How Can I invest money in a SEBI registered PMS
Thursday, Jun 16, 2022
What is PMS
Investing in conventional equities may not provide high-net-worth individuals with the rewards they want for the risk they are willing to incur. Portfolio management services have risen to meet this need.
Portfolio management services (PMS) is a tailored solution for high-net-worth individuals (HNIs) that allows them more control over their money while generating higher returns. This service can be useful if you have a large sum of money to invest, such as a crore or more. Is it, however, the correct product for you?
How PMS schemes work
It is offered to knowledgeable investors by professional money managers and can be modified to fit specific investment goals. Through tailored portfolios, PMS providers invest directly in assets. So, with a discretionary PMS, one's account will be kept separate and operated according to his or her investment mandate, with an investment manager making all decisions in line with the investor's objectives.
Minimum amount to be invested
Unlike mutual funds, the investors' assets are not pooled into a single enormous fund here. Each client of Portfolio Management Service (PMS) has their own bank account and demat account. PMS requires a minimum investment of Rs 50 lakh. Your private Demat account allows you to view your portfolio on a daily basis. If you are an NRI, you must open an NRI PIS account before investing in PMS programmes.
Risk return benefit of PMS
The risk benefit return is significantly larger because there are more regulatory requirements in PMS than in mutual funds. Active management of funds with frequent buying and selling helps to beat market ups and downs. If you are a PMS investor, you may interact directly with fund management if you so desire.
Be an informed investor
Every PMS investor must ensure that the service provider should be registered with SEBI and not fall for dubious schemes and get scammed. SEBI license-holding firms have great transparency and regulatory requirements that must be taken care of.
Share this post on social media:
