Portfolio management service (PMS) is different from asset management companies. There is a world of a difference between PMS offered by banks and other investment advisors.
This service varies from pure mutual fund portfolios, direct investment in stocks and/or a combination of both. The only similarity between PMS and mutual funds is that the actual investment decisions and stock selection are made by a fund manager. It is not necessary that PMS will offer better returns than mutual funds or vice versa.
PMS offers personalised service and customised portfolio solutions. However, at Rs 20 lakh, the level of personalisation offered will not be significant. Further, your money will be invested in a pool with that of many other investors.
One of the features that goes against PMS is that unlike mutual funds, it does not come under the purview of the Securities and Exchange Board of India (SEBI). Besides, the cost structure of PMS is very high. You also need to be cautious of the past performance indicators quoted by financial advisors.
These are often quoted over convenient periods. However, in case of mutual funds, performance indicators are available in the public domain.
Please advise me about good tax saver funds for higher returns for the financial year 2008-09.
