Who should hire a portfolio manager?
Anybody with a nest egg, which meets the minimum investment requirement, can consider using a PMS. However, a PMS may only add significant value in the following cases: Equity bias: Portfolio management services may be ideal for a person who seeks a substantial investment in the stock markets. An equity portfolio also offers greater scope for a manager to add value than does a debt portfolio. Several of the established players in the PMS business focus on equity investments, though some also offer hybrid products. Large surplus to invest: The minimum portfolio size that portfolio managers accept for a customised portfolio ranges from Rs 25 Lacs to Rs 5 crore. So consider a PMS only if you have a substantial surplus to invest in stocks. If you don’t, evaluate if you can use the services of a financial planner or an advisor, instead of a PMS. If you are willing to handle the paperwork associated with investing, you can get a financial planner or advisor to construct an asset allocation p
