What is PMS (Portfolio Management Services) ?

Portfolio Management Services

Professional portfolio managers provide portfolio management services (PMS), which are specialized investment services, to institutions or high-net-worth individuals (HNWIs) in order to manage their investments. In order to satisfy each client’s unique financial objectives, risk tolerance, and investment preferences, PMS offers specialised investment solutions.

PMS types:

  • Discretionary PMS: The portfolio manager makes all investment choices, including the purchase and sale of securities, without first getting the client’s consent.
  • Non-Discretionary PMS: The portfolio manager offers advice on investments, but customer consent is necessary before these decisions may be carried out.
  • Advisory PMS: The client makes all trade execution decisions, the portfolio manager just offers ideas and advice.

Important characteristics:

  • Customisation: Unlike mutual funds, which take a one-size-fits-all approach, PMS provides individualized investment strategies catered to the needs of each individual client.
  • Professional Management: With access to in-depth market research and market insights, professional portfolio managers provide their clients with a wealth of knowledge.
  • Transparency: Clients get thorough information and frequent updates on the performance, holdings, and transactions of their portfolios.
  • Flexibility: Various asset classes, such as stocks, fixed income, real estate, and alternative assets, can be integrated with PMS.


  • Knowledge and expertise: Professional portfolio managers’ knowledge and experience are at your disposal.
  • Personalized Approach: Investments are made in accordance with the unique financial objectives and risk tolerance of the customer.
  • Diversification: To spread risk, portfolio managers incorporate a variety of asset classes.
  • Performance tracking: Clients are kept updated on the status of their investments through regular performance evaluations and reports.
  • Taking into account Cost: Because PMS incur management fees, performance fees, and other related expenses, they may be more costly than mutual funds.
  • Minimum Investment: PMS often has a greater minimum investment requirement, which makes it more appropriate for high net worth individuals.
  • Risk: Compared to mutual funds, PMS may be riskier because it entails direct stock investments and active management.