Author : Aequitas

A successful investing portfolio requires knowledge, experience, and time to build and manage. Portfolio management services (PMS) are an enticing option to individuals looking for professional assistance in managing their finances. If you are looking for PMS firms in Mumbai , you must know that there are several portfolio management services accessible to meet the demands of investors in Mumbai, a growing financial city in India.

But it’s important to comprehend a few important aspects before giving a PMS provider your hard-earned money. In this blog post, we will go over crucial information to understand before choosing a PMS service in Mumbai, India.

7 Important Factors to Consider While Choosing a Portfolio Management Service in Mumbai, India –

1. Define your investment objectives:

It’s important to be clear about your investment goals before choosing a portfolio management service. Are you aiming for fast growth, steady income, or capital preservation? Understanding your objectives will help you find a portfolio management service provider who aligns with your investment philosophy and strategy.

2. Research and identify the right partner – portfolio management service, that fits your checklist of parameters:

Selecting the right boutique investment firm requires careful consideration. Here are some key factors to keep in mind:

  1. Reputation and Track Record: Research the firm’s reputation and past performance. Look for a proven track record of delivering consistent returns and high-quality service.
  2. Expertise and Specialization: Ensure the firm’s expertise aligns with your investment needs. For instance, if you are interested in a specific industry or asset class, the firm’s specialization in that area is crucial.
  3. Client Service: Evaluate the level of personalised service the firm offers. Direct access to senior partners and a commitment to client service are important indicators of a good boutique firm.
  4. Fee Structure: Understand the firm’s fee structure and ensure it is transparent and aligns with the value of services provided.
  5. Cultural Fit: The firm’s investment philosophy and culture should align with your own financial goals and values. A good cultural fit can lead to more harmonious and productive relationships.

3. Evaluating & understanding the Investment Philosophy and Approach:

Investment Philosophy and methodology: Each PMS vendor may have a unique investment philosophy and methodology. Some investors might concentrate on value investing, while others might choose a growth-oriented approach. It’s critical that you align the portfolio management service provider philosophy with your own. Analyse their approach and methodology in investing, the industries they focus on, and the way they handle risk. A PMS service provider is more likely to offer reliable outcomes if they have a well-defined investment procedure and a disciplined investment approach.

4. What is the minimum investment requirement to start with the Portfolio Management Service?

The minimum ticket size for investing in a Portfolio Management Service (PMS) is ₹50 lakh. This limit is set by the Securities and Exchange Board of India (SEBI) to ensure that PMS, which involves higher risks, is better suited for financially aware investors with larger portfolios. However, the portfolio management services minimum investment differs from firm to firm subject to the minimum limit as prescribed by SEBI.

Aequitas India sets itself apart by providing a dedicated and high-quality service for its clients, focused on a clientele comprising UHNIs, Family offices, promoters, institutions. Aequitas PMS minimum investment is INR 25 Cr, positioning it to cater to high-net-worth individuals who seek personalized and focused investment strategies.

5. Performance history

One of the key metrics of success in the PMS space is performance and PMS investment returns. Aequitas Investments prides itself on consistently delivering exceptional returns to its investors, showcasing a commendable CAGR of almost 34% since inception (since 2013), making it one of the leading PMS fundhouse in India. These impressive numbers reflect Aequitas’ commitment to its investment thesis and its ability to generate outsized returns and be one of the best PMS schemes in India.

The performance of Aequitas as a portfolio management company can be illustrated with a simple example: an initial investment of INR 1 crore in 2013 would have grown to over INR 26 crore by May 2024. This remarkable growth is a testament to the effectiveness of Aequitas’ investment strategies and its unwavering focus on maximizing returns. The firm’s success in organically growing its investor base, assets under management (AUM), and organization size further underscore its capabilities.

6. Risk Management and Compliance:

Evaluate the PMS provider’s risk management procedures. In order to safeguard your capital from potential downturns and market volatility, a strong risk management strategy is essential. Recognise the methods used by the PMS provider for risk assessment, diversification, and portfolio monitoring. Additionally important factors to take into account are adherence to ethical standards and regulatory norms.

Regulatory Compliance:

Verify the Securities and Exchange Board of India (SEBI) registration of the portfolio management service you choose. To safeguard the interests of investors, SEBI supervises PMS suppliers and establishes specific rules and specifications. Verify the PMS provider’s SEBI registration and look into any monetary penalties or complaints that may have been brought against them.

7. Research and Due Diligence:

A comprehensive investigation should be done on the numerous portfolio management service providers in Mumbai . Find pms firms that have a proven track record, knowledgeable fund managers, and a reliable investment procedure. Take into account their prior performance, risk management strategy, and clientele they serve. A trustworthy PMS service provider will have an open and well-supported investment strategy.

For investors who want to entrust experts with managing their finances, using a portfolio management service in Mumbai can be a good choice. Before making a decision, you must do extensive research, establish your financial goals, and evaluate a number of different aspects. You may make an informed selection and select a trustworthy PMS provider that is in line with your investment goals by taking into account factors like investment philosophy, regulatory compliance, fee structure, risk management procedures, and client service. To achieve your financial objectives, choosing the best portfolio management service in India is a critical step towards achieving your financial goals

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