My Eighth Blog: In 2000, ICICI Prudential was the first institutional participant to provide PMS services. Things to know about PMS:

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PMS (Portfolio Management Services) Investment is a customized investment solution offered by financial institutions or investment managers to high-net-worth individuals or institutions. The PMS investment is a type of discretionary portfolio management where the investment manager manages the portfolio on behalf of the investor based on their investment objectives and risk tolerance. The investment manager takes investment decisions on behalf of the investor and invests in different asset classes like equity, debt, and other securities. The investment portfolio is managed to deliver superior returns to the investor with minimum risk. PMS can be divided into two categories:


Discretionary PMS (Portfolio Management Service) is a type of investment service where investment decisions are made by the portfolio manager in consultation with the client. However, the client gives the portfolio manager the discretion to make investment decisions on their behalf without seeking their approval for every transaction. This allows the portfolio manager to react quickly to market movements and make investment decisions promptly. The portfolio manager has full authority to buy or sell securities, rebalance the portfolio, and make other investment-related decisions based on the client's investment objectives and risk tolerance.

Non-discretionary portfolio management services (ND-PMS) are investment advisory services in which the portfolio manager does not have discretionary authority over client accounts. Instead, the portfolio manager makes investment decisions based on the client's specific investment objectives, risk tolerance, and other guidelines.

Under ND-PMS, the portfolio manager provides investment advice and suggestions to the client, but the final decision to buy or sell securities rests with the client. In contrast, discretionary portfolio management services (D-PMS) give the portfolio manager full discretion to manage the client's account without needing client approval for every trade.

ND-PMS is preferred by clients who want to retain some control over investment decisions but still seek the expertise of a professional to manage their investment portfolio.

SEBI hiked PMS investment size from 25 lac to 50 lac on 20th Nov. 2019.👈


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