A portfolio management service (PMS) is a service provided by a professional portfolio manager to help investors oversee their assets, increase their value, maximise returns and assess risks in an ever-changing market. The assigned portfolio manager may be as involved as the client likes, taking either an active approach to investing or a more hands-off, long-term strategy.
While individuals can manage their own portfolios, hiring a PMS is recommended for novice investors. These experts – like Moize Goulamhoussen, a Senior Portfolio Manager with over 20 years of experience in the financial industry – have invaluable experience maximising returns and growing client portfolios. Both individual and institutional investors can reach benchmarks and outperform the market index with help from a PMS.
Effective portfolio management includes:
- Optimising investments
- Increasing portfolio flexibility
- Minimising risk
- Ensuring capital appreciation
- Protecting capital against the market index
PMS providers understand how to do all of the above, though their involvement differs depending on the client’s chosen service.
The biggest benefit of using a PMS is witnessing the growth of investments over time. A portfolio management service takes on a client’s assets, allocates them according to their risk and the market condition, and generates returns while reducing volatility. This makes it easier than ever for investors to protect their assets and convert them when necessary for prolonged financial security.
An actively involved portfolio manager will have greater access to wider investment opportunities, such as bonds, stocks, private equity and real estate, and expert advice on how best to incorporate them into an investment portfolio, depending on market conditions. The investor’s risk tolerance depends on the strength of their assets in an evolving market, so having an expert make strategic financial decisions also provides peace of mind that a portfolio is protected.
A portfolio management service also prevents investments from stagnating. Depending on its anticipated returns, the portfolio can be customised and adjusted to either mirror the market or attempt to outperform it. The investor maintains control, but the PMS may have discretion to make decisions that will increase the value of the portfolio and benefit the client. And, unlike with mutual funds, the portfolio manager must provide regular updates on investment performance.
From pre-built portfolios to personalised
wealth-building strategies, a PMS is the surest way to protect and grow
investments. A dedicated portfolio manager will shoulder the majority of the
planning to boost returns and maximise rewards. With their help, individuals
can take their portfolios to new heights.
