The only thing consistent in the stock market is change. With the gular happenings in the stock market, maximum portfolio management services returns are a dream for many. For this, you must turn to reliable PMS companies that are regulated by SEBI.
They will take care of all your investments, so you can sit back and enjoy the high returns. Also, managing portfolio investments on your own might take a toll on your mental health (and of course financial health as well).
The investment professional will assist you in achieving your investment goals while working behind the scenes. They will take financial matters into their own hands to ensure you enjoy the soaring source of revenue.
But with all said, the discretion to allocate power of decision making to funds managers lies in the hands of investors.
PMS is applicable to high net individuals.
PMS Returns Calculator
Do you want regular returns on your investments?
Specialized investment management personnel can be of help to you. The investment professional looks for avenues to reduce PMS investment risk and maximize Portfolio management services returns in India.
These can be achieved by using the PMS returns calculator provided on the portfolio management service you subscribe to. Also, to calculate the returns generated by the portfolio, the investment professional makes use of various methods.
Some of these methods are:
Holding period return: Here you calculate returns on investment across different time periods.
Cash flow adjustment: Here you can make use of the internal rate of return to adjust returns against cash flows.
Annual returns: if you are receiving Portfolio management services returns across multiple time periods, it’s better to annualize them for ease of calculation. Annual returns provide an average of money generated from the portfolio each year.
In addition to maximizing returns on the investment, otherPMS Features include:
If we talk about PMS types, we have to focus on the four prime types and their respective objectives. All these types have their respective Portfolio management services return expectations as well.
Further, the PMS returns calculator is very useful in determining the profits on each of these PMS types.
Let’s dig in!
Active Portfolio Management Service
In this type of PMS, you have to be at the forefront at all times. The investment professional will look for stocks that have the potential for higher profits in the future. They will purchase stocks at a less price and sell as the price climbs up.
This approach provides higher Portfolio management services returns than the market dictates.
In the active management approach, the focus is on generating returns higher than the market trend. To beat the market, the portfolio managers will take advantage of the market inefficiencies.
Thorough research will help the manager to identify and take advantage of market loopholes.
Portfolio management services returns, in this case, are in the range of 12%-15% for a 5-10 years investment horizon.
Here the investment manager will use two approaches for stock selection:
Top-down: In this investment approach, the portfolio managers conduct full market research. On the basis of market analysis, a decision is taken regarding the investment in stocks.
The selection of stocks is done on the basis of the expected performance of industries and sectors in the current economic period.
Bottom-up: Here the investment decision is taken keeping the market fluctuations and expected trends constant. The portfolio manager will select the stocks of the companies that have strong products, growth, and stable financial statements.
The basis of this approach is that strong companies perform better irrespective of market trends.
2. Passive Portfolio Management Service
Unlike the active portfolio management strategy, this approach relies on the basis of stock market ground rules.
Here the portfolio manager believes that if the low-cost investments are kept for a long time they will generate high returns.
Here the portfolio manager goes for the following types of stock selection:
Efficient market theory
The portfolio management services returns fall in the range of 10%-12% for a 5-10 years investment horizon.
3. Discretionary Portfolio Management Service
Here the entire responsibility lies in the hand of the investment manager. As an investor, you only have to provide the amount to be invested, your objectives, and the time period.
The investment manager will take the decision regarding the selection and investment of funds on his own.
This PMS type provides returns in the range of 8% to 25% for a 5-10 years investment period, depending upon the PMS provider.
4. Non-Discretionary Portfolio Management Service
Here the portfolio manager only acts as a financial counsellor. As an investor you will only receive suggestions from the investment manager about different investment avenues, the decision lies in your hand whether to go for them or not.
This type can provide you with a return of 7%-12% for 5-10 years duration.
To get the maximum Portfolio management services returns, choose the investment manager that never compromises with your investment objectives, and returns expectations.
Portfolio Management Services Average Return
The kind of Portfolio Management Services returns you get, also depends on the timelines i.e. the investment horizon or the holding period of your investment. Obviously, there would be a few PMS charges but honestly, those are not that high that can impact your PMS returns by a huge margin.
For instance,Motilal Oswal PMS provides returns in the range of 13% for 3 years and goes as high as 25% if your investment period is more than 10 years.
Similarly,Accuracap PMS provides returns as high as 16% for 3 years and drops to 14% for any investment exceeding 10 years horizon.
To conclude this article, we’d like to say that not one but multiple factors decide the Portfolio Management Services returns.
The portfolio management services average return is always a combination of PMS type, PMS provider and time period of the investment.
In case you are interested in using Portfolio management services, let us assist you in getting the best of returns from your investments. We hope this piece of information was helpful in solving your queries.
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