Is PMS a Good Investment
PMS (Portfolio Management Service) are generally provided to an exclusive set of clients where they are provided with a personalized approach towards investing through products like equity, debt funds, mcx and other financial segments.
Among the different investment options available in India, PMS services are often overlooked for one reason or other. In this article we will discuss about the different aspect of PMS services.
PMS Services is primarily associated with the High-Net-worth Individuals (HNIs), the fee one client needs to pay is based on the initial contractual agreement between the both the parties and is generally a specific percentage of the overall returns provided by the PMS service.
To gain a better answer to the question- Is PMS a Good Investment? We need to understand the advantage and disadvantage provided by PMS service.
Advantage of PMS Service
1. Higher Return- As the portfolios are managed by professional fund managers with years of expertise who ensure to meet the client’s expectations to provide the higher return to the clients.
2. Autonomy of Portfolio- Investors who is looking for PMS service will enjoy complete autonomy over their portfolio.
3. Investing Regularly- PMS service will help in regular and systematic investment which help to diversify their portfolio. Making small investment regularly can multiply profit with good risk and reward ratio.
4. Right Decisions- As we all know investing is all about picking the right stocks at the right time and some investors can find managing a portfolio a hard task because of lack of knowledge. As in PMS service portfolio managed by fund managers will help to pick right stock at right time.
5. Ease in Tracking Investments- Investing in multiple assets can sometimes be confusing hence having diversified portfolio managed by professionals affords an investors ease in keeping a track of all assets.
Disadvantage of PMS Service
Likewise, it’s time to discuss the disadvantage of the PMS Service, so we have mentioned some of the disadvantage below.
1.Minimum Investment Capital- As PMS service require huge initial investment amount so it is not suitable for all investors small traders cannot choose PMS Service. This can prove to be a hindrance for many investors.
2. Diversification of Portfolio- Investing across various financial instruments can work in our favour, and also have a negative impact on your portfolio. Sometimes investors can go overboard with this diversification task.
Is PMS a good Investment? In short, yes. This is the best thing to invest in financial market. Here, the investors get their portfolio managed by professional fund managers with adequate experience which help investors to meet their goals.
An investor who lacks the experience and expertise in investing can subscribe to PMS service where the investors enjoy complete autonomy their portfolio.
If you do not have any account and you wish to open one visit the following links.
1. To open your account with Alice Blue
2. To open your account with Stoxkart
3. To open your account with Angel Broking
4. To open your account with Zerodha
5. To open your account with Upstock