This year (2024) the Indian stock market gave around 8 percent returns. This is when there was a lot of volatility in the stock markets. Even amidst these ups and downs, Portfolio Management Service (PMS) made investors rich. The returns of some PMS funds have been up to 70 percent this year. What is PMS, who can invest in it, what is the minimum investment required in it? Let us try to know the answers to these questions.
What is the minimum investment required in PMS?
PMS (PMS) is an investment service. In this, every investor’s money is invested accordingly. The fund manager prepares his investment portfolio. PMS is for rich investors who invest more money. In market language, such investors are called High Net Worth Individuals (HNI) and ultra high net worth individuals (UNHI) is called. At least Rs 50 lakh will have to be invested in PMS.
PMS’s AUM doubles in 5 years
Investor interest in Portfolio Management Service (PMS) has increased significantly in the last one year. Between October last year and October this year, the assets under management of PMS have increased by 20 percent to Rs 36.23 lakh crore. In comparison, the asset under management (AUM) of the mutual fund industry is around Rs 67.25 lakh crore. At the end of October 2019, the AUM of PMS was just Rs 18.22 lakh crore. This means that its AUM has doubled in just 5 years.
PMS funds giving highest returns
According to PMS market data, there are currently more than 400 PMS funds in the market. Two of these funds have given more than 70 percent returns in one year. InCred Asset Management’s Incred Focussed Healthcare fund has given 70.6 per cent returns in one year. Stallion Asset’s Core Fund has given 70.5 percent returns during this period. Icred Focused’s AUM is Rs 43 crore, while Core Fund’s AUM is Rs 3,815 crore.
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Investment Strategy of PMS Funds
Many PMS funds invested in stocks of companies of different market capitalization in the last one year. These include multi-cap and flexi-cap investment strategies. Smallcap and midcap schemes have also given very high returns in a year. Among thematic funds, healthcare, ESG and digital based themes have performed well. Blended Rangoli is the largest PMS fund. The AUM of this fund is Rs 15,833 crore. It has given 19.6 percent return in one year. It has adopted a flexi-cap investment strategy.