Portfolio Management Services have accelerated their pace in recent times. Investors who are unable to actively look after their investments, search the suitable investible security, keep track of their movement, and make the right move at the right time are relying on expert enterprises to render these services.
But once you have decided that now you are ready for engaging with a PMS provider, which one to choose and on what parameters?
Today, in this article, we will be answering all the questions surrounding Portfolios and the Best PMS in India Providers.
Table of Contents
What is Portfolio Management?
Portfolio, in its loose sense, is a cover for carrying loose papers, etc.; in our context, it is the collection of investments. These investments can be of multiple types like stocks, bonds, mutual funds, commodities, cash, ETFs, etc., or a concentrated one which comprises securities of a single type like stocks.
Services like Portfolio Management demand well verse knowledge of the securities market, extensive experience in dealing, and a strong hold on understanding the market dynamics. Numerous individuals entrust the portfolio management houses with their income and savings to protect the funds and invest them in growth prospective securities.
For these Portfolio Management Services, the entity is entitled to receive some remuneration from its clients in the form of commission, fees, or charges. These charges are implied on grounds established upfront while undertaking the services.
No.1 – Motilal Oswal PMS
Motilal Oswal is one of the oldest and most successful full-service stock brokers in India. They have been proffering services to millions of customers since 1987. Led under the leadership of Mr. Ramdeo Agarwal & Mr. Motilal Oswal as the founders, the company has introduced various breakthrough techniques and means for investment and trading.
One of the strengths of this entity is its Portfolio Management Services and ranking as number 1 in our list. They have multiple types of portfolio strategies to cater to varied customers and form their unique and effective portfolio. Motilal Oswal PMS is one of the Top Portfolio Management Service.
No.2 – Ask PMS
Second, on our list of the top Portfolio Managers is Ask PMS. Another successful enterprise operating in India, founded in 1983, offers portfolio management services alongside other well-known financial services.
They offer both discretionary and non-discretionary Portfolio services. Ask PMS currently has portfolio strategies such as ASK Financial Opportunities Portfolio, ASK Growth Portfolio, ASK India Select Portfolio, and ASK Indian Entrepreneurship Portfolio.
No.3 – Alchemy PMS
Alchemy Pvt Ltd was founded by the most successful investor in India, Mr. Rakesh Jhunjhunwala, in association with Mr. Lashit Sanghvi. The entity put forth its foundation in 1999 and has been flourishing ever since.
Alchemy is registered with the Securities and Exchange Board of India as Portfolio Management Service Provider and delivers its services to clients located in different parts of India.
How to select a good Portfolio Management Service
In general, there can be any probable outlooks while comprehending the best Portfolio Management Service Providers depending on the preconditions of the investors.
Whoever you choose as a portfolio management service provider should be able to manage your investments proficiently and should be an entity that you can rely on with such sensitive matters. They should be able to navigate the funds in a profitable direction.
Some of the aspects we ponder necessary and essential would be:
- Return on investment: This is the first constraint that will attract or detach prospective clients from starting their journey with the entity. Return on investment is the yield achieved on the initial investment over a period of time.
- Performance: Another essence of a good portfolio manager is efficient performance. This will include whether the manager is capable of keeping its promises of returns and the time period taken to achieve the promised goals.
- Client base: The total number of clients will reflect upon the reality of the entity, how many people actually trust the organization with their funds for the long run, and the type of plans and strategies they opt for.
- Charges: In case the charges of the portfolio manager are high, its proportion on the profit of the investor will become higher, leaving the investor with lower returns. Therefore, the charges should not be too excessive so that they do not become a liability for valuable customers.
- Services: Portfolio Management Service Providers in the present climate lay down multiple choices, whether it’s in their primary portfolio services or other incidental services. This way, the customers are open to choosing as per their suitability and ease.
- Support: Portfolio managers need to stay in touch with the customers. Though many of the important decisions regarding the investment are entrusted to the managers, the customers must be involved and should be updated timely.
- Experience and goodwill: The number of years a Portfolio Manager has spent in the financial market largely steers their perception of investment and understanding of its variations. Also, not just the experience but its reputation too is a driving force.
Benefits of Portfolio Management
A portfolio management service provider assists and introduces investors to the hidden gems of this market. They maintain a close relationship with their clients in order to understand and satisfy their investment goals.
There are thousands and thousands of securities available in the market currently, but which one is suitable, and which one to avoid? Everyday individuals cannot easily comprehend these tactics; it requires deep knowledge and years of experience to become even slightly close to acknowledging the profitable stocks and predicting their future position. Therefore, investors pin their hopes and funds in the hands of Portfolio Managers.
Conclusion
Portfolio Management Services is a tailored business where the service provider invests the funds of its customers in different types of securities, forming a unique bunch, known as a portfolio, to rake in profits on the investment on account of the investors. In return, they charge a certain proportion of the investment or/and the profit from the investors.
These services have secured their distinct position in the current market. Investors do not possess in-depth knowledge of securities and cannot engage day and night searching and mapping securities, and in such cases, portfolio managers come very handy for them.
