Individuals turn to the stock market with the hope of making a fortune. However, at most times, exposing investment portfolios to market risks becomes overwhelming, even for the affluent. As a result, many investors tend to add more investment instruments beyond stocks to diversify their portfolios. This, in turn, helps to generate inflation-adjusted returns and cushion risk.
Regardless, knowledge and market information are crucial requisites to become a successful investor. Most importantly, investors need a robust strategy and an understanding of the economic cycles to plan their investment activities better. But unfortunately, this is where most investors falter.
However, with the help of portfolio management services, investors can make the entire process much hassle-free. Generally, PMS services are provided by experienced managers who are adept at managing equity portfolios for different clients. Moreover, portfolio managers possess thorough market knowledge that helps accelerate gains for investors.
Accordingly, more individuals are now keen on investing through PMS services, especially during the pandemic. On that note, let us know what is driving investors towards them below:
5 Top Reasons To Invest In PMS Services
Portfolio management services are ideal for:
- Investors intending to invest in different areas such as stocks, funds, bonds, commodities, etc.
- Investors who hold minimum knowledge about the market.
- Investors unknown to the impact of market forces on investment.
- Those investors who lack time to trace their investments or balance their portfolio.
Furthermore, here’s why you should invest in PMS services amidst the pandemic:
People managing their portfolios tend to focus less on quality and more on the price. Also, the number of listed companies is huge. However, individual investor portfolios contain fewer quality stocks and seldom have shares that belong to major indices like Nifty 500, Nifty, and BSE 200.
Interestingly, most of the market value lies in the top 500 companies. Furthermore, holdings of retail investors have a long tail, missing any value. These investors consistently seem to be confused between price and value. They chase the stocks that are high on price but deliver low or zero value.
Portfolio management service suggests these investors the right stocks and helps derive value out of their investments.
It is universally known that the investment market entails risks. Moreover, there are also constant fluctuations in the market. Hence, keeping track of these aspects can help one make an informed decision.
Fortunately, portfolio management services not only conduct timely market research to provide recommendations. It also delivers a strong risk management plan. Here, managers are keen on assessing the market, tracking diversification, inflation risks, and interest rates.
With the help of an investment platform like KredX, individuals can connect with the most suited PMS provider and plan their high volume investments with effect.
Unlike mutual funds, PMS is not exposed to the behaviour of thousands of investors. As a result, PMS holdings are independent and cannot be impacted by the behaviour of other investors.
Typically, investors are inclined towards rising markets. However, during panic-stricken times a sudden sharp fall in the market could erode investor’s wealth and savings drastically. Sometimes, mutual funds may also be bought during a rising market and sold off when they are falling. This is because managers do know stock picks but not on stock flows.
In the case of PMS services, investors influence their buying and selling price and do not affect other investors.
PMS entails constant customisation of the portfolio depending upon the changing situations. Hence, it can generate excellent returns, unlike other investment options like mutual funds. Here, researchers are in constant view of the financial market. They work along with the portfolio manager to track the portfolio.
This results in informed decisions and guaranteed high returns even in an odd market situation.
100% Transparent Holdings And Expense Ratio
Investors get every minute update in PMS. In addition, the investor receives information on every other trade. Additionally, a live portfolio view is also initiated on the manager’s website. Mutual funds, on the other hand, have 100s of stocks. So, their holdings are available to the investors only once a month.
In addition, PMS services also provide transparent and customised expense ratios. Each client receives a certain fee structure. They also get a monthly review of charges levied upon their portfolio.
Is PMS an ideal investment during the pandemic? Yes, currently, this is the best investment option for high profile investors. Various reasons make it popular. However, the biggest reason is its capacity to churn out most of the investments.
Here, experienced managers handle the portfolio of investors. They have adequate knowledge to help an individual in meeting their goals.
Hence, investors lacking the experience, knowledge, and time for investing can choose PMS services. They can also perform autonomous transactions as per their requirement and invest without any hindrances.