PMS is a long term wealth creating product. Do not just invest, make an informed Decision
India as a country lays emphasis on education in a way that very few other communities do. Since ancient times we have always been very active on educating the community, which is visible across our ancient literatures and monuments . The emphasis on education over the years has not lessened in our society. To celebrate the importance of education we celebrate the birthday of Abdul Kalam Azad , the first education minister of Independent India as National Education Day. His contribution to the Indian Independence struggle by the way of his journalistic and literary work is unparalleled.
At PMS AIF World we have always been proponent of making informed portfolio choices. Informed choices are a function of knowing the right things, to celebrate this day we bring the key things to know while choosing a PMS.
- Know your fund manager : Fund managers are the captain of the ship, they navigate the portfolio through thunder and calm. Fund managers make every important portfolio decision, thus we recommend investors to know the style , the pedigree and past record of the fund manager at the helm of affairs, fund manager’s performance will be a function of these things.
- Know your horizon :Investments should be made for long term wealth creation , one must redeem only when investments have yielded the desired results or the choices have gone horribly wrong. PMS-es typically are long term investments , one should not look at them month on month or daily, kept over long term these yield superior returns and knowing a horizon in your mind will ensure better tracking or performance.
- Compare and know the various styles of investment : Since a PMS is something an investor is going to associate with for a long time and not look at changing strategies monthly or quarterly , hence it’s important and compare the various styles of portfolio management before making the decision. Different styles of investments could have different return trajectories over time horizons , your choice of the themes and style of investment might make returns look different from others.
- Sustained Performance over longer periods of time : this is one of the most important aspect while choosing any PMS strategy , the fund must have performed well through out most market cycles and the consistency should have prevailed over the vintage of the fund, there could be strategies which do well in certain situations-one must evaluate if the performance has been consistent.
We at PMS AIF WORLD do unparalleled analysis of PMS-es in the country which help our investors make better investment decisions. Use our PMS comparison tool to know more.