What is the minimum investment size to open a pms account
Thursday, Jul 27, 2023
In this article, we'll discuss what PMS portfolio management services are and how they work, as well as take a look at the PMS services available in India.
An Introduction to PMS Portfolio Management Services
As an investor, you want your portfolio to perform well regardless of market conditions. One way to increase the chances of achieving your financial goals is to work with a portfolio management service (PMS) provider. PMS services in India and the providers of PMS portfolio management services are regulated by SEBI. Green Portfolio is one of the top PMS services providers in India. Let’s understand PMS services in India!
What Are PMS Portfolio Management Services?
PMS Portfolio Management Services are professional management services provided by investment experts that can help individuals or institutions manage their investment portfolios more effectively. These services cater to high net worth individuals, family offices, and institutional clients. A PMS portfolio management service provider like us manages your portfolio with the primary intention of generating returns higher than the market.
PMS Services in India
India has many portfolio management service providers, managing a diverse set of schemes following different investment strategies. PMS services in India offer various investment solutions such as Equity, Fixed Income, Multi-asset, and Alternative Investments. These strategies are designed depending upon the client's financial objectives, risk profiles, and other constraints. PMS services in India are based on multiple strategies. These strategies are based on several strategies depending on the individual investor and the PMS service provider. Some strategies are value investing, growth investing, investing based on fundamental analysis, technical analysis, etc.
Minimum Investment Size
PMS portfolio management providers have a minimum investment amount criterion beyond which they provide their services. It is very important to note that SEBI (Securities and Exchange Board of India) has regulated the PMS services in India. SEBI has specified the requirement of a minimum investment of INR 50 Lakhs by investors. For this reason, PMS Portfolio Management Services are very different from other investment advisory services. PMS services in India were announced in 1993 by SEBI. So, about thirty years ago, the minimum investment required to receive PMS Portfolio Management Services was INR 5 lacs. It was in 2012 that the minimum investment size was raised from 5 lac rupees to 25 lac rupees. Then, it was only a few years ago in 2019 that the investment size was further changed to 50 lacs, where it currently stands.
Who are PMS services suitable for?
PMS Portfolio Management Services are professional investment management services wherein a portfolio manager overlooks an HNI - High Networth Investors Portfolio. PMS Portfolio Management Services are designed to help investors manage and grow their portfolios based on their financial goals, risk tolerance, and time horizon.
Since PMS services in India come for the minimum investment of INR 50 lacs, PMS portfolio management services are more suitable for HNIs (High Net worth Investors), family offices and institutional investors and not retail investors because the ticket size here is quite high.
For retail investors, Green Portfolio has smallcases - which are baskets of funds that are managed by our fund managers. These smallcases suit retail investors since the investment size is as low as INR 10,000 which can be invested for small individual investors. If you are a retail investor, check our smallcases here.
Conclusion
In India, there is a vast array of PMS portfolio management services providers that cater to a wide range of clients with different investment strategies. Green Portfolio, for example, studies and invests in majorly small cap and mid cap spaces. Our goal here is to provide investors good returns within their risk absorbing capacity.
Regardless of which PMS provider one chooses, the investor must do thorough background research on the provider, check their track record and credibility before investing.
PMS portfolio management services play an important role in helping high net worth individuals and family offices maintain their wealth and generate new wealth. PMS services in India are suitable for those investors who have the required minimum investment amount and are willing to surrender the control of their portfolio in exchange for expertise and research provided by the PMS provider.
Overall, PMS service providers can be an excellent investment option for those who want to achieve their financial goals through the assistance of experienced professionals with a proven track record and solid research capabilities. Know more about our PMS services here.
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