Portfolio Management Services or Equity Mutual Funds: Key differences

 

Portfolio Management Services (PMS) and Equity Mutual Funds are two popular investment avenues for investors seeking exposure to the equity markets. While both involve investing in stocks, there are significant differences in their structure, management, and operational aspects.

 

PMS is a specialized investment service offered by licensed portfolio managers or asset management companies. It involves creating and managing a customized portfolio of stocks, tailored to the individual investor's risk profile, investment objectives, and preferences. The portfolio manager actively manages the investments, making buy and sell decisions based on their research and expertise.

 

On the other hand, Equity Mutual Funds are investment vehicles that pool money from multiple investors and invest in a diversified portfolio of stocks. These funds are managed by professional fund managers, who make investment decisions based on the fund's stated investment objective and strategy. Investors in mutual funds own units or shares of the fund, rather than directly owning the underlying stocks.