Portfolio Management Services – An emerging investment option
It's hard to make money but it's harder to preserve it. If you earn money but don't invest it properly, inflation will erode your wealth. To preserve it, your funds should at least earn a rate of return that can beat the inflation rate. Everyone wants to maximize their returns on investment without capital erosion.
There are many different investment avenues such as fixed deposits, fixed income securities, equity, commodities, and mutual funds. Different products have different risks associated with them and different factors affecting their returns. To deal in each product you need very particular sets of skills and knowledge. Equities and commodities as asset classes require constant monitoring. A person who has earned money may not have required the knowledge, time or inclination to manage it. If you are someone who falls into this category, PMS is good option for you.
As clients go, portfolio management services (PMS) is best suitable for those who have a large surplus to invest, as the minimum portfolio size accepted by portfolio managers range between 25 lakhs to 5 crore. It helps if clients are inclined towards equity and commodity markets as these offer great returns and prove portfolio managers with the scope to create value out of the investments. And finally, the investments should have a reasonably long time horizon to reap full benefits of PMS.