Selecting the best performing PMS schemes in India can be a daunting task given the multitude of options available. However, there are several critical factors to consider that can guide you in making an informed decision.
1. Track Record:
- It’s essential to review the past performance of the PMS scheme over various market cycles. A consistent history of strong returns, especially during market downturns, can be a good indicator of the scheme’s resilience and effective
management. While past performance is not a guarantee of future results, it provides insights into the scheme’s ability to navigate different market conditions.
2. Expertise of the Manager:
- The portfolio manager and their team play a pivotal role in the scheme’s Look into their professional background, years of experience, and any notable achievements in the finance sector. Their investment philosophy should resonate with your financial goals and risk appetite. A team with a proven track record and a clear investment strategy can be more reliable.
3. Fee Structure:
- While it’s natural to seek expert management for your investments, it’s equally important to understand the costs involved. High management fees can significantly erode the net returns on your investment. Compare the fee structure of different PMS providers and ensure that the charges align with the services offered. Remember, the cheapest option isn’t always the best, but neither is the most expensive if the returns don’t justify the
4. Asset Allocation Strategy:
- Diversification is a fundamental principle of A well-diversified portfolio spreads investments across various asset classes, such as equities, bonds, and commodities, reducing the impact of a poor-performing asset on the overall portfolio. Ensure that the PMS scheme’s asset allocation strategy aligns with your investment horizon and risk tolerance. A scheme that is overly concentrated in one asset class might expose you to unnecessary risks.
5. Transparency and Customer Service:
- Effective communication is the cornerstone of a successful investor-manager The PMS provider should offer regular updates on portfolio performance, changes in asset allocation, and any significant market developments. Additionally, assess the ease of reaching out to the provider for queries or concerns. A provider that values transparency and customer service will prioritize keeping you informed and addressing any issues promptly.
Aequitas PMS has generated a CAGR 38% over 10 years as of Aug 2023 and has many investors who have stayed invested since the beginning and yielded maximum benefits. The rich experience of fund managers and the stringent investment philosophy has helped Aequitas Portfolio Management Service beat the market indices handsomely. Aequitas encourages long-term investment strategy and cherishes 1-1 relationships with clients with utmost fairness and transparency.