolio Management Services and What Are Its Benefits?

Portfolio Management Service

Most people seem to have no knowledge or under-knowledge of maintaining a profitable account portfolio for their investment account. The reasons can be anything from formal studies to harsh time management skills. Whatever the reasons, a portfolio management system helps people to go with the assurance of being on the right side of investment records.

But how? What exactly is a ‘Portfolio Management System’?

All people want good financial health. And investment is an ‘old wine’ way of achieving so. But it’s risky and quite complicated for most people. As a result, most people fail to maintain a good profitable portfolio. Portfolio Management Services helps you with the right investments that return profits to you.

What Do Portfolio Management Services Do?

Professional portfolio management services work on behalf of clients. They are the accountable people handling your investment portfolio and keeping it profitable.

You, on the other hand, may choose to keep things stuck to your plan and choose to build and manage your portfolio individually. In both cases, a licensed Portfolio Manager’s goal is to maximise the ROI with a minimum of loss exposure.

Best Portfolio Management services in India analyse the strengths, weaknesses, opportunities and threats for a spectrum of investments. The choice of investment varies from equity to debt, and from domestic to international.

Portfolio Management Services

What are the types of portfolio management services?

A licensed portfolio manager offers you several classes of management which you can choose. Each one of them focuses on different goals with different motives. Notably, not all consumers are fit for everything and vice-versa. There are 4 types of portfolio management services.

1. Active Portfolio Management:

Active Portfolio management services are for those who possess high-risk capabilities. These portfolio managers generate maximum results by investing in an array of stocks from various sectors to minimise the risk. The investment decisions are made by doing a quantitative analysis of companies.

The managers look for the actual cost of the stocks and buy them when they’re undervalued. Later when their pricing goes higher, they sell it. Instead of the hypothesis of following the indexing of the market, they rely on the ratios to support their decisions.

In this strategy, the managers actively make investments in the fund. The results come with a combination of several approaches, like in-depth research, and market forecasting. Flexible market trends, shifts in the economy, and changes to the political landscape also leave an intense effect on its decision factor.

An active portfolio requires a good understanding of the business cycle in the market. This approach is good for risk-takers who aim for greater investment returns.

2. Passive Portfolio Management:

Passive portfolio management sticks to analysing a company’s fundamentals to understand its stock prices. In this strategy, portfolio managers use market hypotheses and try to reduce risk with a good return on investment. Gaining substantial profit for investors is the prime aim of this strategy.

The whole approach mimics the market index and expects the same results. Managers also buy the same indexed stocks as listed.

This portfolio can be structured as an exchange-traded fund (ETF) unit investment trust or a mutual fund. The only job here is to replicate the index but not select the assets to lower risks

This strategy is good for investors who are less likely to have risks. Moreover, this is a good and proven approach to gaining long-term financial profits.

3. Discretionary Portfolio Management:

Discretionary portfolio management allows the licence manager to make investment decisions on behalf of a client. As the selling and buying decisions are going to be managers, clients have nothing to interfere with but to observe the portfolio operations.

The goal is to maximise the profits. The managers make sure that any investment decision is based on clients’ capabilities of taking risks and their final investor goals.

Investment strategies are flexible here and are based on the manager’s concise choices.

4. Non-Discretionary Portfolio Management:

Non-discretionary portfolio management involves a manager as a counsellor. They are entitled to suggest a variety of investments as possible sources to gain profits. The managers or, in this case, advisors, are responsible for guiding a person to better stocks or trades. The final decision lies in the hands of the client.

Interestingly, once investors approve the suggested stocks, the advisors move forward with investing. But all the operations lie in the hands of investors.

Types of Portfolio Management Services

What are the benefits of portfolio management services?

  • Portfolio management suggests better stocks for investors curated to their needs.
  • They help in strategizing investment to offer the best-suited profit methods instead of stumbling on random choices.
  • Hiring a portfolio management system ensures higher profits as well.
  • Portfolio managers help investors structure their accounts. They take care of emergency funds in case the investor looks to sell the stocks to liquidate the amount.
  • These financial advisors are not there only to develop your portfolio. Good portfolio managers always look for ways to strengthen your understanding of financial concepts.
  • They offer a financial risk management policy.
  • A licensed Portfolio Management System offers you a transparent fee structure.

Why should you opt for portfolio management services?

opt for portfolio management services

Using portfolio services offers you a gripping hand over the market trend and profitable stocks. Investors, irrespective of class, budget, and risk abilities, want to make their accounts profitable and more importantly secure against losses.

A portfolio manager offers you a curated portfolio for investing your money. The goal is simple- making profits. However, methods and strategies differ from one investor to another.

The right strategy needs a well-researched understanding of the market, a single goal for the investment, and an understanding of the risk capabilities. A portfolio manager helps you and finds all your weaknesses and strengths.

Choose a Portfolio Management Services in India if

  • You have a significant amount of money.
  • Your understanding of investment is not up to the mark.
  • There is a lack of time to maintain track and restructure your investment.
  • Economic uncertainty and methods of safeguarding your investment are not known to you.
  • You want to diversify your investments such as stocks, bonds, and equities to gain better financial assets.


Portfolio Management Services are an asset for any investor. Making a financial decision is not as easy as it seems. There are complex trends, equations, political landscapes, market crashes, accidents, and companies’ personal fundamentals that decide the future of any trade.

Hiring search portfolio managers helps you create your customised investment plan to gain maximum profits. They also guide you in increasing your financial understanding through practical scenarios and inducting a conceptual understanding of the market.

They suggest better stocks, create personalised systems and offer a financial risk policy for your assurance of any challenging situation.

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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