a) Private Equity Investments into Startups, SMEs and other promising projects
b) Investment in Equity & Debt Securities
c) Investment for short-term returns by trading strategies
Portfolio Management Solutions is an investment portfolio in Stocks, Debt and Fixed Income products managed by a professional money manager. As you invest in PMS, you own individual securities unlike a mutual fund investor, who owns units of the entire fund. This investment plans enables the investor to purchase a stake in a good company, while the company selling the stake receives capital infusion to grow its business. As an investor you have the freedom and flexibility to tailor your portfolio to address personal preferences and financial goals. Although portfolio managers may oversee hundreds of portfolios, your account may be unique.
Why Should You Go For PMS?
1) Professional Management: Professional management of portfolios with the objective of delivering consistent long-term performance while controlling risk
2) Continuous Monitoring: It is important to recognize that portfolios need to be constantly monitored and periodic changes made to optimize the results
3) Risk Control: A research team responsible for establishing the investor's investment strategy and providing the PMS provider real time information to support it, backs any firm's portfolio managers
4) Hassle Free Operation: A customised service for the investor. The fund management team takes care of all the administrative aspects of the investor's portfolio with a periodic reporting (usually daily) on the overall status of the portfolio and performance
5) Flexibility: The Portfolio Manager has fair amount of flexibility in terms of holding cash (can go up to 100% also depending on the market conditions). He can create a reasonable concentration in the investor portfolios by investing disproportionate amounts in favour of compelling opportunities
6) Transparency: PMS provide comprehensive communications and performance reporting. Investors get regular statements and updates from the fund management house or team. Web-enabled access, in some cases, ensure that the investor is just a click away from all information relating to the investment. The account statements give a complete picture of which individual securities you hold, as well as the number of shares you own. It will also usually provide the current value of the securities owned, the cost basis of each security, details of account activity(ies) like purchases, sales and dividends paid out or reinvested, portfolio's asset allocation and portfolio's performance in comparison to a benchmark
7) Customised Advice : PMS can be structured to automatically exclude investments you may own in another account or investments you would prefer not to own. For example, if you are a long-term employee in a company and you have acquired concentrated stock positions over the years and have become over exposed to few company's stock, a separately managed account provides you with the ability to exclude that stock from your portfolio.
Who, If and When
The Investment solutions provided by PMS cater to a niche segment of investors. The investors can be Individuals or Institutional entities with high net worth. The offerings are usually ideal for investors: who are looking to invest in asset classes like equity, fixed income, structured products etc, who desire personalised investment solutions, who desire long-term wealth creation and who appreciate a high level of service.
Apart from cash, the investor can also hand over an existing portfolio of stocks, bonds or mutual funds to a Portfolio Manager that could be revamped to suit his profile. However the Portfolio Manager may at his own sole discretion sell the said existing securities in favour of fresh investments. Meanwhile, the tax liability of a PMS investor would remain the same as if the investor is accessing the capital market directly.
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