Portfolio Management Services

Investment portfolios usually consist of investments in a wide range of securities like stocks, bonds and cash equivalents. This combination depends on the investor's risk tolerance level, which affects the returns potential of the portfolio investments.

But, establishing a strong investment can be challenging especially if you are an amateur investor. It requires extensive knowledge regarding the market and the securities, to calculate the RRR (Return Risk Ratio- a calculation of potential benefits against potential losses) accurately. This is where Portfolio Management Services or PMS come in.

PMS offers tailor-made investment solutions for each investor according to their risk tolerance and financial capability to get the best returns. Choices regarding the solutions are related to debt vs equity investment, the risk-to-return balance and quite importantly, the time horizon of the investor, i.e. how long they are willing to invest.

There are three types of portfolio management services:

Discretionary

Investors don't have to make any financial decisions. All financial decisions and actions are taken by the portfolio manager.

Non-discretionary

The portfolio manager suggests possible courses of action and works according to the directions given by the client.

Advisory

Portfolio managers advise investors and help them make informed investment decisions. The investor executes the trade.