How Do I Choose the Best Portfolio Management Service (PMS) in India in 2024?
Dive into a comprehensive guide on selecting the top Portfolio Management Services in India for 2024, focusing on new market trends, technological advancements, and evolving investor needs.
Introduction
As we step into 2024, the Indian investment landscape is undergoing a significant transformation, adapting to new market trends and evolving investor needs. This evolution calls for a deep dive into the realm of PMS, a critical ally for those navigating the turbulent waters of the investment sea.
However, the last two years have been very tough for both, as FD rates and debt fund returns were not able to even beat the inflation.
The Indian PMS Industry Booms:
The Portfolio Management Services (PMS) industry in India has witnessed explosive growth over the past five years, with AUM more than doubling from INR 13.34 lakh crore in November 2018 to a staggering INR 30.96 lakh crore in November 2023. This translates to a remarkable CAGR of over 23%, showcasing the immense potential and investor confidence in this personalized wealth management segment.
PMS allows for differentiated strategies across equity, debt, real estate, etc. Since it’s a concentrated portfolio of low volatility & high returns, the minimum investment as per SEBI regulations is INR 50 Lacs.
What is a good PMS Strategy?
iVentures CFA analysts says, focus on capital preservation while adding low-risk and high-return stocks. This involves identifying the high return stocks at their early stages of growth.
Why should you invest?
1️. You get a personalized portfolio manager.
2️. Concentrated, and focused strategy
3️. You own businesses, and not units
4️. Buy & hold strategy
What do you need to know to before investing into PMS?
In this video, we delve into the dynamics of choosing the best PMS. Join us as we uncover the key metrics that you should look at before investing into PMS.
What expenses does iVentures suggest you to look out for?
Management Fees: This is a fixed expense, charged by management of the fund.
Performance Fees: This is a profit share, i.e., a percentage of the returns the PMS generates for you. Here, look out for the hurdle rate.
Exit loads: A “load” is often charged at exit from an investor. Make sure you know what this is for you.
What are the Key Factors in Selecting a PMS?
Performance Track Record: Evaluating a PMS’s past performance gives insight into their expertise and consistency. It’s like checking the captain’s log before embarking on your voyage.
Risk Ratio Analysis: Look at the Sharpe ratio, Sortino ratio to get a measure of risk-adjusted returns. Higher the better
As we navigate the exciting, yet challenging waters of the 2024 investment landscape in India, choosing the right PMS is paramount. Remember, the right PMS is not just about managing your investments; it’s about realizing your financial dreams.
Connect with our in-house team of experienced CFA team to gain exclusive insights and receive personalized PMS recommendations tailored to your unique financial aspirations.
At iVentures, we delve deep into the nuances of investing, going beyond mere absolute returns. Our due diligence process is meticulously crafted, focusing on risk ratios and comprehensive market analysis to ensure your investments are not just profitable, but also prudent and aligned with your risk appetite.