PORTFOLIO

MANAGEMENT SERVICES
(PMS)
 A portfolio is a collection of financial
investments like stocks, bonds, commodities,
cash, and cash equivalents, including closed-
end funds and exchange-traded funds (ETFs).

What is A portfolio may contain a wide range of assets

Portfolio? including real estate, art, and private investments.

Following are the two types of Portfolio are Market

Portfolio, Zero Investment Portfolio
 What is PMS?
• Portfolio management refers to managing an individual’s
investments in the form of bonds, shares, cash, mutual funds
etc., so that he earns the maximum profits within the
stipulated time frame.
• It refers to managing money of an individual under the expert
guidance of portfolio managers.
• In other words, it is the art of managing an individual’s
investment is called as portfolio management.
Need for
PMS
 Capital Security of
Growth Principal Amount

1
Objectives
2

of PMS 4 3
Consistent Portfolio
Returns Diversification
 ACTIVE PORTFOLIO
01 MANAGEMENT

TYPES OF PASSIVE PORTFOLIO

PORTFOLIO MANAGEMENT 02
MANAGEMENT
SERVICES DISCRETIONARY
03 PORTFOLIO MANAGEMENT

NON – DISCRETIONARY
PORTFOLIO MANAGEMENT 04
Who is a Portfolio Manager?
PMS - PROCESS

01 02 03 04 05

Security Portfolio Portfolio Portfolio Portfolio

Analysis Analysis Selection Revision Evaluation
 PMS -
CHARGE
How is PMS different
from a Mutual Fund? 06
&
Examples of PMS
What are the
Providers 05 various strategies
used by Fund
Managers to Invest
Disadvantag 04 in PMS?
es of PMS

03 Advantages
of PMS

Working of a 02
Portfolio
Management Services
(PMS) How to Invest In
01 PMS or Portfolio
Management
Services?
 Crux of the Discussion
1. What is PMS? - Portfolio management involves building and overseeing a selection of investments that will meet
the long-term financial goals and risk tolerance of an investor.
2. Who is an ideal PMS Investor? - The offerings are usually ideal for investors: who are looking to invest in asset
classes like equity, fixed income, structured products etc., who desire personalized investment solutions ,who
desire long-term wealth creation ,who appreciate a high level of service.
3. Tax treatment for PMS - The tax liability of a PMS investor would remain the same as if the investor is accessing
the capital market directly. The Portfolio Manager ideally provides audited statement of accounts at the end of the
financial year to aid the investor in assessing his/ her tax liabilities.
4. Are there risk involved in PMS Investments? - Yes. All investments involve a certain amount of risk, including the
possible erosion of the principal amount invested, which varies depending on the security selected.
5. Types of PMS – 1. Active Portfolio Management 2. Passive Portfolio Management 3. Discretionary Portfolio
Management 4. Non – Discretionary Portfolio Management
6. PMS Charge - It is charged at the time of buying the PMS only. Management Charges – Every Portfolio
Management Services scheme charges Fund Management charges. Fund Management Charges may vary from 1%
to 3% depending upon the PMS provider. It is charged on a quarterly basis to the PMS account.
THANK YOU