PMS
Portfolio Management Services (PMS) is a professional investment service where an expert, called a Portfolio Manager, manages your investments like shares, bonds, and other securities. It is mainly designed for people with high net worth who want personalized investment management based on their financial goals and risk tolerance.
In PMS, your money is invested in a customized portfolio instead of a common fund where investments from multiple people are pooled. The Portfolio Manager decides what to buy and sell for your portfolio after understanding your needs, market conditions, and investment strategy. This service comes with a higher level of customization and active management, aiming to maximize returns while managing risk.
PMS can be categorized into two types: Discretionary and Non-Discretionary. In Discretionary PMS, the manager has full control and makes decisions on your behalf. In Non-Discretionary PMS, the manager gives you investment advice, but the final decision is yours.
PMS usually charges fees, which could be a fixed amount, a performance-based fee, or a combination of both. It is ideal for investors who can invest large amounts and seek professional and tailored investment management. However, as with all investments, there are risks involved, so understanding the terms is important.
