Portfolio Management Services (or PMS) are investment solutions highly preferred by high net-worth individuals (HNIs) and institutional investors. These are highly personalized investment tools that offer customized portfolio management services in which professional fund managers handle the client’s portfolio. These wealth managers plan out investment strategies keeping the investor’s financial goals and risk appetite in mind.

According to the latest SEBI regulations, the minimum ticket size for investing in a PMS solution is Rs50 lakh. Anyone who’s investing in a PMS needs to understand why they need a PMS, the benefits, and how it fits their financial goals.

If you’re a beginner, you’ll need to look for several criteria before choosing the right PMS provider for your portfolio. These include the performance history, track record, manager’s performance, fee structure of the PMS, agreement on the type of PMS availed, and several other features.

PMS is broadly categorized into the following three types:

Discretionary PMS— In this PMS type, the professional portfolio manager holds the discretion to the client’s portfolio. The investment strategies, planning, and execution rest with the fund manager, and as per their agreement terms, he can make the client’s investment decisions without his/her approval.

Non-Discretionary PMS — In this type, the investment decisions rest with the client, and the fund manager can suggest investment strategies, but the client can pick stocks and other investment products at their discretion. While the fund manager can execute trades for the client, the execution can only be done on the approval of the client.

Advisory PMS — In this type, the fund manager acts solely as an advisor, and the entire decision-making from stock selection to trade execution rests with the investor.

Another common question that most of us have come across as beginners is selecting the right investment tool. Whether it is between mutual funds, PMS, or an AIF, the choice always narrows down to what risks the investor is willing to take and whether the investment plan matches the financial aims.

PMS solutions are different from Mutual funds and AIFs. PMS provides personalized investment solutions, professional fund managers that take care of the client’s portfolio and plan investment and wealth creation strategies. Whereas in mutual funds and AIFs, you invest in a common pool of wealth that has contributions from other investors as well, and the manager distributes the wealth from the investment’s return among them.

The portfolio management service provides customised solutions to clients tailored to their risk profile and financial goals. The agreement between you and your PMS provider will lay out the service’s exact terms, including the type of PMS selected, roles of both parties, fee structure involved, lock-in period, exit load, etc. The investor is liable to pay several fees like fund management fee, performance fee, entry/exit load, brokerage fee and others.

  • Investment Philosophy
  • Prudent Risk Management
  • Long-term Wealth Creation
  • Works in All Market Conditions
  • Consistent Track Record

The wealth manager in a portfolio management service has a crucial role to play. Not every investor has the complete know-how on the equity market investments and with the huge capital involved, it becomes even more necessary to have a professional who not only manages the current portfolio but devises strategies for wealth creation. Fund managers are highly adept, experienced individuals appointed by the PMS providers who ensure that the investor’s wealth creation journey is driven to their financial goals.

Professional wealth managers have a unique way of work where they select the best stocks, bonds and other financial instruments, strategise investments, mapping the client’s wealth creation plan surrounding their preferences and risk appetite.

Going with the common saying, it is not the market but the manager’s discretion that drives an investor’s portfolio performance. The fund manager’s power to judge and act with asset elements is again dependent on their skill, years of experience, past performance and history and their ability to lead the fund into beating the index.

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

Bonanza had its initiation in 1994, and since then its robust performance delivery makes this group one of India’s largest financial services and broking houses. Bonanza group consists of its six mega group companies that make up the pillars of its strength. The company’s outstanding performances, decades of industry-relevant experience, competent leadership, and tireless efforts have helped outperform its peers.

With our dedicated research team with years of experience and extensive market knowledge, we offer 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.

Why Bonanza PMS?

Whether it is wealth management, asset management, or personalised investment portfolio products, all investments are subject to market risk. This risk demands proper research from the investor’s end before he/she picks their favorable investment solution. At Bonanza, we ride on this risk by analyzing market trends and striving to deliver the best returns on our clients’ investments through our industry-leading portfolio management services (PMS).

Having consistently outperformed the benchmark composite indices and other major indices, their CAGR is as follows: (the data below needs to be verified and updated to represent the latest returns)

  • A CAGR of 6.8% is promised for 5-year investments.
  • 2.9% CAGR for 7-year investments
  • 8.7% CAGR for 10-year investments
  • 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

Key Features

  • Value and Growth-Oriented Approach
  • Combined Fundamental & Technical Approach
  • Ideal for Moderate to High-risk investors
  • Actively Managed Multi-cap Portfolio
  • Monitors Macro-Economic Environment
  • Capital Conservation & Wealth Building