What are the advantages and disadvantages of PMS(Portfolio Management Service)?
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Advantages of PMS:
The biggest advantage of PMS is that you get professionally managed portfolios by experts customized as per your needs and goals.
One gets to invest across classes of assets such as equity, debt, gold, mutual funds, etc.
Generally, PMS promise to outperform the benchmark in the long run, this means higher returns than the set benchmark.
A diversified and well-focused portfolio considering investor profile in mind.
There’s no limit to the extent one could invest in a particular stock.
Disadvantages of PMS:
As per the SEBI guideline, the minimum investment requirement is Rs. 50 lakhs, because of this, these services won’t be enjoyed by small investors.
High set up cost is paid by the investor which ranges between 1-3%.
PMS providers share profits but not losses.
In the long-documentation procedure, many accounts are needed to be opened.
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