PMS Review

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Portfolio Management Services provides management services of funds that customers are willing to invest as their capital in the stock market. Today here in this blog, we will provide you detailed data related to PMS review.

Portfolio managers are recruited to bring the best return out of the investment to achieve the clients’ investment-related objectives. 

The responsibility of portfolio managers is to turn the future plans of the investors into a reality.

The client must research the services provider’s background, active clients, and services before selecting a suitable company in the market. 

Also, click here, if you want to know about How to Create Portfolio Like Warren Buffett?

Let’s have a detailed discussion on the Meaning of Portfolio Management Services.

PMS Meaning

PMS is the short term used for Portfolio Management Services. Clients come to the portfolio management services to ensure that the organization will assist them in accomplishing their future financial goals within the available resources. 

The person appointed for this job is known as Portfolio Managers. Their role is to make strategies for better results and to satisfy the client that has invested money to make profits out of the amount invested.

On the basis of research, investors can select any of the service providers present in the market. The research includes a background check, review, rating of the service provider, active clients, and service provided by them to their clients.

PMS Features

There are a few PMS Features that will enhance the quality of the service providers. They are as follows:

  • Assets Allocation
  • Investment Diversification 
  • Rebalancing Asset

Assets Allocation: it is an investment strategy that is used to allocate the assets in such a way to balance the risk of portfolio assets for achieving the financial goals of an investor. 

Investment Diversification: It is impossible to predict the final result and how the asset classes will behave on returns.

It will be a better option for an investor to invest in different sectors to reduce the risk factor and increase the level of gaining profits over a longer time period. 

Rebalancing Asset: The portfolio manager keeps a regular eye on the portfolio of an investor, and if the portfolio jumps off the risk appetite, then it’s the responsibility of the portfolio manager to rebalance the portfolio. 

Also, you have plenty of choices to choose among PMS Companies in India.

PMS Types

There are mainly four  PMS types. They have either their own importance, which helps the investor and fund manager get good returns on investment.

Active Portfolio Management: In this, the portfolio manager actively watches the market and tries to bring more return on investment as expected while setting a benchmark. 

The role is to give a good amount of profit to the investor by crossing the set benchmark by an investor so that he can meet the financial goals. 

In-depth research is done to make an investment decision to achieve the aim of getting high-value returns, and for this, they need to take a risk, but the strategy is made to invest in different sectors to reduce some level of risk.

A portfolio manager is required to be available at whatever time the investor is in need of him. 

Passive Portfolio Management:  This is also referred to as Index management as its working is completely opposite from Active Portfolio Management. The strategy is to get the same amount of returns on investment, as demonstrated in the index.

In this, the portfolio managers do not take many risks as their only motive is to get similar returns as displayed in the index and don’t try to exceed the benchmark.

The fee charged is lower than it is charged in the Active portfolio management. 

Discretionary Portfolio Management: This type of PMS is based on trust; the investor must have faith in Portfolio Managers that whatever decision he takes is for the betterment of an investor.

The investor’s role is to provide funds to the fund manager, and then he just sits back and has to wait for the results. The rest of the work has to be done by the Portfolio manager to bring the best results in front of investors.

Portfolio managers take all the decisions on behalf of investors, and investors should have confidence over the fund manager’s knowledge. 

To fulfill the objective of an investor Portfolio manager fees are high in rate as he has to put more effort into acquiring better results.  

Non-Discretionary Portfolio Management: Portfolio managers assist investors in making strategies and give ideas through which an investor can reach his financial goals. 

In this, a portfolio manager can only advise investors according to the market trends, but the final decision is taken by an investor.

Once the strategies are finalized by an investor then the role of portfolio manager comes, he performs according to the guidance of an investor. 

PMS Registration 

It is essential for the portfolio management service firm to get PMS registration under the Indian regulatory body i.e., SEBI. 

A non-refundable application fee is to be paid of 1 lakh for entering the market. 

Here are a few instructions for the PMS registration process: 

  • A non-refundable fee of Rs. 1 lakh as an application fee.
  • It is compulsory to fill the application form correctly. Otherwise, the form will be rejected by the board.
  • The participant needs to pay a registration fee of Rs. 10 lakh to get a registration certificate from SEBI. 
  • The expiry duration of the certificate is for 3 years; to renew the certificate, the participant has to apply 3 months before the expiry of the certificate. 
  • It is a must for an applicant to have a degree in finance and should have 10 years’ experience in the market. 

PMS Charges

To enjoy the services provided by the Portfolio Management service organization, investors have to pay some charges.

The charges are decided at the time of making an agreement between investor and service provider.Here are some of the PMS Charges to be paid by an investor are as follows: 

Entry load: When an investor enters the PMS, he has to pay an entry charge. 3% of entry load charges are taken from Portfolio management services. 

Management Fee: On a quarterly basis, service providers will charge fees from 1% to 3% as management charges. These charges are levied to manage the financial portfolio of an investor.

Profit-Sharing: The percentage of profit-sharing is decided while making the contract between the investor and the portfolio manager.

The percentage of profit-sharing may vary from one service provider to another. 

PMS Review Process 

Here in this section, we will see the procedure of Portfolio Management Services to fulfill the financial goal of investors are given below

  • The prime step is to identify the objective of an investor and what hurdles the manager will face in achieving financial goals. 
  • After the identification, the next step is to make an investment policy statement (IPS) . It is a document in which all the general information is listed and is between an investor and the portfolio manager
  • The strategies are then made on how to perform in the market to get a good amount of return so that the portfolio manager can help an investor achieve the goals. 
  • When managers are done with making plans and strategies, the next task is the execution of the plans and implementation of the strategies made to get the outcome.  
  • Monitoring is the next step, as it helps to evaluate whether they have reached a point where they want to while making plans and strategies.  

After evaluating, if they haven’t reached their desired level, then they should bring some changes in their investment plans and strategies.

PMS Review India

Here in this section, we will show our readers the top Portfolio Management services in India on the basis of some parameters, which are as follows:

  • Performance
  • Number of clients
  • Charges

Return on performance

Every investor wants to stand good in the market for this, they take the help from portfolio Management Services to enhance their performance.

If your investments are not providing good returns, you should sell that asset and reinvest in some other business to bring profit to you. 

For a long period of time, ASK has been providing PMS services, and it can provide a good amount of return on investment to the mid-term investors as the organization usually works with small-cap and mid-cap stocks.

By having the market experience of many years and on various occasions, their return rate has beaten the stock exchange. 

There are many other Portfolio Management Services that have bought good returns in recent years, such as Alchemy, Motilal Oswal & ICICI Prudential. 

A number of clients

Client satisfaction is the main focus of every service provider. If clients are happy, then it helps the organization to get new opportunities in the market. 

From the last 35 years, Motilal Oswal has satisfied its clients and has the highest number of client base than others present in the market. 

Other than Motilal Oswal, few other organizations have a huge client base such as ASK, Kotak securities & ICICI Prudential.

PMS Charges

Portfolio Management Services levy many charges including entry load charges, management fees, and profit-sharing charges. 

Entry load charges for many of the Portfolio management services are around 3%, and for managing investor’s portfolios, they charge management fees from 1% to 3 %.

The management fee may differ from one service to another.  

Among all the portfolio management services, the service provider with the lowest PMS charge is Invesco PMS and is quite flexible with charges. 

Along with Invesco, Unifi, Birla Sun Life & NJ Advisory also come in the category of providing low charges to their customers.


Portfolio management services help clients to meet their financial goals. Portfolio managers, with their strategies, built a structure to reach the investor’s future goals. 

Entry load, Management services, and profit-sharing are the charges that have to be paid by an investor to get the services of portfolio management. That is why you need portfolio management.

The allocation of assets is a scheme that is utilized in a way to allot the assets to manage portfolio risk for achieving the financial goals. 

This was the PMS review article, and we hope this will help you to know more about PMS as we have provided meaning, types, process, charges, etc. in this blog.

But in case if you still have any questions about this topic, you are free to ask below in the comment section. 

Thank You!

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