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PMS vs Mutual Fund

PMS offers the utmost flexibility and customisation of investment strategies to generate optimal returns. Here, expert portfolio managers lead the investment process depending on the type of service an investor chooses.

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PMS vs Mutual Fund

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  1. PMS vs Mutual Fund Simple | Fast | Reliable

  2. Portfolio Management Services PMS offers the utmost flexibility and customisation of investment strategies to generate optimal returns. Here, expert portfolio managers lead the investment process depending on the type of service an investor chooses. PMS Investment Discretionary PMS Non-discretionary PMS Advisory PMS Under these services, a manager controls the ultimate investment decisions, timings, and executes the trading. The investor has no significant role as he/she has given complete authority to the portfolio manager. Under these services, a portfolio manager can only advise an investor. However, the investor makes the choices, decides the timing, and also executes the trading. Here, a portfolio manager advises the investor, but the investor has the final say regarding the decisions. However, the manager does the trading, not the investor.

  3. PMS Investment:Benefits They can get a portfolio customised as per their risk appetite. Investors can frame a portfolio with the benefit of discretion. PMS investment offers utmost transparency in portfolio management, performance, and reporting. It offers substantial diversification across securities like shares/stocks, fixed-income instruments, cash and cash equivalents, derivatives, etc.

  4. Mutual Funds Mutual funds are an investment vehicle that pools funds from varied investors and invests that compiled capital in securities like equity, debt, gold, etc. Like PMS, mutual funds are professionally managed by experts, known as Fund Managers. Mutual Funds Hybrid Funds Equity Funds Debt Funds This type of MFs invests in two or more types of securities, including equity, debt, and money market instruments, gold and overseas securities. Invests a minimum of 65% of its assets in equity and equity-related instruments. The remaining 0% – 35% can be invested in debt or money market securities. These mutual funds invest most of their assets (65%) in debt and marketable securities.

  5. Mutual Fund Investment:Benefits Mutual Fund investment guarantees professional management of funds. ELSS comes with tax benefits. It helps achieve a diversified portfolio but is not customised per an investor’s objectives or aptitude. Systematic Investment Plan (SIP) enables investors to invest a fixed amount in an MF scheme at preset intervals (daily, weekly, monthly, bi-annually, and annually.)

  6. Bottom Line Expert money managers guide both PMS investment and mutual funds. However, PMS investment is more customised with investment strategies informed by an investor’s risk appetite and financial objectives. Mutual funds are more regulated and can be invested with a minimum entry amount. Investors must consider factors like market conditions, purpose, risk appetite, tax benefits, etc., before investing in PMS or mutual funds.

  7. Thank You Info@kredx.com www.kredx.com +91 8892043534 Delhi Bangalore Mumbai Simple | Fast | Reliable Apeejay Business Centre,6th Floor, Arunachal Building, 19 Barakhamba Road, Connaught Place, New Delhi - 110001 Ground Floor, Tower A, Salarpuria Softzone, Wing 'a, Outer Ring Rd, Bellandur, Bangalore - 560103 Wework, 14th Floor, 247 Park, Vikhroli West, Mumbai, Maharashtra - 400079

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