How to beat the risks in PMS schemes? Get proactive and curtail them

Irrespective of whether Sebi raises the investment threshold for PMS, investors themselves must avoid risks they cannot stomach

The equity bull run of recent years has swelled both the assets under management (AUM) of portfolio management services (PMS) and their total number of clients. Media reports say that market regulator, the Securities and Exchange Board of India (Sebi), is concerned that the current minimum investment threshold of Rs 2.5 million might be too low, allowing many investors not fully aware of the PMS risks to also enter them. The regulator is thinking of raising the minimum investment limit to either Rs 5 million or Rs 10 million. The greater probability is that the minimum limit might be raised