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Big investment amounts require personal attention. Unlike mutual funds, where your money is pooled with that of other investors, high-net-worth individuals (HNIs) need personalized investment strategies. This is where Portfolio Management Services (PMS) come in, offering tailored solutions to meet the specific financial goals of HNIs.

What is a Portfolio Management Service (PMS)?

Portfolio Management Services (PMS) are professional investment management services tailored to meet the unique needs of individual investors. Unlike mutual funds, which provide a standardized portfolio to a broad pool of investors, PMS offers a personalized approach. A portfolio manager allocates your investments across various asset classes such as equities, debt, real estate, and gold, aligning them with your financial goals, risk tolerance, and investment preferences.

Types of PMS

  1. Discretionary PMS: In this type, the portfolio manager has full control over investment decisions. The manager takes care of the portfolio, including asset allocation, buying, and selling, without needing to consult the investor for each transaction. This offers the investor the convenience of professional management without the need for day-to-day involvement.

  2. Non-Discretionary PMS: The portfolio manager provides advice and recommendations, but the final decision rests with the investor. The manager acts more like a consultant, offering insights while the investor retains control over the investment decisions.

  3. Active Portfolio Management: This involves frequent buying and selling of securities to exploit market inefficiencies and generate higher returns. It requires continuous monitoring and active decision-making.

  4. Passive Portfolio Management: This strategy replicates the performance of a benchmark index by maintaining a fixed basket of securities. It involves fewer transactions and lower costs.

How Does PMS Work?

  1. Understanding Client Needs: The portfolio manager understands financial goals, the ability to take risks, and the time horizon for the investor.
  2. Customized Portfolio Creation: Based on this understanding, a customized portfolio is created, which includes a mix of various asset classes like equities, debt instruments, real estate, etc.
  3. Active Management: The portfolio manager actively manages the investments, making adjustments as market conditions change to optimize returns and manage risks.
  4. Regular Monitoring and Reporting: The performance of the portfolio is continuously monitored, and regular reports are provided to the investor, ensuring transparency and keeping the investor informed about the status of their investments.

Benefits of PMS

  1. Personalized Attention: PMS offers a tailored approach to investment, ensuring that your unique financial goals and risk preferences are taken into account.
  2. Professional Management: With PMS, you have access to a team of experienced portfolio managers who have the expertise to navigate complex market conditions and make informed investment decisions.
  3. Diversification: PMS portfolios are diversified across various asset classes, reducing risk and enhancing the potential for returns.
  4. Flexibility: PMS allows for flexibility in investment strategies. Whether you prefer a more aggressive approach or a conservative one, your portfolio can be adjusted accordingly.
  5. Transparency and Control: Investors receive regular reports detailing the performance of their portfolios. In the case of non-discretionary PMS, investors also retain control over investment decisions.
  6. Tax Efficiency: Portfolio managers can optimize your investments to be tax-efficient, potentially enhancing your overall returns.
  7. Accessibility: PMS provides HNIs with access to exclusive investment opportunities that might not be available through traditional mutual funds or other retail investment products.
  8. Goal-Oriented: PMS can be specifically designed to meet long-term financial goals such as retirement planning, wealth creation, and legacy planning.


For high-net-worth individuals, managing large investment amounts requires a personalized and professional approach. Portfolio management companies in mumbai, provide the expertise, flexibility, and tailored solutions needed to navigate complex financial markets and achieve specific financial goals. Whether your goal is wealth preservation, capital growth, or achieving specific financial milestones, PMS offers a comprehensive solution tailored to meet your unique needs.