PORTFOLIO MANAGEMENT
What Is Portfolio Management
Portfolio management is the professional management of an investor’s assets to achieve specific financial goals while considering their risk tolerance and investment horizon. It involves selecting a mix of asset classes—such as equities, debt, and alternative investments—based on the client’s objectives, market conditions, and risk profile. Portfolio managers continuously monitor and adjust the portfolio to optimize returns and manage risk through diversification, rebalancing, and strategic asset allocation. This service is suitable for high-net-worth individuals or investors seeking personalized, expert guidance to grow and preserve wealth efficiently while aligning investments with long-term financial plans.
Types Of Portfolio Management
1. Portfolio Management Services (PMS)
Portfolio Management Services (PMS) are investment solutions where professional managers create and manage customized equity portfolios tailored to an individual investor’s financial goals, risk appetite, and investment horizon. Unlike mutual funds, PMS offers personalized strategies, allowing clients to choose between discretionary, non-discretionary, or advisory management styles. Portfolio managers actively select stocks, monitor market trends, and make adjustments to optimize returns while managing risk. PMS is suitable for high-net-worth investors seeking targeted growth, diversification, and professional oversight. It provides transparency, regular reporting, and the flexibility to align investments with specific objectives, offering a more hands-on and strategic approach than traditional funds.
Who it is for
- HNIs
- Investors seeking personalized strategies
Benefits
- Tailored portfolios
- Active management
2. Alternate Investment Funds (AIFs)
Alternate Investment Funds (AIFs) are professionally managed investment vehicles that invest in assets beyond traditional equity and debt, such as private equity, real estate, hedge funds, commodities, or venture capital. They are regulated by the Securities and Exchange Board of India (SEBI) and cater primarily to high-net-worth individuals and institutional investors. AIFs aim to generate higher returns through diversified and often niche investment strategies, while also providing portfolio diversification and access to alternative asset classes. These funds carry higher risk and may have limited liquidity compared to conventional investments. AIFs are suitable for investors seeking growth, diversification, and exposure to non-traditional opportunities.
Who it is for
- Sophisticated investors
- High-risk tolerance
Benefits
- Portfolio diversification
- Access to alternative strategies
3. ETFs (Portfolio Category)
Exchange Traded Funds (ETFs) in the portfolio category are investment instruments used for strategic asset allocation and diversification across different asset classes such as equities, bonds, or commodities. They combine the benefits of mutual funds—like diversification and professional management—with the flexibility and liquidity of stocks, as they are traded on stock exchanges throughout the day. ETFs can track indices, sectors, or themes, enabling investors to build a balanced portfolio efficiently. They are cost-effective, transparent, and easy to trade, making them suitable for investors aiming to spread risk, optimize returns, and implement long-term investment strategies across multiple asset classes.
Who it is for
- Passive & strategic investors
Benefits
- Cost-effective
- Transparent
Investment value can fluctuate due to market changes, meaning returns are not guaranteed and may increase or decrease.