What are Portfolio Management Services (PMS)?

PMS or Portfolio Management Services is a licensed and professional investment service offered to cater to the objectives of niche segment of long term investors.

The PMS industry in India is regulated by the Securities and Exchange Board of India (SEBI), which sets the guidelines and requirements for PMS providers to operate in the country. SEBI has prescribed a minimum investment corpus of Rs 50 lakh for individuals to be eligible for PMS services.

Portfolio management services (PMS) are offered by specialized financial companies to manage the investment portfolio of high net worth individuals (HNIs), UHNIs, NRIs, or institutions.

PMS providers invest on behalf of their clients in a customized portfolio of stocks, bonds, mutual funds, and other securities based on the clients’ investment objectives and risk tolerance. The PMS providers charge a fee for their services, which is typically a percentage of the assets under management (AUM).

PMS providers in India offer various types of portfolio management strategies, including value investing, growth investing, income investing, and quantitative investing, among others. They provide regular updates and performance reports to their clients and aim to achieve superior returns on their clients’ investments while managing risk effectively.