3 Types of Equity PMSs

Being a good investor is all about education. There are so many facets to investing, that it might get a little confusing. Equity PMS is one of them. In fact, you can spend years and years researching investing topics, and there will still be things to learn or stones left to turn.

What is Portfolio Management Service?
It is a customized solution to investments in equity and debt offered by experienced and professional Fund Managers. PMS is a type of wealth management service that offers a range of specialized investment strategies to benefit from the opportunities in the market and is managed by professional portfolio managers.

The benefit of this service is that you may choose to give discretionary powers to Portfolio Managers, for staggered deployment of money to average out entry levels and portfolio actions into research backed stock ideas into large/mid/small cap to enhance return potential.

It is an investment portfolio in stocks, fixed income, debt, cash, structured products and other individual securities. When you invest in equity PMS, you own individual securities unlike a mutual fund investor, who owns units of the fund.

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Equity PMS has the following types of orientation:

A. Large Cap Oriented
This type of equity investment has a moderate risk and moderate return potential.
Time horizon: 3-5 years
Average Historical Return: 12-15%
Average Historical volatility: Moderate

Top 3 Names in this orientation are:

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Whom this is not meant for? 
Investors seeking the highest possible returns and not worried about short to medium term underperformance as looking to invest for 7-10 years or more time horizon. 

B. Multi-Cap Oriented
This type of equity investment has a high risk and high return potential.
Time horizon: 5-7 years
Average Historical Return: 15-18%
Average Historical volatility: High

Top 3 Names in this orientation are:

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Whom this is not meant for?
Investors seeking fewer volatiles returns and looking to invest for less than 5-7 years of time horizon.

C. Mid & Small Cap Oriented
This type of equity investment has very high risk and very high return potential.
Time horizon: 7-10 years
Average Historical Return: more than 18%
Average Historical volatility: Very High

Top 3 Names in this orientation are:

Whom this is not meant for? 
Investors seeking less volatiles returns and looking to invest for more than 5-7 years of time horizon.

At pms-aif.com, we focus on unparalleled research, unbiased advice, and suitability analysis. We represent a Wealth Management Firm pursuing the goal of taking Right investment products to Right investors. 

Disclaimer
Investments are subject to market risk. This write up is issued by pms-aif.com and is produced for information purposes only. Information and opinion contained in this document are published only for the assistance of the recipient. It is neither a solicitation to sell nor shall it form the basis. Or be relied upon in connection with any contract or commitment whatsoever or be taken as investment advice.