Do you know about PMS Services in India? Well, if you do not then let us tell you that they can make you really rich. The returns that you may get from investments with PMS can be really high when you compare them with returns that you may get with investment in stocks all by yourself. Now, since we have gathered your interest, we will start discussing about PMS with you. Let us share all the details with you in a well-structured manner.
What is PMS? How does it work?
To begin with, PMS stands for Portfolio Management Services and they are a group of financial experts who would manage the financial portfolio of the client in return of a fee. The PMS services can help the investor in multiplying their portfolio or wealth by multiple folds. To give you a better idea, you must know that you deposit your money with PMS Provider and they will make decisions about buying and selling the equity. It is not done on basis of some speculations but the decisions are made after analysing the data in several layers.
The service is usually available for High Net worth Individuals and in most of the cases, the minimum investment amount with PMS is Rs 25 Lakhs. Also, there are two types of PMS services available in India. One of them is discretionary PMS and the other one is Non-Discretionary PMS. The basic difference between these two is that you get to make a decision in Non-Discretionary PMS whereas, you don’t get to make any decision in case of Discretionary PMS.
What are the Benefits of using PMS?
There are a lot of benefits of using PMS Services. Some of these are listed below
- PMS can help you in increasing your returns and this works to your advantage even if you do not have the financial knowledge about the stock markets.
- The PMS provider team is highly skilled and this is another advantage of the PMS. The portfolio is actively managed and your risk appetite is considered while investing the money.
- The portfolio managers also manage the risk and they deal with you directly. They will provide you with data and justifications as and when required.
- You can withdraw money as and when you want. This can work with different investment strategies.
What are the Best PMS in India in 2019?
Let us now look at some of the best PMS in India and you can certainly choose among one of these for making investments in 2019.
1. Porinju Veliyath Equity Intelligence – This is one of the best PMS available in India. Talking about Porinju Veliyath Equity Intelligence, the company was established in 2002 and since then it has been providing excellent services to the investors. The minimum investment amount here is Rs 50 Lakh. The fee charged by this PMS is 2% per quarter and in addition to this, they also charge 10% over and above 10% of basic earnings.
2. Motilal Oswal – Next on the list is Motilal Oswal and we are sure that you would be familiar with this PMS Services. It is also a stockbroker. This company was established in the year 2003 and the team that works with investors here are highly qualified. Here, the minimum investment is Rs 25 Lakhs and you can increase the amount of investment in multiples of Rs 5 Lakh. The fee for this PMS varies as per the portfolio returns.
3. Kotak – We also have Kotak on our list and this is also a discretionary type PMS. The minimum investment amount here is Rs 25 Lakhs and the provider basically offers two different types of Products for the investors. The Fee, in this case, is about 2.5% per annum and the company also has an exit load if the investment is redeemed in the first three years.
4. Ask India Select– On number 4, we have ASK India Select. If you do not wish to invest much then ASK India is for you as the minimum investment amount here is Rs 5 Lakh. In addition to this, the PMS has been delivering good returns since the past many years. The fee that is charged by Ask India Select is between 2.5% and 3.5%. You also need to pay the brokerage in this case.
5. ICICI – ICICI Bank also entered the investment banking services and it basically offers the discretionary type of service. For getting PMS from ICICI, you need to invest a minimum of Rs 25 Lakh and there are different portfolio management services offered by this PMS. The provider has a fee of 2% per quarter and there are other fees involved depending on the type of product you choose.
This was all about PMS. It should be noted that we compiled information from various sources and we have shared a general opinion about PMS in this article.
We would advise you to carry out your own research before you invest with help of PMS as we will not be taking any liability of loss that arises out of your investments.