Why do we need portfolio management? The answer is as simple as it is profound – we all want to grow wealth, but not everyone has the expertise, time, or desire to manage their investments daily. This is where portfolio management services (PMS) shine, providing a hassle-free and personalised approach to wealth growth.
With PMS, you aren’t just another investor in a mutual fund with 70-80 stocks. You’re an individual with specific financial goals and risk tolerance. PMS understands this and crafts a tailored investment strategy to meet your unique needs. This is a breath of fresh air for serious investors who prefer a concentrated portfolio that potentially promises higher returns.
Warren Buffet once said, “Wide diversification is only required when investors do not understand what they are doing.” This rings true in the world of PMS. With a concentrated portfolio, volatility may be higher, but the potential for significant wealth creation is also amplified.
PMS also aligns the interests of the fund manager and investor better than other investment models. This is because of the performance-based fee structure typically used in PMS. A fund manager’s earnings are directly tied to the performance of the investor’s portfolio. Hence, their primary goal is to ensure your portfolio performs well, which is exactly what you, as an investor, want.
The managed service model of PMS eliminates the daily hassle of reconciling transactions through contract notes, a common issue in the advisory model. This allows you to focus on what truly matters – growing your wealth. With PMS, the complexities of managing a portfolio are taken care of by experts, providing you peace of mind.
As Benjamin Graham, the father of value investing, said, “The individual investor should act consistently as an investor and not as a speculator.” PMS enables you to do just that, providing a platform where your investments can flourish under expert care.
In essence, PMS provides an individualised, hassle-free investment experience that aligns your financial goals with the fund manager’s performance. It eliminates the need for daily reconciliation of transactions and offers a concentrated portfolio that potentially promises higher returns.
Therefore, Portfolio Management Services is not just about investing; it’s about investing smartly, strategically, and stress-free. It’s about letting the experts do what they do best, so you can enjoy the fruits of their expertise.
