As people become richer, it's natural for them to wish for above-average returns from their savings. Towards this end, some opt for portfolio management services, or PMS, offered by various entities registered with the market regulator.

How It Works?

The investor and the portfolio manager enter into an agreement detailing the investment strategy, goals and other details. The investor can offer either a sum of up to Rs 25 lakh or stocks worth this much. PMS are offered on discretionary as well as non-discretionary basis. In the former, the manager takes investment decisions and has the power of attorney to manage the investor's demat account. In nondiscretionary, he merely suggests investment ideas; the rest is the investor's prerogative.