Equity shares represent ownership in a company that entitles its holders to have a share in the profits and the right to vote on the company’s affairs. Equity shareholders are residual owners of the firm’s profit after other contractual claims on the firm are satisfied. Investments in equity shares reward investors in two ways: dividends & capital appreciation. Equity stocks can broadly be classified as Large Cap, Mid Cap and Small Cap. Large-cap stocks are shares of the top 100 companies in India, they are less volatile and provide moderate returns. Mid-cap stocks are shares of the next top 100-250 firms. They give high returns and moderate volatility. Small Cap is small firms that come after top 250 companies in India and they are very risky but give very high returns.
A mutual fund is a vehicle (in the form of a “trust”) to mobilize money from investors, to invest in different markets and securities, in line with the common investment objectives agreed upon, between the fund and the investors. In other words, through investment in a mutual fund, an investor can get access to equities, bonds, money market instruments and/or other securities, that may otherwise be unavailable to them.
Mutual funds also offer facilities that help investors invest amounts regularly through a Systematic Investment Plan (SIP), withdraw amounts regularly through a Systematic Withdrawal Plan (SWP); or move money between different kinds of schemes through a Systematic Transfer Plan (STP). Such systematic approaches promote investment discipline, which is useful in long-term wealth creation
The following are the benefits of investing through mutual funds:
Portfolio Management Services (PMS), a service offered by the Portfolio Manager, is an investment portfolio in stocks, fixed income, debt, cash, structured products and other individual securities, managed by a professional money manager that can potentially be tailored to meet specific investment objectives.
Portfolio management involves selecting and managing a basket of assets that minimizes risk while maximizing return on investments. A portfolio manager plays a pivotal role in designing customized investment solutions for the client.
Funds are managed by professionals so that investors don’t have to keep track of every security. The service will help in growing and securing wealth as well as planning your retirement. The portfolio manager shall not accept from the client, funds or securities worth less than fifty lakh rupees
Types of Portfolio Management Services: