Portfolio Management Services in India- A Guide!


A portfolio is a collection of investments that individuals make to increase their chances of achieving a financial goal. In finance, a portfolio is also used to describe the different types of securities that an individual may hold. When looking to manage your investments, you may consider using portfolio management services. This blog will help you understand what portfolio management services are and what they can do for you.

1. Types of portfolio management services in India

1.1 Discretionary Portfolio Management Services

In discretionary portfolio management services, investors can choose their mix of assets, taking their risk tolerance and investment goals into account. This can involve active management or passive investing techniques such as indexing and can be provided either in person or by a third party. In discretionary PMS, the portfolio manager individually and independently manages the funds and securities of each client in accordance with the needs of the client. It is advisable to consult a professional who can provide you with updated information as well as guide you on which service would be suitable for you. 

1.2 Non-discretionary portfolio management services

A non-discretionary portfolio management service provides a framework for establishing, reviewing, and optimizing an investment portfolio. The service will generally provide recommendations on asset allocation and other investment strategies and help maintain track of performance against goals. This service can be availed by those who may not have sufficient knowledge to decide on an appropriate asset allocation for themselves and their investments or lack sufficient financial backing to manage a portfolio. This service is provided through investment platforms and institutional consulting services specializing in managing funds portfolios. 

2. How can you invest in portfolio management services? 

2.1 Through cheque payments

An individual can invest in portfolio management services through cheque payments. Individuals can deposit cheques into a portfolio management account and have the services manage their investments. This type of investment can be advantageous for those who want to avoid managing their assets but still want access to potential returns.

2.2 Through the transfer of existing shares

There are a few ways to invest in portfolio management services. One way is to transfer existing shares into the service provider’s account. This will give investors access to the provider’s expertise and tools and the security of knowing professionals manage their investments. Furthermore, it is advisable that the portfolio value transferred should be above the minimum investment criteria.

3. Advantages of portfolio management services

3.1 Easily customizable

An advantage of portfolio management services is that it allows the assignee to customize their portfolio. A portfolio management professional can customize portfolio management services depending on individual circumstances (such as the risk tolerance) and the investors’ goals. 

3.2 Reduces risk through diversification

Portfolio management services can help reduce the risk of an investment portfolio by helping to diversify the holdings within it. In addition, by carefully selecting the investments that make up a given portfolio, these services can help protect against any single security or sector experiencing significant fluctuations in price. 

3.3 Regular Portfolio Monitoring

Regular portfolio monitoring allows for early detection of potential risks and opportunities in the investments, allowing for better decision-making. By regularly knowing what is happening within an investment portfolio, investors can more effectively plan their strategies and make informed decisions when making financial decisions.

3.4 Professional management of portfolio

Portfolio management services offer many advantages for investors. First, the services are typically provided by experienced professional managers who have years of experience managing portfolios. This means that the portfolio is likely to be well-diversified and include a variety of asset classes, which will provide exposure to various forms of investments. 

After reading this blog, you should have a good idea about the various types of portfolio management services available in India. You can then decide which one best suits your needs and invest accordingly. However, it’s always important to seek professional advice to make the best decision for your portfolio. In this way, you can manage your money efficiently and prudently!