A Portfolio Manager is the entity, offering (PMS) services of advisory and/or the management of a portfolio of securities of the clients on their behalf. In India, a Portfolio Manager must be licensed from SEBI to be able to offer PMS to clients.
There are two types of PMS generally offered to the clients. They are as follows:
Discretionary PMS - It is the one, where the Portfolio Manager individually and independently manages the funds of each client in accordance with the needs of the client. The Portfolio Manager takes all the investment decisions, executes and manages the administration of the portfolio.
Non-Discretionary PMS - Where the Portfolio Manager generally makes recommendations to the clients and investment decisions are made by the client. The Portfolio Manager merely executes and manages administration of the portfolio on the directions of the client.
In India, the discretionary PMS is more popular and widely offered, since it offers the benefits of customised portfolio management by professional & experienced portfolio managers.
Discretionary PMS is an attractive investment product for investors owing to its many unique benefits, which stated below.
Professional management of your portfolio by experienced professionals
Personalised focus on your unique portfolio
Continuous monitoring and regular review of your portfolio
Scope for customisation, personalised portfolios based on specific needs / objectives of the investors
Hassle free operations with high standards of service and complete portfolio transparency / reporting
Controlled risk owing to strong internal processes / systems in portfolio management and research driven approach
Freedom from taking investment decisions and managing administration of portfolio