PMS are services provided by banks, financial institution for individual investor wherein they will act as a guide for an investor at some pre-determined charges to provide active research and management of investment amount in various asset classes. They can provide customized solutions in investments specially created to meet needs that cannot be met from the standard financial instruments available in the market. PMS provides investment avenues in form of exposure to traditional and non - traditional investment across different asset classes. In equity PMS it can provide investment idea into listed / unlisted equities.
Returns can be equivalent or superior to direct equity investment depending on asset allocation to equity. There maybe lock-in period, PMS can be advise / research and recommendation based and flexible or rigid with authority lying with fund manager to take decision on clients behalf. Minimum investment criteria may be applicable. Fee can be performance based with some minimum asset management charges. This is suitable for investor with high risk appetite and high net worth individuals.
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