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At Right Horizons, we understand that when you’re looking for portfolio management services (PMS), you’ll find several types of portfolio management services available that cater to different investment styles and preferences. Portfolio management services are professional investment solutions designed primarily for high-net-worth individuals who want expert management of their wealth, typically requiring minimum investments of around ₹50 lakh.
Before diving into the types, it’s important to understand how to select the best portfolio management services in India and how to evaluate PMS provider performance. Understanding why PMS is taking the investment world by storm can also help you make informed decisions.
The most common way to categorize portfolio management services is by who makes the investment decisions. This classification directly impacts how involved you’ll be in your investment strategy. For investors looking at different risk profiles, you might consider whether you’re a conservative investor, aggressive investor, or risk taker.
With discretionary PMS, your portfolio manager has complete authority to make investment decisions without seeking your approval for each trade. Think of it like hiring a chef who plans the menu, shops for ingredients, and cooks without asking you about every ingredient.
Best suited for:
Non-discretionary PMS operates more like a collaborative partnership. Your manager provides investment recommendations, but you retain the final say before any trades are executed. It’s similar to having a financial advisor who presents options but waits for your approval.
Ideal for:
People who prefer maintaining control while using expertise
With advisory PMS, you’re essentially hiring a consultant. The manager provides advice and recommendations, but you make all final decisions and execute trades yourself. You might wonder – why choose this over doing it alone? The answer lies in accessing professional research and market insights while maintaining complete autonomy.
Perfect for:
When comparing different service types, you might want to understand the PMS vs mutual funds debate to see which option aligns better with your investment goals.
| Management Style | Strategy | Risk Level | Typical Returns |
|---|---|---|---|
| Active Management | Frequent trading, market timing | Higher | Potentially higher |
| Passive Management | Index tracking, minimal trading | Lower | Market-level returns |
You might also wonder about the types of investments these services focus on:
Learn more about creating a balanced portfolio and investment diversification techniques for optimal results.
For those interested in sector-specific approaches, explore Right Horizons’ focus sectors and understand sector-specific risk analysis.
Technology has introduced robo-advisors as a cost-effective alternative to traditional PMS. These algorithm-driven services automate portfolio construction and rebalancing, making professional management accessible at lower minimum investments.
Custom or personalized PMS represents the premium tier, where every aspect – from asset allocation to ethical filters – is designed to meet your requirements.
Before selecting a PMS type, consider these important factors:
Understanding misconceptions about PMS risk and learning about risk management in portfolio management can help you make better decisions. Additionally, consider PMS lock-in periods and exit strategies before committing.
To choose the right portfolio management service:
For additional guidance, explore our comprehensive resources on wealth management tips for families and investment strategies for risk mitigation. You can also take advantage of our free portfolio scan to assess your current investments.
Remember, the best portfolio management service aligns with your financial goals, risk appetite, and desired level of involvement. Whether you choose discretionary, non-discretionary, or advisory services, confirm your provider offers transparency, regular communication, and a proven track record in your preferred investment approach.