Portfolio Management Services (PMS)
PMS is offered by mutual funds register and brokers registered with SEBI. When you go for a PMS scheme, your Demat and bank account are separately prepared in your name and all investments are made in your name only. Portfolio management companies work as per Sebi’s instructions.
At Iventures Capital, we offer Portfolio Management Services to maintain your investment portfolio and meet long-term gains objectives
What is Portfolio management services?
Portfolio management services are a monetary instrument for investors to invest in a stock.
Also, this comes in two types: Discretionary and Non-Discretionary. It is an investment
portfolio in fixed income, debt, structured products, stocks, and other individual security.
In investment portfolio management the investor maintains the stock in a Demat account
owned by him, but the portfolio manager has the power of attorney to manage it.
Types of Portfolio Management Services
The different types of portfolio management services are
- Discretionary Portfolio Management: In Discretionary Portfolio Management, Investors do not need to make any financial decisions.
All financial decisions and actions are taken by the portfolio manager.
- Non-discretionary Portfolio Management: In Non-discretionary Portfolio Management, Financial decisions are not made by Investors. The portfolio manager is responsible for making all financial decisions.
- Advisory Management: In Advisory Management, Portfolio managers notify investors and assist them to make informed investment decisions. With Portfolio Management companies like Iventures Capital, we hire a portfolio manager who has to give an investor a performance report once in six months as per the SEBI (Securities and Exchange Board of India) guidelines.
How do Portfolio Management Services Work?
Portfolio Management Services(PMS) scheme works with a bank account, trading account, and Demat account.
All these accounts are separately opened in the name of the customer and all the investments are made separately. On the basis of that, all the investment and dividend coming will be credited to a particular bank account and shares will be organized in the Demat account of an individual.
What are the Benefits of Investment Portfolio Management Company?
- All the debts and stocks of a portfolio are controlled and professionally handled by an expert.
- You get to invest across asset classes – equity, mutual funds, gold, and debts.
- No limit to investment in any financial portfolio management.
- You get expert advice, they work as per your requirement and your segment
Frequently Asked Questions about Portfolio Management Services
What is Portfolio Management Service (PMS)?
Portfolio Management Services(PMS) is an investment portfolio management in which the investor maintains the stock in a Demat account owned by him, but the portfolio manager has the power of attorney to manage it.
What is the Difference Between Mutual Fund and Portfolio Management?
There in PMS, there is not standardized and publication of data on the other hand at mutual
funds holds Standardized method of representation of data. In portfolio management, The
Minimum ticket cost Rs. 50,00,000, and in mutual funds SIP Rs. 1000Lump-sum Rs. 5000.
Is PMS better than Mutual Funds?
Yes PMS is better than mutual funds. As in Portfolio Management Services(PMS), Individual portfolios are separated from other investor’s behavior, in mutual funds the accumulation of all the investors’ in fund results in the overall performance of a fund.
What is the purpose of a Portfolio Management Service?
It is an investment in fixed income, cash, stocks, debt, and other individual securities to make an individual earn a dividend.
How is PMS Taxed?
Profits from PMS will be interpreted as normal Capital gains and equity taxation rules will be implemented. This means that any short-term capital gains (before 1 yr) will be taxed at 15% and any long-term capital gains will be taxed at 10% (after 1 lac limit per financial year) without indexation benefits.
What is the Minimum Amount for PMS?
The Minimum Amount for Portfolio Management Services(PMS) is ₹50 lakhs.