When to consider PMS in your investment journey? - Blog in English
PMS (Portfolio Management Services) - The Right Stage for Investment
Considering PMS (Portfolio Management Services) is essential when an individual progresses in their investment journey beyond traditional options and seeks more customized and professionally managed investments. The investment journey can be categorized into five stages:
1. Safety – Fundamental Financial Protection
Objective: Financial security and investment stability in times of emergency.
Examples:
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Fixed Deposit (FD), PPF, NSC
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Insurance:
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Life Insurance
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Health Insurance
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Accidental Insurance
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2. Need – Initial Investment for Capital Growth
Objective: Long-term capital appreciation with disciplined investment.
Examples:
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Mutual Fund - SIP (Systematic Investment Plan)
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ETF (Exchange Traded Fund)
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Gold/Silver
3. Wants – PMS and Stock Market Investment
Objective: Higher return opportunities with alternative investments.
Examples:
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PMS (Portfolio Management Services)
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Direct Equity Investment
📌 PMS falls under this stage, providing customized portfolio management for high-net-worth individuals.
4. Desires – Alternative Investment Options
Objective: High-risk, unlisted investment opportunities.
Examples:
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Alternative Investment Funds (AIF)
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Startup Investment
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Unlisted Securities
📌 These types of investments carry higher risks than PMS but can offer significant returns.
5. Luxury – Alternative and Passion Investments
Objective: Non-traditional and luxury asset investments.
Examples:
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Cryptocurrency
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Art Pieces
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Luxury Watches
Why Does PMS Fall Under the 'Wants' Stage?
📌 PMS is a professionally managed portfolio management service tailored for high-net-worth investors, offering more customization than mutual funds. 📌 It is a managed service where experienced professionals handle investments. 📌 PMS helps investors balance risk and returns effectively.
👉 PMS bridges the gap between traditional investments and high-risk alternatives, offering optimal risk-reward potential.
Disclaimer:
This information is for educational purposes only and should not be considered financial advice. Please consult a professional financial advisor before making any investment decisions.