Introduction

Indian financial markets are rapidly changing, and so is the demand for professional portfolio management services in this country. Basically, the demand for expert professionals who can guide investors through the challenge of effectively maximizing their returns in the market is continuously growing. Whether you are planning to provide portfolio management services in India or not.

Portfolio Management Services: The Concept

PMS is associated with a professional portfolio manager who, on an individual or institutional basis, manages the investments of an individual or an institution. The manager makes an efficient decision on behalf of the investors, having in mind the accomplishment of certain financial goals. In this respect, PMS targets are usually high-net-worth individuals who would prefer a tailored investment approach compared to mutual funds and other collective investment schemes.

Types of Portfolio Management Services

Discretionary PMS: Under this model, the portfolio manager enjoys full discretion in investment decisions. He buys and sells securities on behalf of the client without taking prior approval for every transaction.

Non-Discretionary PMS: Here, investment advice is given by the portfolio manager himself, but the ultimate decision in investment matters lies with the client. No trade can be executed before approval from the client is obtained.

Advisory PMS: Here, the portfolio manager will advise the client concerning investment strategies: however, the execution of trades shall be at the client's end.

Steps to Offer Portfolio Management Services in India

Registration with SEBI: For PMS business in India, you have to get yourself registered with the Securities and Exchange Board of India. You need to fulfill certain eligibility criteria to do so. You can consult to Tradetron team for a better understanding, Click Here.

Devise a Sound Investment Strategy: No PMS can be successfully executed without an adequate investment strategy to meet or fulfill the financial goals of your clients. Your strategy may be to exclusively deal in equities, debt, or both. Your investment strategy should necessarily be founded on sound research and a well-analyzed market.

Skilled Team: The team should consist of a skilled portfolio manager, analysts, and financial planners. This will ensure the performance of your client's portfolios is heading in the right direction for your services to gain credibility.

The establishment of a client-focused, web-based platform should allow clients to view and access their portfolio information and enhance performance tracking and communication with their portfolio manager. Ease and transparency will be paramount in the client experience.

Compliance and Reporting: The PMS service providers shall abide by the regulations laid down by SEBI with regard to period reporting to their clients, ensuring best practices for transparency. Ensure that your operations are fully compliant with the regulations, otherwise it will attract a lot of legal complications.

Marketing and Client Acquisition: Marketing of the PMS itself is very important to acquire clients. Digital marketing, referrals, and financial advisor partnerships can be ways to reach potential clients. 

Continual Customer Management: Regular communication with clients would engender a sense of confidence and satisfaction. The customer needs to be informed about the performance of the portfolio, which is based on market conditions or even any change in strategy. This proactive approach will retain customers and ensure long-term relationships.

How Tradetron Can Support Your PMS Offering

Portfolio management service will be of great value with the Tradetron Algorithmic Trading Platform. Integrate Tradetron technology into your operation, and this would enable partial automatization of your investment strategy, backtesting of portfolios, and multi-account management with great efficiency. Plus, you can customize every single portfolio using Tradetron to suit each particular client's needs and preferences.


Conclusion

Offering portfolio management services in India requires proper planning, understanding of the various facets of the regulatory regime, and delivering value to your clients come what may. The steps mentioned above are what one needs not just to set up a successful PMS business but to match the growing expectations of Indian investors with the help of technology like Tradetron's platform.



FAQs

1. What is Portfolio Management Services?

PMS is the professional management of an individual's or institution's investment by an appointed portfolio manager who operates to attain a specific financial goal with an appropriate strategy tailored to the individual's needs.

2. What are the types of PMS in India?

Fundamentally, there are three kinds: Discretionary PMS, wherein the manager himself decides on all the investments; Non-Discretionary PMS, wherein each and every decision is approved by the client; and Advisory PMS, wherein the manager advises but the actual execution of trade is carried out by the client himself.

3. How do I start a PMS in India?

One needs to get registered with SEBI, frame a good investment philosophy and strategy, possess an effective team, design an adequate client interface, and assure compliance and marketing of the services offered.

4. What are the SEBI guidelines for PMS service providers?

According to SEBI, PMS providers need to essentially have a net worth of at least ₹ 5 crores and also guarantee complete transparency through periodic reporting to the clients and rigorous standards for compliance.

5. How can technology at Tradetron assist in offering the PMS?

Tradetron's platform will be able to automate investment strategies, provide multi-client account management, and a backtesting feature that can make efficient portfolio management with customization easier to offer.