While both Mutual funds and Portfolio Management Services (PMS) allow investors to invest in stocks and bonds by investing their money in a pooled investment vehicle that is managed by professional fund managers, they both are two different investment options serving different objectives and are meant for two different kinds of investors.
Anyone can invest in a Mutual Fund with as little as INR 500/-p.m. but PMS schemes require a minimum investment amount of INR 25 lakhs since they are primarily wealth management products targeted at HNIs. Mutual Funds are heavily regulated by SEBI while PMS schemes don’t have stringent disclosure norms. Also, PMS products are meant for advanced investors who can understand the risks involved since PMS funds may invest in securities that may not be easily tradable in
Read more
