With the help of a research team, knowledgeable portfolio managers and stock market experts at Portfolio Management Service (PMS), a professional financial service, manage your equity portfolio. In their Demat Account, many investors have equity portfolios, but managing them can be difficult. PMS is a methodical way to maximize profits on your assets while lowering the risk component. It allows you to effortlessly make wise selections that are backed by substantial investigation and verifiable information. It also equips you more effectively to handle market difficulties.
Active Portfolio Management: The main objective of the portfolio manager is to maximize returns. The portfolio manager using the active portfolio management approach diversifies your investments across asset classes, industries, and companies in an effort to lower your investment risk. This leads to a higher turnover rate in contrast to the passive approach.
Passive Portfolio Management: This approach is cantered on set profiles that follow the general direction of the market. Portfolio managers would rather invest in index funds in this situation because they increase passively over time with little management. Despite having a low turnover rate, they provide decent long-term returns.
Discretionary Portfolio Management: In this approach, a particular portfolio is managed by the portfolio manager. The manager chooses a strategy that they think will work best for your portfolio based on your goals, risk tolerance, and investment horizon. Portfolio managers might suggest debt-oriented funds to a client who is risk averse and equity-oriented funds to an investor who is willing to take on more risk.
Non-Discretionary Portfolio Management: With this approach, you make the final investment decisions after receiving advice from the portfolio managers. The portfolio managers take the necessary action on your behalf as soon as you provide the go-ahead.