This article defines Portfolio Management Service (PMS), and talks about its advantages. It also presents a comparison between PMS and Mutual Funds (MFs).

The easiest way to get expert help is to use Mutual Funds (MFs). They aggregate money from many small investors, and collectively invest it on their behalf.

But this also means that they adopt a one-size-fits-all approach. Of course, there are many MF schemes to choose from, each having its own investment philosophy. But still, once you choose a scheme to invest in, you are part of a big crowd.

So, what if you have a large corpus to invest, and need specialized attention? Don't you think you deserve more attention when you are putting up a large sum of money to invest? Is there any option available to a "large" investor?

Yes, there is - and it is called Portfolio Management Service (PMS). If a mutual fund (MF) is a fast food outlet serving standardized offerings, a Portfolio Management Service (PMS) is a gourmet restaurant!

PMS is meant for relatively large investors - people having a portfolio substantially larger than the average investor. Securities and Exchange Board of India (SEBI) stipulates the minimum investment required for a Portfolio Management Service (PMS) to be Rs. 5 Lakhs.

And this is the minimum - most large brokerage firms offering PMS have a minimum investment limit ranging from Rs. 25 Lakhs to Rs. 1 Crore. Of course, there are some firms offering PMS for an investment of Rs. 5 Lakhs, but these are smaller firms, and remain on the sidelines. So, Portfolio Management Service (PMS) is meant for large investors!

(The PMS scenario is changing rapidly, and even large companies have started offering PMS with very low investment limits. For more on this, please read "Reliance Money to introduce PMS for the masses")

And what special treatment do you get as a large investor?

The biggest advantage is that the investments are tailored to your needs. The degree of tailoring varies among firms - it can range from some customization of a standard portfolio, to fully customized investments. It is worth noting that the degree of customization usually goes up with the minimum investment stipulated by the PMS provider!

The customers of a PMS also usually get a dedicated portfolio manager. This means that you always have someone when you need to talk about your portfolio. And unlike the helpline of a Mutual Fund (MF), you always talk to the same person when it comes to your investments. It's like having a family doctor for your investments!

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Other articles you might be interested in:

• Reliance Money to introduce PMS for the masses
• Goal Based Investing
• Direct investment in Stocks versus Mutual Funds (MFs)?
• Cap for PO Monthly Interest Scheme (MIS) increases
• National Savings Certificate (NSC)

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Note: Please treat the opinion expressed here as a broad suggestion. Please consult your financial planner / investment advisor before making any investment decision.