Portfolio Management Services (PMS) are investment tools that can be customized specifically for high net-worth individuals (HNIs). With a minimum ticket size of Rs 50 lakh, these investments are favored by high-end investors having huge investment capital and looking for professional wealth management solutions.

PMS has highly-experienced, professional wealth managers with years of industry expertise having varied roles as fund managers for the service provider’s several clients. These providers offering PMS solutions are registered with the Indian market capital regulator, SEBI (Securities and Exchange Board of India).

Even if the minimum investment criteria are fulfilled, it is not always necessary that each of us have the expertise and knowledge to manage our investments by ourselves. This is where the crucial role of fund managers comes into the picture. These professional wealth managers plan out investment strategies keeping the client’s financial goals in mind and taking due note of their risk-appetite and preferences for diversification and active portfolio management.

The SEBI (Portfolio Managers) Regulations, 2020 state that the PMS provider can charge the investor fees under different categories as per the agreement. This agreement will have all the conditions laid out between both parties with respect to the type of PMS selected, the lock-in period, investment plans, the role of the wealth manager, and the fee involved. An investor is liable to pay several fees like fund management fee, performance fee, entry/exit load, brokerage fee, and others.

The primary difference between a Discretionary and a Non-Discretionary PMS is that in the former case, the wealth manager holds the complete discretion on the client’s investments and need not seek approval before undertaking any action; whereas in the latter case, the complete decision-making authority to make investments rests with the investor and the manager here plays an advisory role planning out and suggesting investment strategies (and executes trades only on approval of the client).

In a Discretionary PMS, the investor’s funds are invested in financial securities, money market instruments, equities listed or traded on a recognized stock exchange, mutual funds units through a direct plan and cannot invest in unlisted securities. The new rules of the PMS restrict the Non-Discretionary fund managers to invest not more than 25% of the client’s AUM in unlisted securities, along with the permitted ones under the agreement.

In portfolio management services, the professional wealth manager handles the client’s entire portfolio, unlike in mutual funds where the investors invest in a pool of funds with no customized solutions offered. PMS returns are greater than those from mutual funds with customized offerings and personalized active portfolio management.

Considering the investor’s short-term and long-term wealth creation goals, continuous and hassle-free portfolio management to invest in the ever-changing stock markets, having a professional approach becomes more crucial than ever. These professionals will be responsible for the portfolio management along with performance reporting, laying out investment strategies and other activities based on the client’s selected PMS type and their agreement laid out with the provider.

The report includes details such as portfolio value, securities involved, investment period, transaction rates, beneficial interest received in the form of bonus shares, dividend, etc., commissions paid, fee structure along with the detail of expenses involved in the period, and risk management by the manager for investment and disinvestment.

According to SEBI regulations, the PMS cannot promise or offer indicative or guaranteed returns to any investor/client.

For any investor looking for investing in a portfolio management service, what they need to follow first is detailed research on the provider — the fund managers involved, their experience, past performances, and track history. Dig into previous reports published and gathered through sources, get in touch with friends and peers, and note first-hand reviews of the provider’s returns and performance.

About Bonanza PMS?

The Bonanza Group’s industry-relevant experience of more than 25+ years, robust, competent leadership, and management team make us one of the largest financial services and broking houses in India.

Advantages of investing in Bonanza PMS

  • Long-term Growth

Proven PMS strategy for long-term growth, integrated with portfolio diversification and continuous monitoring. Maximization of returns on investment, through solid fund management and investment advisory services.

  • Expertise in Analysis

Reliable risk management support and high-precision asset management solutions aimed at value addition. With an endeavor to give you the best, Bonanza provides a highly professional market analysis that enables us to address varying investment preferences and deliver maximum returns to our clients.

  • Experienced Fund Managers

With our capable and trustworthy Portfolio Management Services managers, you can experience proficiency, talent, and expertise, all of which allow us to bring out the best in your portfolio of investments.

  • End-to-end Support

With a complete array of services across all verticals in finance, Bonanza offers you the perfect blend of financial assistance to help set your goals and confidently achieve them. Functioning on an integrated and innovative platform to trade online and offline, we give our clients the undisputed edge in achieving results.

  • Past Performance

Having consistently outperformed the benchmark composite indices and other major indices, their CAGR is as follows: (the data needs to be modified based on the latest available records)

  1. A CAGR of 6.8% is promised for 5-year investments.
  2. 2.9% CAGR for 7-year investments
  3. 8.7% CAGR for 10-year investments
  4. And, investments over 11 years get a 9.2% CAGR.
  • Risk Management

Liquidity — Top 10 Stocks <45% of Net Assets

Drawdown — Diversified Portfolio of Stocks

Governance — Gradual scaling-up of position reduces risks

Bonanza Group’s dedicated research team with years of experience and extensive market knowledge offers a bouquet of customized financial products. These include prime brokerage, Portfolio management, and distribution services that comprise Bonds, Real Estate, Mutual Fund Investments, Insurance, and depository services covering all financial domains