In the present day, the financial markets are quite complex, with each investor having his or her own specific financial needs based on the financial goals and risk appetite. But ultimately, every investor aims at maximizing returns on his/her investment, along with capital protection. This calls for professional management of investments for attaining investment objectives.
By definition, portfolio management is nothing but allocation of assets that is the process of deciding the distribution pattern of an investor’s wealth among varying asset classes, which may or may not be in different countries, for the purpose of investment. The process depends on the level of risks that the investor is ready to take as well as her or his investment constraints and goals.
Keeping in mind the stock markets’ unpredictable nature, there is a requirement of being equipped with strong research and expertise for taking the right decision. Portfolio management is quite a challenging task as it requires one to strike a balance between the restricted choices for ensuring adequate earnings with adequate safety.
An investor’s needs and requirements keep on changing with his or her age, financial status and future plans. Additionally, the various stages in an investor’s life cycle affects his or her return and risk preferences.
Since management of investments in equity involves factors like experience, right mindset, knowledge, time and constant tracking of share market happenings, a person expert in this job, called a portfolio manager, is roped in. He/she advises, manages as well as administers the funds and securities on behalf of the client.
Hence, Portfolio Management Services refer to the science and art of taking decisions regarding investment policy and mix, aligning investments and objectives, asset allocation for institutions and individuals, and balancing performance and risk. This specialized service offers numerous customized investment strategies for capitalizing market opportunities.
PMS services are typically availed by high net-worth individuals as the minimum investment is significantly high. Since the professional managers handle your investment portfolio, this makes the address of personal preference immensely possible, in addition to flexibility and freedom of attaining financial goals.
Portfolio Management Services are very essential in the present world as getting more and more complex, with number of exotic financial instruments increasing. With all these complexities, building and then managing portfolio on your own can be a herculean task. Other than that, you may not have extensive knowledge about all the investment alternatives. This is where your portfolio manager comes into help and makes managing your portfolio easy.