Get Familiar with Portfolio Management Services

What Are Portfolio Management Services?

High net worth investors (HNI) and ultra-high net worth investors (UHNI) who aspire to delve deep into the market to gain maximum returns often look to leverage the expertise of licensed portfolio managers or agencies dedicated to serving the same purpose.

When it comes to investments through portfolio management services, the minimum investment amount is INR 50 lakhs. The large sums of money call for expert Portfolio Management Services (PMS). It is offered by reputable portfolio managers across the globe.

Types of Portfolio Management Services (PMS)

1. Discretionary Portfolio Management:

With Discretionary Portfolio Management Services, all control over the portfolio and associated decisions is handed to the portfolio managers. It is up to them to devise an effective strategy in line with the investor’s requirements. The managers have the liberty to make investment decisions discreetly, without the approval of the investor.

2. Non-Discretionary Portfolio Management:

Non-Discretionary Portfolio Management Services require the portfolio managers to provide investment ideas in line with the investor’s vision. Investors make the final decisions when choosing among the multiple ideas suggested to them. The Portfolio Manager cannot make any investment decisions on their own accord.

3. Advisory Services:

The Portfolio Manager here solely acts as an advisor to the client and is not responsible for the investment/divestment of securities and/or administrative activities on the client's portfolio. It is the client that executes transactions based on the advice provided by the portfolio manager. These services will follow the guidance and directives issued by the regulatory authorities and the client.

Is Portfolio Management Services worth it?

The answer is a resounding yes. With years of experience, portfolio managers or agencies provide tailored investment solutions. They are professionals who specialize in determining key business objectives, drawing the right insights, and providing solutions based on intensive research, ensuring that every promising opportunity that presents itself is seized.

Multiple factors are taken into consideration before making any investment decision. Let’s take a closer look at some of the key benefits of portfolio management services that vouch for the convenience and efficacy that they bring to investors who aspire to scale their returns.

Key Portfolio Management Benefits

1. Transparency:

With PMS, investors have easy access to all data related to their investments at any given point. They can keep a consistent track of the portfolio status, holdings, and performance reports. Additionally, access to the portfolio manager builds trust.

2. Customization:

Portfolio Management Services provide tailored solutions to each investor, based on their specific goals and investment preferences. The very first step in the investment portfolio-building process is analyzing the investor’s goals. Portfolio managers also study the investor’s risk tolerance levels and investment horizon, along with other factors.

3. Flexibility:

Unlike equity Mutual Fund investment, PMS offers more flexibility. Portfolio Managers can make adjustments to the equity allocation for investors to be in sync with the current market conditions and trends.

Alchemy Capital Management - Portfolio Management Services in India

Alchemy Capital Management, established in 1999, is one of the leading providers of bespoke Portfolio Management Services in India. The SEBI-registered firm caters to high-net-worth individuals, family offices, and institutions. Managing and advising an AUM worth over USD 978 million, the firm serves a client base of ~1600 families as of September 30, 2023. Pioneers in the bottom-up stock-picking approach, Alchemy places a strong emphasis on research and long-term investments.

Guided by a disciplined investment approach, the company aims to deliver sustainable returns. With a legacy of over 20 years, Alchemy has built a reputation for trust, integrity, and expertise. Its stable and experienced team of investment professionals possesses deep industry knowledge, enabling the firm to adeptly navigate market cycles and trends.

This blog is for informational purposes only and should not be considered as an offer or solicitation to buy or sell any securities or make any investments. We recommend that readers seek independent advice before making any investment decisions. Please refer to our Disclaimer and Disclosures for more details.