PIYUSH BANSAL, A Delhi-based IT professional working for a multinational firm, has been investing in mutual funds (MFS) since his first job. As his portfolio has grown substantially over the years, Bansal, now 35, is contemplating a shift towards portfolio management services (PMS) to further customise his portfolio for greater returns. I've been investing in MFs since a young age. Now that my assets have grown and my income has increased, I am exploring alternative options to boost the return from my portfolio. However, I am unsure if PMS is the right choice for me, Bansal remarks.
Like Bansal, many are keen to put their money in PMS schemes in the hope of generating higher returns on their investments; but why PMS? This is because PMS has the edge in creating higher alpha over MFs in the long term due to its customised and concentrated structure. However, PMS carries a higher risk as well. So, it is crucial for investors to choose the right PMS.
A study by PMS Bazaar of 335 PMS investment strategies and 388 MFs (regular) across one-, three-, five-, and 10-year periods reveals that PMS strategies outperformed their benchmarks by 70% on average, while MFs managed a respectable 48%. But before you hop on the PMS bandwagon, it is important to grasp the distinction between the two, though comparing them directly may not be entirely fair, as they cater to different financial needs and risk appetites.
PMS VS MF
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
"Focus on the challenge of each customer"
SHASHANK KUMAR MD & CO-FOUNDER I RAZORPAY Razorpay is India's first full-stack financial solutions company
PEDAL ON THE FUTURE
THE MG WINDSOR EV, WITH ITS FUTURISTIC AND MINIMALIST DESIGN, COMBINES THE BEST OF BOTH WORLDS-COMFORT AND TECHNOLOGY
BREATHE EASY
Whether you're battling allergies, looking to remove pollutants, or simply want to breathe easier, the right air purifier can make a difference
The Taste of India in a Glass
FROM ROYAL LIQUEURS TO DISTILLED MAHUA, INDIAN HERITAGE ALCOHOLIC BEVERAGES ARE HAVING THEIR DAY IN THE SUN
LOOK BEFORE YOU LEAP
IN 2025, INVESTORS WILL NEED TO FACTOR IN VOLATILITY ACROSS ASSET CLASSES
MISSING ADVISORS
INDIA HAS JUST ONE INVESTMENT ADVISOR FOR NEARLY EVERY 200,000 INVESTORS. AT A TIME WHEN RETAIL PARTICIPATION IN THE STOCK MARKETS IS BOOMING, THIS ASSUMES SIGNIFICANCE
TURNING A CORNER
SHARED ELECTRIC MOBILITY START-UP YULU'S SHIFT TO SERVICING THE QUICK COMMERCE SECTOR IS HELPING IT GROW FAST. IT IS NOW FOCUSSING ON IMPROVING ROAD SAFETY FEATURES AS IT TURNS EBITDA POSITIVE
REALITY CHECK
INDIAN STOCK MARKETS PLUNGED BEGINNING OCTOBER FOR A HOST OF REASONS, INCLUDING A FALL IN FII OWNERSHIP. HOW DEEP WILL THE CORRECTION BE?
TRUMP'S TRADE TANGO
The return of Donald Trump as the 47th President of the US has put the global economy on edge. India, too, is unlikely to remain unaffected. How will policymakers meet this latest challenge?
"The essence of the Trump administration will be transactional”
Global investor, analyst, and best-selling author Ruchir Sharma decodes why Donald Trump won the elections, what India should do, the risks, and more
