Benchmark Investments

Portfolio Management Service is tailor-made customized professional investment service where qualified and experienced portfolio managers backed by a research team manage portfolios on behalf of clients instead of clients managing themselves. Portfolio Management Services are regulated by Securities and Exchange Board of India (SEBI) under PMS Regulations.

PMS construct investment portfolios across various investment options and portfolio managers take care of the investment portfolio. Investors must select suitable investments to attain financial goals based on risk profile. Investment Portfolios consist of investments across stocks, nifty linked debentures, global equity, arbitrage, alternate ,fixed-income instruments, commodities, real estate and gold, etc.

Portfolio management services help investors maximise returns over time by focusing on the time horizon, risk profile and investment objectives.Portfolio management services are popular among HNIs, HUFs, partnership firms, NRIs, Association of Persons, Sole Proprietorships etc. Portfolio management services specify a minimum ticket size for investor portfolios.

For instance, PMS started with a minimum ticket size of Rs 5 lakh in 1993, subsequently hiked it to Rs 25 lakh. Moreover, SEBI further hiked the PMS ticket size to Rs 50 lakh in November 2019.

There are Broadly Two Types of Pms

Discretionary PMS

The Discretionary Portfolio Management Services portfolio manager has complete control over the portfolio and can adopt any strategy to achieve investment objectives. Investment Decisions are entirely at the portfolio manager’s discretion,

Non-discretionary PMS

Under Non-Discretionary Portfolio Management Services, the portfolio manager gives investment ideas. However, clients decide whether to take up these investment ideas while the execution of trades rests with the portfolio manager. In Non-Discretionary Portfolio Management Services, the fund manager suggests investment strategies and works according to the direction given by the client.

How is PMS different from a Mutual Fund?

These are some of the most important parameters that help identify the differences between PMS and mutual funds.

Parameters	Portfolio Management Services	Mutual fund
Size of the investment	One must invest at least Rs. 50 lakhs.	Minimum investment start from Rs. 5000 & via sip its Rs. 500 only
Risk	Risk is optimised per an investor’s suitability.	It is relatively less risky because of portfolio diversification.
Transparency	Portfolio management services ensure complete transparency. Investors can easily track the purchase and sale of securities, date of transaction, brokerage, manager’s fee, etc. This helps investors keep a tab on the revenues and expenditures.	Mutual fund investors receive a monthly report of their final holdings and total expense ratio (quarterly).
Customised solutions	Portfolio management services extend customised solutions. Investors can pick either a large-cap or mid-cap portfolio depending on their requirements.	Mutual funds do not necessarily come with such customisable options. Investor can choose different schemes
Flexibility	PMS does not come with strict terms or fixed objectives. This allows managers to take aggressive cash calls amidst impending risks, invest or even maintain a 100% cash position. This offers protection against major market crashes.	Mutual funds come with strict terms and follow fixed objectives. Hence, there is not enough flexibility for fund managers.
Accountability	PMS managers are directly answerable to investors.	Mutual fund managers do not have any obligation to answer to investors directly.
Tax Implication	Every time the manager sells a share, investors realise a capital gain or loss, which subjects them to taxation.	The schemes have pass-through status. It allows fund managers to buy and sell stocks multiple times without attracting any tax. Instead, investors incur tax on selling fund units.
Suitability	PMS is most suited for affluent investors with a high net worth. This niche segment often includes HUFs, sole proprietorship firms, partnership firms, institutional entities, etc.	Mutual funds are more suitable for general investors.

Benefits

Individual investment plan

PMS presents plan as per individual income, budget, age and ability to undertake risks.

Minimizes risk

Minimizes the risks involved in investing and also increases the chance of making profits.

Diversification

Diversification of portfolio for risk management

Higher returns

PMS can be more aggressive with potential to generate higher returns

Leverage

Offers various themes which help leverage different economic situations

Fund manager

High accountability of the Fund Manager

NOTE : Benchmark Investments is only offering distribution of PMS services for some of good track record pms in India and not registered as SEBI Portfolio Management Services (PMS).

Presentations

ASK Investments Manager Motilal Oswal Ambit Capital Icici Pru Kotak

Disclaimer

Benchmark Investments only acts only as a mediator between clients and the company inviting/accepting PMS we do not run our own PMS & AIF

The information provided on this website is to help investors in their decision-making process and shall not be considered as a recommendation or solicitation of an investment or investment strategy.

This document is marketing material for a retail audience and does not constitute advice or recommendations. Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amount originally invested.

There are risks associated with fixed income investments, including credit risk, interest rate risk, and prepayment and extension risk. In general, bond prices rise when interest rates fall and vice versa. This effect is usually more pronounced for longer-term securities.

Stock investments have an element of risk. High-quality stocks may be appropriate for some investments strategies. Ensure that your investment objectives, time horizon and risk tolerance are aligned with stocks before investing, as they can lose value.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

The contents herein mentioned are solely for informational and educational purpose only.

Please consult your CA / Tax expert for taxation before investing.

The contents herein above shall not be considered as an invitation or persuasion to trade or invest. We accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon.

The value of investments can fall as well as rise. You may get back less than what you originally invested.