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PMSgivesinvestorsaccesstoaninstitutionalprocessofmoneymanagement.
Provides a customized solution bymatching the unique circumstances and
objectivesofeachinvestor.
WealthcreationbasedondisciplinedinvestmentprocessisthecruxofPMS.
Effectivediversificationhelpsreduceportfoliovolatilityandenhancesrisk
adjustedreturnsoverlongterm.
PMS gives investor direct ownership of the individual securities in the
portfolio
PMSv/sMutualFund:
BothPMSandMutualFundsaretypesofmanagedFunds.
The difference to the investor in a Portfolio Management Services over a
MutualFundis:ConcentratedPortfolio.
Portfoliocanbetailoredtosuittheneedsofinvestor.Investorsdirectlyown
thestocks,ratherthanthefundowningthestocks.
Differenceintaxation
2. Advisory services -An asset management company gives recommendations
and suggestions regarding investments; where to invest, when to invest, how
to invest, when to sell securities, and so on. Advisory investment managers
may either provide asset management services on behalf of corporate
investment firms, or directly manage a clients assets. Hiring good advisory
investment managers ensures the efficient management of investor finances
and high returns on investments. The advisory role of Amc is utilized mainly
against offshore funds, pension, funds, provident funds , venture capital
funds , management of insurance funds and above are the main funds under
which Amc performs its advisory role and provide information on the basis of
research conducted in market and past experience. An financial consultancy
and research conducted by asset management company can be exchanged on
commercial basis but such activity should not be in conflict with the activities
of mutual fund1. the asset management company can only perform such
activity after satisfying the board that the key personnel i.e manager or
portfolio manager , office , bank and securities account are different or
segregated and the Amc have established a system to prohibit or restrict the
access of price sensitive information or insider information of such activity in
performing such activity2 . the Amc can perform such function by itself or
with the help of subsidiary established under it3.
5. Compensation to affected investor- The AMC and the sponsor of the Mutual
Fund shall be liable to compensate the affected investors for any unfair
treatment to them as a result of inappropriate valuation
8. Treating the customers fairly -The AMCs must work solely keeping in mind
the investors interest. It is a huge responsibility on their shoulders as the
investors put tons of money in their hands expecting a good return on them. So
they are bound to follow the ethical principles and regulations of fair dealing.
tobelisted