Should you invest in a PMS?

Oct 11, 2023

In this podcast, the hosts explore the concept of Portfolio Management Services (PMS) and its benefits. They discuss the ideal time horizon for investments and how PMS offers an edge against Mutual Funds. Different archetypes of investors are introduced who stand to gain the most from embracing PMS offerings. The podcast also emphasizes the importance of having a framework when taking risks with extra money and compares investing in PMS to investing in Mutual Funds. Additionally, they discuss who should avoid investing in PMS and highlight a customer who achieved significant returns compared to the market.

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ADVICE

Discretionary PMS

Consider a discretionary PMS for long-term wealth management.
You give money to a manager who invests it without needing your approval for each trade.

ADVICE

PMS Suitability

Invest in a PMS if you lack the time, inclination, or skill to manage investments yourself.
A PMS requires a minimum investment of 50 lakhs and suits a long-term approach.

ADVICE

Defining Long-Term

Define "long-term" based on market cycles (3-5 years for equities) and personal goals.
Align your investment horizon with the time remaining to achieve your objectives.

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Welcome back to the Capitalmind Podcast – a place where we dissect the nuances of finance and investing, in a world that never stops changing. Your hosts, Deepak & Shray, are here to de-clutter yet another topic in their lucid and candid style.

In today's episode, we're zooming in on Portfolio Management Services (PMSes), a vehicle for your long-term wealth management. Here's a glimpse of what's on our financial canvas today:

PMS Demystified: We're going to peel back the layers on Portfolio Management Services – both the legalese and the real-world implications – to answer the quintessential question: "Does it make sense for you to invest?"
The Art of Timing: We'll delve into the art and science of choosing the right time horizon for your investments and why it's the secret sauce behind successful wealth building.
The 50 Lakh Question: At point of your investment journey should you consider investing in a PMS?
What's the PMS magic?: What can it do that traditional investment avenues can't? Specifically, does it offer any edge against Mutual Funds? (Spoiler alert: It does)
The Ideal PMS Investor: We'll introduce you to different archetypes of investors who stand to gain the most from embracing PMS offerings from our experience of managing 1200+ crores.

Time Stamps:

00:00 Introduction and Disclaimer

01:30 What is a Portfolio Management Service and what’s it good for or what’s the point?

05:05 Who should invest in a PMS? And what should be the tenure of your investment?

08:53 Where to invest for short term needs?

13:27 The issues with investing in a mutual fund.

27:53 What does a PMS offer? What are the benefits of a PMS?

36:23 Once you cross a 50 Lakh mark, should you move from MFs to PMS?

42:36 What can a PMS do differently?

46:51 What about the returns of PMS and is it worth it vs Nifty?

52:15 Who shouldn’t invest in a PMS?

58:27 Who should invest in a PMS?

If what you hear today intrigues you, head over to Capitalmind Wealth to explore how our PMS services might align seamlessly with your financial aspirations. Our fee structure, ranging from 0.25% to 1%, keeps it straightforward, with no hidden performance fees.

Schedule a call

Alternatively, shoot us an email at connect@capitalmindwealth.com, and we'll be more than happy to provide you with additional insights about our PMS offerings.