PMS is a tailor-made professional service offered to cater the investment objective of different investor classes. The clients can be Individuals or Institutional entities with high net worth. In simple words, a PMS provides professional management of investments to create wealth. PMS offers various customized portfolios depending on investors risk appetite and returns expectation. In such discretionary portfolios, fund manager takes investment decision on behalf of the investor.
PMS provides professional management of portfolios with the objective of delivering consistent long-term performance while controlling risk.
Well defined investment philosophy & strategy acts as a guiding principle in defining the investment universe. Further, professional management ensures disciplined portfolio construction, monitoring and the risk management processes.
Most of the PMS houses provide account statements and performance reports on a monthly basis along with web access to track all information relating to investments made ensuring enhanced transparency.
In PMS, investor gain direct personalized access to the professional money managers who actively manage their portfolios. This interaction may come in various different ways including in-person meetings, conference calls, written commentary, etc with the fund management team.
In AIF schemes, pooled Investments made in venture capital, private equity, hedge funds, long short strategies etc. are called alternative investments. In other words, an investment not made in conventional investment avenues such as stocks, bonds, real estate etc. may be considered as alternative investments.
Alternative Investment Funds (AIFs) are defined in Regulation 2(1) (b) of SEBI (Alternative Investment Funds) Regulations, 2012. It refers to any privately pooled investment fund, in the form of a trust or a company or a body corporate or a Limited Liability Partnership (LLP).
As per SEBI, AIFs are classified in three broad categories. Category I & II AIF are close ended & the tenure of the scheme is minimum three years. Whereas Category III AIF can be open ended or close ended.
