PMS
November 8, 2022 2023-01-13 7:10PMS
Portfolio Management Services
Discretionary PMS
In a discretionary PMS format, the portfolio manager is fully empowered and responsible for stock selection and execution of all investment decisions. This is done via a PoA (power of attorney) that the client signs in favour of the portfolio manager.
Over time, Discretionary PMS has emerged as the most common and popular PMS format chosen by Indian PMS clients. If you want to start a PMS relationship with Buoyant Capital, we’d recommend this format over all other formats owing to its simplicity and the clear accountability that it puts on us as your portfolio managers.
Non-discretionary PMS
Non-discretionary PMS is a consultative investment approach wherein the portfolio manager suggests investment ideas to the client. The choice and timing for investment rests with the investor, who then confirms or denies the advice with the portfolio manager.
The execution of the investment decision (once finalised and conveyed by the client) is done by the portfolio manager.
If you want to be in charge of your buy/sell decisions, but you are otherwise OK to leave the trade execution and fund accounting to us, then this is the PMS format for you.
Advisory PMS
Under the Advisory PMS format, the portfolio manager merely suggests the investment ideas to the client via a formal communication such as an e-mail or a WhatsApp message.
The choice as well as the execution of the investment decisions lie solely with the client .
The Advisory PMS format is far less popular in India vs. the more conventional Discretionary PMS format. If you think you need our advice, but want to execute and track your portfolio at your own discretion and timing , then Advisory is the PMS format for you.
