Portfolio Management Service



The investment solutions extended by Portfolio Management Services (PMS) caters to a niche segment of clients, mainly high net worth investors. PMS invests in equity. However, there are fixed income investment products that also bet, most of the products are equity-linked.

#1 What Are The Types of PMS? 

Brokerages and mutual funds companies registered with SEBI offer PMS. PMS can be divided into two categories: Discretionary and Non-Discretionary. In Discretionary, the fund manager on behalf of the investor takes investment decisions. On contrary, in non-discretionary, the client takes the final decision, while the fund manager suggests investment options.

#2 What Is The Similarity Between PMS And Mutual Fund? 

The biggest similarity between PMS especially Discretionary and mutual funds is that a manager handles the money on the behalf of their clients.


#3 What Is The Difference Between PMS And Mutual Fund? 

One of the key differences between PMS and Mutual Fund is that in Mutual Funds investors get NAV that represents equity. On contrary, in PMS the investor directly invests in stocks vide a Demat Account owned by him, however, the fund manager has the power of attorney to operate the account.

#4 Is There A Minimum Investment Limit For PMS?

In PMS an investor either need to invest at least Rs 25 lakh or they can give stocks worth Rs 25 lakhs to the fund manager.

#5 How Does A PMS Works?

While you avail PMS services at Money Multiplier, a General Savings Account and a Demat Account are separately opened on the investor name. Thereon, all investments are made (shares are held) in the investors Demat Account only. Similarly, any income received of the investment made is directly credited to the investors General Savings Account.

While signing the PMS agreement, the portfolio manager gets the Power of Attorney for operating the bank and the Demat Account of the investor. As per SEBI’s instructions, a portfolio manager has to furnish a performance report to their clients every six months.

#6 Why Should You Invest In PMS?

Portfolio Management Services offer a customized investment portfolio to suit the investment goals of the investor.

#7 What is The Fees Of Portfolio Manager?

A Portfolio Manager may charge fees as per the agreement with the client. They may charge a fixed amount or a return based fee or a combination of both.

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