What is better PMS or Mutual Funds? This is the question all investors have when they have a lump sum to invest as most of them have tasted the performance of mutual funds and are new to PMS i.e. Portfolio Management Services and hence are a bit more confused to opt for PMS. We at Arthashastra Investment Managers Pvt Ltd help clients to identify weather his risk profiling suits PMS or Mutual Funds. At Arthashastra we also offer a wide range of PMS from theme based to sector specific to diversified and also help clients take an informed decisions.
Would like to explain this with the help of an example
Sandesh is successful in his field of marketing and is doing well at his job, he has recently got his annual bonus of Rs.20lakhs and he is now confused where the money should be invested as he has hears about PMS which gives better returns than Mutual Funds but he has experience in investing in mutual funds and has made decent returns so far on his investments so with this confusion he visits Arthashasta Investment Managers Pvt Ltd to know what is better PMS or Mutual Funds.
So we explained Sandesh,
Only similarities between Portfolio Management Services (PMS) and Mutual Funds is that your money is managed by well qualified and a professional fund manager.
Wherein in PMS the portfolio constructed is independent and flexible and customizable on the other hand in Mutual Fund the funds are gathered into large pool and then invested so personal customization and flexibility like PMS is not possible in Mutual Funds.
Another positive of PMS is that you will ha have option to opt from Discretionary and Non Discretionary where you can control what goes in your portfolio unlike in Mutual Funds the option is not available. The fact of the matter is that Portfolio Management Services (PMS) is a product that is catered and is designed for high net worth individual as the sum of their investment is huge and hence a personalized portfolio is required further they do not mind additional paper work and pay additional for the personalized services that is offered.
Hence for a small investor one time lump sum in Mutual Funds is better option unless there is a need for diversification in their portfolio and PMS can be invested into.
For further details about investment into PMS and Mutual Funds contact Arthashastra Investment Managers Pvt Ltd.
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