Description
Security analysis is the analysis of tradeable financial instruments called securities. These can be classified into debt securities, equities, or some hybrid of the two.
What is Portfolio management Service….
The process of managing the assets, including choosing and monitoring appropriate investment and allocating funds accordingly. The Act or practice of making investment decisions in order to make the largest possible return. Portfolio management takes two basic forms: Active and Passive .Active Management involves using technical , fundamental or some other analysis to make trades on fairly regular basis. For example , one may sell stock Infy in order to buy stock RIL .Then , a few days or weeks later ,one may sell stock RIL to buy GSEC. Passive management ,on the other hand , involves buying an index, an exchange traded funds or some other investment vehicle with securities the investor does not directly choose .For example , one may buy an exchange traded fund that holds all the stocks on the SENSEX
Prof.Mahesh -Suryadatta Group of Institues
Why do you need portfolio management service? When you have numerous investments in your portfolio, you may find it difficult to keep track of each and every investment and its current market state. Employing a portfolio management service will simplify the task of management of your portfolio. These services are offered by your banks, broking houses and other financial professionals. Simply put, the function of this service is to keep track of your portfolio and analyze it and assess it on a regular basis
Prof.Mahesh -Suryadatta Group of Institues
How is it any different than mutual funds?
A mutual fund is a collective pool where money is obtained from a large number of persons and invested by professionals. The fundamental difference between mutual fund and portfolio management service is that the latter involves management and implementation of your decisions. Unless you specifically ask for the same, the PMS is not going to take investment decisions for you. On the other hand, you cannot instruct your mutual fund house manager to invest your money in specific sectors only. This decision should be taken when you are choosing the mutual fund scheme. However, once the choices been taken, you lose all freedom of indicating your personal choice. Another significant difference between portfolio management service and mutual funds is that the former can offer customized and individually tailored solutions. On the other hand, mutual funds offer group solutions for a large number of persons seeking a specific investment option.
Prof.Mahesh -Suryadatta Group of Institues
Another significant difference between the two solutions or services is the extent of regulation. Mutual funds have been very popular for the past five decades or more. Hence, there is well established set of regulations for mutual funds in the country. On the other hand, the idea of appointing a professional to manage one’s investment is a recent entrant.
The charges of different mutual fund companies and schemes have been laid out in clear detail. On the other hand, PM Services offered by banks and other financial institutions have their own separate and independent set of charges. Under certain conditions and circumstances, the portfolio management service may function just like a mutual fund. If your portfolio is not very high, your bank may combine it with portfolio of other customers in the same condition and take joint investment decisions. When this happens, the service provider will function just like a mutual fund manager. However, if you have a diverse portfolio and if you are a high net worth individual, you can insist on customized services from your bank or financial institution. This option is not available when you invest in mutual funds.
Prof.Mahesh -Suryadatta Group of Institues
Which is the better among them?
I for one will always prefer Mutual funds since it is more established, more transparent and regulated. But, if you get an expert PMS who can provide much better service at all levels (cost, returns, risk, response etc), then go for that PMS and yes, do let me have his / her contact details too
Prof.Mahesh -Suryadatta Group of Institues
doc_630649922.pptx
Security analysis is the analysis of tradeable financial instruments called securities. These can be classified into debt securities, equities, or some hybrid of the two.
What is Portfolio management Service….
The process of managing the assets, including choosing and monitoring appropriate investment and allocating funds accordingly. The Act or practice of making investment decisions in order to make the largest possible return. Portfolio management takes two basic forms: Active and Passive .Active Management involves using technical , fundamental or some other analysis to make trades on fairly regular basis. For example , one may sell stock Infy in order to buy stock RIL .Then , a few days or weeks later ,one may sell stock RIL to buy GSEC. Passive management ,on the other hand , involves buying an index, an exchange traded funds or some other investment vehicle with securities the investor does not directly choose .For example , one may buy an exchange traded fund that holds all the stocks on the SENSEX
Prof.Mahesh -Suryadatta Group of Institues
Why do you need portfolio management service? When you have numerous investments in your portfolio, you may find it difficult to keep track of each and every investment and its current market state. Employing a portfolio management service will simplify the task of management of your portfolio. These services are offered by your banks, broking houses and other financial professionals. Simply put, the function of this service is to keep track of your portfolio and analyze it and assess it on a regular basis
Prof.Mahesh -Suryadatta Group of Institues
How is it any different than mutual funds?
A mutual fund is a collective pool where money is obtained from a large number of persons and invested by professionals. The fundamental difference between mutual fund and portfolio management service is that the latter involves management and implementation of your decisions. Unless you specifically ask for the same, the PMS is not going to take investment decisions for you. On the other hand, you cannot instruct your mutual fund house manager to invest your money in specific sectors only. This decision should be taken when you are choosing the mutual fund scheme. However, once the choices been taken, you lose all freedom of indicating your personal choice. Another significant difference between portfolio management service and mutual funds is that the former can offer customized and individually tailored solutions. On the other hand, mutual funds offer group solutions for a large number of persons seeking a specific investment option.
Prof.Mahesh -Suryadatta Group of Institues
Another significant difference between the two solutions or services is the extent of regulation. Mutual funds have been very popular for the past five decades or more. Hence, there is well established set of regulations for mutual funds in the country. On the other hand, the idea of appointing a professional to manage one’s investment is a recent entrant.
The charges of different mutual fund companies and schemes have been laid out in clear detail. On the other hand, PM Services offered by banks and other financial institutions have their own separate and independent set of charges. Under certain conditions and circumstances, the portfolio management service may function just like a mutual fund. If your portfolio is not very high, your bank may combine it with portfolio of other customers in the same condition and take joint investment decisions. When this happens, the service provider will function just like a mutual fund manager. However, if you have a diverse portfolio and if you are a high net worth individual, you can insist on customized services from your bank or financial institution. This option is not available when you invest in mutual funds.
Prof.Mahesh -Suryadatta Group of Institues
Which is the better among them?
I for one will always prefer Mutual funds since it is more established, more transparent and regulated. But, if you get an expert PMS who can provide much better service at all levels (cost, returns, risk, response etc), then go for that PMS and yes, do let me have his / her contact details too
Prof.Mahesh -Suryadatta Group of Institues
doc_630649922.pptx