Expert-led investing in mutual funds, bonds and more
Portfolio Management Services are offered by investment experts to grow your wealth and achieve financial goals using instruments like stocks, mutual funds and bonds.
Assets Under Management
Achieve your financial goals & create long-term wealth
Get full visibility of all transactions in your portfolio
Invest in a customised asset allocation that suits you
Diversify your portfolio and reduce investment risks
Get professionals to optimise your portfolio regularly
Get access to a dedicated relationship manager
PMS helps you invest in stocks, MFs and other securities like bonds and ETFs.
Total assets managed by PMS and mutual funds is a whopping Rs. 66 lakh crore.
While investors use PMS and mutual funds to invest in the stock market, they are different in their structure and approach to investing.
PMS services can have three types of controls based on who approves and executes portfolio manager recommended transactions, and one service can have all three.
|Discretionary PMS||Non-Discretionary PMS||Advisory PMS|
|Who makes buy and sell recommendations||Portfolio manager||Portfolio manager||Portfolio manager|
|Is investor consent required for execution?||No||Yes||Yes|
|Who executes the transactions?||Portfolio manager||Portfolio manager||Investor|
|Advantage||An expert portfolio manager is in charge of all the decision making||Investor has control over which transactions are executed||Investor has full control over the portfolio|
|Disadvantage||Investor may not agree with some investment decisions but can’t stop the portfolio manager from executing them||The time lag between giving recommendation and getting consent may result in delay and investor getting higher price for stocks||Investor is likely to act emotionally and may miss out on good investment opportunities|
|Availability||Most common||Not very common||Rare|
Market capitalisation tells us about the size of the company. Each strategy offered by Portfolio Management Services invests in companies belonging to a particular market capitalisation.
|Large cap||Multi cap||Mid cap||Small cap|
|Primarily invest in||Largest (top 100) listed companies of India||Across large, mid and small cap listed companies||Medium sized listed companies of India||Smallest listed companies of India|
|Investment risk||Relatively lowest||Medium||High||Relatively highest|
|Potential returns||Relatively lowest||Medium||High||Relatively highest|
|Strategy benchmark||NIFTY 50 or NIFTY 100||BSE 200 or BSE 500||NIFTY Mid Cap 100||BSE Small Cap|
|Potential to beat benchmark||Lowest||Medium||High||Highest|
|Availability||Not very common||Quite common||Quite common||Quite common|
At Dezerv, we offer mutual fund based PMS strategies and not stock based.
The SEBI mandates a minimum investment of Rs. 50 lakh for Portfolio Management Services, up from the previous requirement of Rs. 25 lakh before 2019.
High net worth individuals like-
Busy salaried professionals
High income business owners
Inheritors of family wealth
ESOP liquidation beneficiaries
|Charged by||Nature||When is it charged?||Range|
|Management fee||PMS service provider||Fixed||Every quarter||~2% of investment|
|Performance fee||PMS service provider||Variable||Every year||~20% of profits|
|Exit penalty||PMS service provider||Fixed||For early withdrawal from the PMS||~1-3% of early withdrawal amount|
|Transaction fee||Broker (demat account provider)||Fixed||Every transaction may have a brokerage + broker may have an annual maintenance charge||Varies a lot across brokers|
At Dezerv, we recognize that such hefty are responsible for underperformance of most PMS strategies. Hence, our fee structure is affordable and aligned with the interests of our investors.