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Beginner’s Guide To Portfolio Management Services

Portfolio management services are extended by wealth creation experts or portfolio managers. Portfolio management services are tailored to serve high net-worth individuals (HNI). Skilled portfolio managers take control of the capital on behalf of the investors and invest thoughtfully in financial assets like stocks, equity shares, debentures, and likes. Instead of taking a generic approach, portfolio managers fine-tune the investment strategy to align perfectly with the unique investment goals, risk appetite, and time frame of the investor. 

Major challenges faced by HNI investors 

  1. Over diversification of portfolio leading to a point where the marginal loss of expected returns exceeds the marginal benefit of reduced risk.
  2. Not enough time for thorough due diligence before investing.
  3. Active monitoring and management of financial assets with smart rebalancing to make the most of dynamic market conditions.
  4. Losing ownership of their capital with traditional mutual funds.
  5. Inefficient goal setting and planning bringing “let the stocks grow” attitude comes to the surface.
  6. Lack of investment tracking.

Types of Portfolio Management Services

  • Discretionary Portfolio Management – As the name suggests, this type of portfolio management vests a lot of power on the manager and gives them the flexibility to make the decisions on the investor’s behalf. The manager designs the investment plans, strategizes, monitors, and manages the investments while the investor reaps handsome returns. At Green Portfolio, we extend one the country’s best discretionary portfolio management service.
  • Non-Discretionary Portfolio Management – In this type of service, the portfolio is much less involves and serves more as an advisor to the investor. The portfolio manager recommends the financial assets to invest in and helps the investor build the best investment strategies.

3 things to keep in mind while investing in Portfolio Management Service

  1. Minimum Capital Investment

The minimum corpus to start your PMS journey is INR 50 Lac and has been set by the Securities and Exchange Board of India (SEBI). According to the risk appetite of the investor, liquidity needs, and investment goals of the investor, this capital is invested in a perfectly diverse portfolio of financial assets.

  1. Highly Transparent transactions

Portfolio management service is one of the most transparent approaches to investment where managers are bound by regulations to notify their investors regularly. As an investor, you will be notified about every move the manager makes and can monitor your capital through your custodian dashboard. You can get a clear picture regardless of whether your assets are over-performing or underperforming.

  1. Active management

Fund managers monitor and manage investments keenly regularly and rebalance the portfolio according to the needs of the dynamic market. This not only helps in reducing risk but also increases returns exponentially.

At Green Portfolio, we have a highly seasoned team of financial experts with a glorious track record of portfolio management. Generate fantastic returns with our SEBI registered experts.

 

 

 

 

 

  

 

Sreeram Ramdas

Sreeram Ramdas is a very promising Researach Analyst at Green Portfolio. He holds a BSc Accounting and Finance from University of Exeter Business School, UK.

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