Investment is the employment of funds on assets with the aim of earning income or capital appreciation. It has two attributes namely time and risk. Present consumption is sacrificed to get a return in the future. The sacrifice that has to be borne is certain but the return in the future may be uncertain, this attribute of investment indicates the risk factor.

Dimensions of Investment
• • • • Element of sacrifice Element of futurity Element of risk Expectation of gains

• Element of sacrifice- A person makes a commitment of investing money either in buying shares, or a piece of land or plant, etc, it entails an element of sacrificing current consumption of money value. By investing his money at present he is postponing the utility of the money, which he would have derived at present through current consumption of the money. Thus sacrifice is one of the basis of expectation from the investment.

• Element of futurity- Every investment is done with the aim of holding it for a certain time period. The holding period is generally classified into three- short term, medium term and long term.

• Element of risk- Every investment activity has an element of the futurity and the future is always full of uncertainties, it introduces an element of the risk in any investment activity. By risk is meant the chance of having an adverse or low return as compared to the investors expectations.

• Expectation of gains- The element of sacrifice of current utility of money value, futurity and risk of loss of money value- all these put together become the basis of expecting gains from the invested money. Generally, the gains expected by the investors are compensation for the following: • Compensation for waiting • Compensation for lose in purchasing power • Risk premium corresponding to level of risk

Difference between investor and speculator
Time Horizon Risk Return Plans for a longer time horizon (from one year to few years) Assumes moderate risk Likes to have moderate rate of return

Plans for a very short period. Willing to undertake high risk. Likes to have high returns for assuming high risk


Considers fundamental factors & Considers inside evaluates the performance of information, heresays the company regularly and market behaviour


Uses his own fund and avoids borrowed funds

Uses borrowed funds to supplement his personal resources.

Investment Objectives
• • • • • Return Risk Liquidity Hedge against inflation Safety

• Return- Investors always expect a good rate of return from their investments.
Return = End Period Value – Beginning Period Value + Dividend Beginning Period Value X 100

Return = Capital Appreciation + Dividend Purchase Price X 100

• Risk- Risk of holding securities is related with the probability of actual return becoming less than the expected return. An investment whose rate of return varies widely from period to period is risky than whose return that does not change much. Every investor likes to reduce the risk of his investment by proper combination of different securities.

• Liquidity- Marketability of the investment provides liquidity to the investment. The liquidity depends upon the marketing and trading facility. If a portion of the investment could be converted into cash without much loss of time, it would help the investor meet the emergencies. Stocks are liquid only if they command good market by providing adequate return through dividends and capital appreciation.

• Hedge against inflation- The return rate should be higher than the rate of inflation, otherwise the investor will have a loss in real terms. Growth stocks would appreciate in their values overtime and provides a protection against inflation. The return thus earned should assure the safety of the principal amount, regular flow of income and be a hedge against inflation.

• Safety- The selected investment avenues should be under the legal and regulatory framework. If it is not under the legal framework, it is difficult to represent the grievances, if any. Approval of the law itself adds a flavour of safety. The level of safety differs from investment to investment.

Investment Process
Investment Process

Investment Policy



Portfolio Construction

Portfolio Evaluation

• Fund • Objective • Knowledge

• Market • Industry • Company

• Intrinsic Value • Future Value

• Diversification • Selection & Allocation

• Appraisal • Revision

Approaches to Investment Decision Making
• • • • Fundamental Approach Psychological Approach Academic Approach Eclectic Approach

Fundamental Approach
• There is an intrinsic value of a security and this depends upon underlying economic (fundamental) factors. The intrinsic value can be established by a penetrating analysis of the fundamental factors relating to the company, industry and economy. • At any given point of time, there are some securities for which the prevailing market price would differ from the intrinsic value. Sooner or later, of course, the market price would fall in line with the intrinsic value. • Superior returns can be earned by buying under- valued securities (securities whose intrinsic value exceeds the market price) and selling over- valued securities ( securities whose intrinsic value is less than the market price).

Psychological Approach
• The Psychological approach is based on the premise that stock prices are guided by emotion, rather than reason. • Stock prices are believed to be influenced by the psychological mood of the investors. • Those who subscribe to the Psychological approach or the castle in the air theory generally use some form of technical analysis which is concerned with a study of internal market data, with a view to developing trading rules aimed at profit- making. • The basic premise of technical analysis is that there are certain persistent and recurring patterns of price movements which can be discerned by analyzing market data.

Academic Approach
• Stock markets are reasonably efficient in reacting quickly and rationally to the flow of information. Hence, stock prices reflect intrinsic values fairly well. • Stock price behavior corresponds to a random walk. This means that successive price changes are independent. As a result, past price behavior cannot be used to predict future price behaviour. • In the capital market, there is a positive relationship between risk and return.

Eclectic Approach
• Fundamental analysis should be conducted to establish certain value anchors. • Do technical analysis to assess the state of the market psychology. • Combine fundamental and technical analyses to determine which securities are worth buying, worth holding and worth disposing off. • Respect market prices and do not show excessive zeal in beating the market. • Accept the fact that the search for a higher level of return often necessitates the assumption of a higher level of risk.

Investment Avenues

Investment Avenues

Equity Shares

Fixed Income Securities

Mutual Fund


Tax Sheltered Schemes

Life Insurance

Real Estate

Precious Objects

Financial Derivatives

Investment Avenues
• • • • Short-Term Investing Saving Bank a/c Money Market Funds Bank Fixed Deposits • • • • • • • Long- Term Investing Mutual Funds Post Office Savings PPF Company’s FD Bonds & Debentures Life Insurance Policies • Equity Shares

Mutual Fund

Public Provident Fund
Public Provident Fund (PPF) is a scheme of the Central Government, framed under the PPF Act of 1968. Briefly, the PPF is a government backed, long term small savings scheme which was initially started by the Government because it wanted to provide retirement security to self employed individuals and workers in the unorganized sector. Investment in PPF provides a safe investment, a decent rate of return, tax benefits (deduction and tax free interest). PPF is a long term investment option.

In recent times gold has appreciated as a new class asset and it is also termed as a very good hedge . In Indian Context, earlier people used to buy gold in form of jewellary on occasions like marriage, festival etc. On the investment front, few investors used to buy gold bars. Today one has more options and slightly better options to invest in Gold. More and more investors are buying Gold ETFs, as this is one of the best ways to invest in Gold. Another variant is investing in gold mines across the world. This option is also available through MF route as there are specific MF scheme investing in gold mining companies across the world.

Current Scenario
• Over the past six months, the price of gold has zoomed from Rs 20,688 per 10 gm on 1 January to Rs 23,310 per 10 gm on 21 July. Buying a small piece of jewellery can deplete the monthly income significantly.

• To counter the price rampage, jewellers have come up with big incentives on their gold savings schemes, which have been in vogue for nearly a decade now. They are offering gifts and providing free entry as privileged members, among other things.

Gold Jewellary As An Investment Option
• Under a gold savings scheme, one invest a monthly sum with the jeweller for a fixed period and he (jeweller) pays for the last installment. So if one want to avail of the scheme for a year, he/she pays Rs 5,000 for 11 months. The twelfth installment will be paid by the jeweller and investor will be able to buy gold jewellery worth Rs 60,000 from him.

• However, we can use the money to buy only gold or diamond jewellery, not silver or gold coins, even bars. Buyer may also have to bear other expenses like extra making charges. A case was discovered by Bangalore-based Yusuf Motorwala . After investing Rs 1,500 a month with a jeweller for 18 months, he was told in February this year that he would have to pay extra-making charges of Rs 350 per gram.

• Such charges vary among jewellers, but the more popular the brand, the higher the making charges. Moreover, if you don't like any of the jewellery pieces that are on offer, you will not get a cash refund, a condition stated upfront by most jewellers. "Even if you exit a scheme in the middle of the year, you will not get a cash refund or bonus. You will have to purchase jewellery using the amount saved till that date," says a manager at a Mumbai jewellery store. • As for the mode of payment, you are required to deposit a cheque every month with the jeweller or give post-dated cheques. Some jewellers also offer the ECS facility, where a fixed amount is automatically transferred from your bank account into their account. If you are unable to pay an installment, your term will be extended.

Gold As An Investment Avenue
• • • • Investment in gold can be done through Gold Coins Gold ETFs E Gold

Gold Coins
• Gold coins or bars are physical form of gold that investors can use to invest in Gold as a commodity. Since, there is physical delivery of this commodity, investor will require a bank locker to safely store it. So, they would have to pay a fixed locker fee annually for this. Banks or Jewellers cut some percentage during the resale of the gold coin. If you resell the gold coin to another Jeweller they are bound to cut a bigger percentage during resell even if you have the gold purity certificate. So, effectively investor is tied to the Bank or Jeweller from whom they bought the gold coin. Of course, the coin has the advantage of gifting it to your near and dear ones during festivals or marriages - a theme prevalent in India.

Gold ETFs
• A better option is to invest in gold exchange traded funds (ETFs). "Gold ETFs also have lower expenses. You can buy gold ETF units and convert them to physical gold later," adds Rustagi. Another thing that needs to be considered is the risk while investing with a jeweller, especially ensuring that the jewellery you buy is of the carat that was promised. Vijay Bhambwani, CEO,, a commodity trading advisory, says, "There are various funds, such as Benchmark Gold BeES, UTI Gold ETF and Quantum Gold ETF, which allow you to buy even half a gram of gold. The price of gold in these funds is the same as the market price of gold, but these are a lot safer because of being listed, whereas jewellers are unorganised players. You have no regulatory redressal in case of a dispute in the case of the latter." While gold ETFs are currently considered more tax-efficient compared with gold jewellery, the Direct Taxes Code, which will come into effect next year, is set to remove any such distinction. If you redeem the gold ETF units in 2012, the capital gains will be added to your income and taxed accordingly.

• Gold ETFs basically are a way that you can buy or sell small pieces of huge piles of gold, stored in vaults maintained by a custodian, with the same convenience as buying and selling stocks on an exchange. So far to date, the price of these ETFs have very closely tracked the spot price of gold. However, investor will have to bear the cost of demat account and its annual maintenance. Investors can easily resell the ETF at any point as there is enough liquidity in the market.

• An exchange traded fund (ETF) looks like a mutual fund that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange. ETFs experience price changes throughout the day as they are bought and sold throughout the trading days. When you buy shares of an ETF, you are buying shares of a portfolio that tracks the yield and return of its native index. Buying/selling ETFs is as simple as buying/selling any other stock on the exchange allowing the investors to take advantage of intraday price movements. The main difference between ETFs and other types of index funds is that ETFs don't try to outperform their corresponding index, but simply replicate its performance. ETFs don't try to beat the market, they try to be the market.

Advantages of ETFs

1. Convenience - ETFs can be bought/sold any time of the day when the market is open, as they are traded on a real time basis.
2. Diversification - By investing in ETFs an investor can enjoy the diversification benefits of an index fund with the flexibility of a stock. 3. ETFs can be bought and sold anytime during market hours at a price which closely replicates the actual NAV of the scheme. 4. With a small amount of money an investor can get the benefit of an entire underlying asset which could be an Index or a commodity like gold. 5. Lower expense ratio - ETFs are managed passively. Hence administrative charges are low which pushes down the expense ratio.

6. Tracking error, which is divergence between the NAV of the ETF and the underlying Index, is generally observed to be low as compared to a normal index fund due to lower expenses and the unique in-kind creation / redemption process.

E- Gold
• "E-Gold" (Electronic Gold) is a unique investment product launched by the National Spot Exchange Limited (NSEL) first time in the history of Indian commodities market. The product enables investors to invest their funds into gold in smaller denomination (1,2,3.. grams) and hold it in demat form. It is available on the pan India electronic trading platform set-up by National Spot Exchange, which can be accessed through members of NSEL or their franchises. It provided an unique opportunity to buy, accumulate, hold and liquidate E-Gold as well as to convert the same into physical gold coin or bar in a seamless manner, but initially, delivery will be made for Mumbai, Ahmadabad or Delhi locations (later NSEL intends to increase the number of centres in the future to offer physical delivery).

The transacting pattern of this product is similar to the cash segment of the equity markets, where the E-Gold bought by you will be settled on a T+2 basis (i.e. Trading day + 2 days). If you buy EGold today, the same will reflected (credited) in your demat account 2 days from the date of purchase. Similarly, if you have sold today, the same will reflected (debited) in your demat account 2 days from the date of sale.
However, in order to transact in E-Gold, you are required to open a demat account with any of the Depository Participants (DPs) empanelled with NSEL. And such DPs are Global Capitals, Religare, Karvy, Goldmine, IL&FS, Monarch Capital, SMC and SSD securities. Also, this is not a futures contract as you are trading in the spot market.

Features of E- Gold
• Convenience in transacting: E-Gold provides you seamless transacting. You simply have to call your broker and place your order to transact (buy or sell) in the product, and your demat account too will reflect the transaction (buy or sell) done. You can transact during the long trading hours of NSEL, which are from 10:00 am till 11:30 pm. Liquidity: E-Gold provides you, with the requisite liquidity as you can sell any number of units (subject to the existing units held by you), at anytime during the trading hours of the exchange. Cost effective: E-Gold enables you to transact in gold, by incurring minimal cost (0.60 per unit per month, which is the annual maintenance cost of your demat account, plus some marginal (generally 0.50%) brokerage charged by your broker. Hence, by opting for this instrument for gold investments, you save onto the holding cost, which you otherwise pay steep while stacking physical gold in your bank locker. No risk of theft: E-Gold eliminates the risk of theft of your precious yellow, as the NSEL acts as the custodian of your gold. Quality: You can be rest assured that the quality of your gold will never be compromised, because as per the Securities and Exchange Board of India (SEBI) regulations, the purity of underlying gold should be 0.995 fineness and above. •

• •

Comparison of various investments in Gold

Real Estate
• The only way one could invest in this asset class earlier was to buy a piece of land or house/shop. However, the property market is not that efficient, not very transparent at times, the liquidity a major constraint and the transaction costs very high thus making the decision to invest very difficult. One has to look at the options then like reality funds. A reality fund is an entity established usually in the form of a trust or a company for collecting funds from various investors (known as contributors) which then invest these funds in portfolio companies engaged in developing real estate projects with the objective of realizing profits from such investments with in a defined

time frame. These funds are typically structured as pooled vehicles into portfolio companies or special purpose vehicles (SPVs), which offers the contributors a number of benefits such as leveraging and tax efficiency. The portfolio companies generate cash flows in the term of periodical income and/or sales realization and generate returns largely through dividend and capital gains for the contributors. One can also buy stocks of Real Estate companies being listed on exchanges. There is a possibility now for Real Estate Mutual Funds to be introduced soon.

In the recent times this asset class has established its return credentials and the market depth is increasing day by day. Auction around the year and around the globe is providing bit of liquidity regularly. There is insurance cover available and the logistics improving day by day. The artist history, work quality, medium and movement determine value of an art piece. Apart from insurance and storage, restoration infrastructure is improving the asset class credentials and investors are looking at long term prospective. It has become fashionable to invest in art these days. Art investment could be through the route of art advisory for art collectors whereas it can be art funds for the pure investor.

Equity Shares
Growth Shares – The stocks that have higher rate of growth than the industrial growth rate in profitability are referred to as growth shares. Growth stocks have earnings that are increasing at a faster rate than their industry’s average. These are usually in new or fast growing industries and have the potential to give shareholders return greater than those offered by the stocks of companies in older or more established industries. Growth stocks are the most volatile class of stock. Growth stocks often have a relatively high P/E (Price to Earnings) ratio when compared to lower risk stocks. These stocks also typically do not pay a dividend to shareholders as keeping the money in the company is deemed more profitable. Investing in growth stocks can be be very profitable, in fact much more so than investing in blue chip stocks. However, the potential for higher returns is often a trade off for greater risk. Google and Coco Cola Value stocks- These stocks belong to companies with good earnings and growth potential that are currently selling at a low price relative to their intrinsic value. Due to some problem that may be only temporary in nature, investors are ignoring these stocks. Since it can take quite some time for their true value to be reflected by their price, value stocks are usually purchased for the longterm. Income Shares – These stocks belong to companies that have comparatively stable operations and limited growth opportunities. Income stocks are generally not expected to appreciate greatly in short run, but consistently par steady dividends. These are typically utilities, financial institutions and other stable and well- established companies. Blue chip stocks are the stocks of large, well- known companies with good reputation and strong records of profit as well as growth potential.

Defensive Shares – These stocks are relatively unaffected by the market movements. Cyclical Shares – The business cycle affects the cyclical shares. The upward and downward movements of the business cycle affect the business prospects of certain companies and their stock prices. Such shares provide low to moderate current yield. Speculative Shares – Shares that have lot of speculative trading in them are referred to as speculative shares. During the bull and bear phase of the market, this type of shares attracts the attention of the traders. Penny stocks are very risky speculative stocks issued by companies with short or erratic performance histories. Though uncertainty prevails, their low price appeals to investors.

Traditional Instruments VS. Mutual Funds
• There are investors who feel that it is much safer to invest in bank FDs, insurance or bonds, than in mutual funds. MF industry is a very well regulated one, and that should be a big comfort for investors. The regulations governing the industry are well defined and the SEBI is doing a great job of monitoring its working and ensuring that schemes are managed on a day to day basis in the interest of investors. Besides, MFs offer a variety of products to suit the risk profile and time horizon of investors. It is time that investors seek out smart options like MFs to get the most out of their hard- earned money.

• RDs do not provide adequate safeguard against inflation. It is not a tax efficient option either.

• Tactical asset allocation is a strategy, under which you maintain a constant surveillance on the movements of the market. This is done in order to adjust the percentages of assets distributed in different sectors. For example, let's say that your current asset portfolio is divided between bonds, precious metals, natural resources, real estate and stocks. Suddenly, you determine that the price of oil is going to stop it's decline and rise again to the levels of last month. In order to exploit that opportunity, you may sell some of your real estate (which is going through a bubble-period anyhow), and buy some stock from oil companies.

• Buy and Hold • If you choose this investing strategy you will have to purchase a stock and be ready to hold it over a long period of time, since buy and hold strategy is based on the assumption that the price of the stock will rise with time. However, due to the dynamics of the market you can never be sure that this will happen. This investing strategy elaborates on the idea that the market will continue to expand due to its capitalist nature. As a result it assumes that the stock prices will continue to rise and shareholders will enjoy higher dividends. • The market fluctuations and inflation levels are smoothed over the long-term. The advantage of this investing strategy is that you pay less commission fees and taxes since you trade less. You hold the stocks for a long time and don't trade on frequent basis.

• • • •

Growth Investment Strategy Growth investing strategy includes the search of stocks that have a potential for growth. The latter means that at a certain point in time the price of the stock will rise. As a result, growth investors target young companies that have the potential of exceeding its peers in the industry or sector. An example of such companies is the technology oriented ones that began their development during the 1990s. Now, most of these companies are prosperous leaders in the field. The investors that bet on the mere idea, which in their beginning was all that such companies were able to offer, now enjoy their profits. However, it is important to be able to spot those companies that are to succeed. You should also keep in mind that growth investing implies risk in its nature since some of the young companies may fail in their innovative activities.

• •

• • •

Growth Investing Strategy This strategy aims to identify the growth potential of a company. Companies with high earnings growth are very attractive to investors who believe that such companies will experience continuing rise in their stock price since more and more investors will want to take advantage of the regular and large dividend paying. One of the most important factors for consideration in growth investing is the earnings per share of the company. Investors observe the changes in the earnings per share over the years not neglecting the revenue growth as well. What is more, in order to get a clear view on the willingness of the market to pay for a given earnings growth, investors examine the relationship between the price/earnings ratio and the annual earnings growth. Keep in mind that this strategy carries a certain degree of risk, since the target companies are usually young. However, as you know risk and reward go hand in hand, meaning the higher the risk the higher the potential reward from the investment.

• Income Investment Strategy • Income investors are characterized as the most conservative ones. The major goal of these investors is the acquisition of income. As a result they aim at companies that pay on regular basis dividends, which are of a stable and high nature. Additionally, these companies are large and well-established. • People that are most often found in this category are those that are nearing their retirement. Even though this investing philosophy does involve a degree of risk, it is still qualified as one of the most conservative.

• Value Investment Strategy • The target stocks of value investment strategy are those that are undervalued by the market. This means that the price of the stock is lower than the real value of the company that has issued it. • Such stocks have been overlooked by the market in its chase after what is considered hot at the moment. In order to determine whether the stock is of a value type, most investors refer to its price to earnings ratio. If it is low, then the market is unwilling to pay more for the stock. • However, if you are a value investor make sure that there are no other reasons for the low price of the stock, such as an inner problem within the company. If there isn't such, then purchase the stock and hold it until the market recognizes its real value and corrects the price.

• GARP Investing Strategy Growth at Reasonable Price (GARP) represents a combination between the value and growth investing strategies. Therefore, applying this strategy will involve the search of a stock that is both undervalued and has a potential for future growth. One may find it difficult to find such a stock due to the opposing characteristics of growth and value investing. However, it is not unattainable. Investors applying this strategy use the PEG (price-to-earnings-growth) ratio as an indicator for a stock that possesses a growth potential at a price that is below the real value of the company.

Systematic Investment Planning is investment process which helps you to regularly invest a pre-determined amount into mutual funds (equity, debt, or hybrid funds) at pre-determined dates. SIPs tend to be most rewarding when done into equity mutual funds, because equity by its very nature, is the most volatile asset class. Hence an SIP into an equity fund gives the greatest opportunity for
to average one's costs over market highs and lows.

• Taking a SIP instead of a lump sum investment, offers investors with the following advantages: • Self Control Most investors find it difficult to resist the urge to try to time the markets. We all have the same weakness when it comes to a trying to catch a market low or a market high. But the task of doing this correctly all the time is incredibly difficult even for expert investors. An SIP helps to resist this urge by automatically making investments every month. Also, it helps to ensure that you invest regularly, and reduces the chances of impulse spending.

Averaging your Costs If market lows (as experienced during the turmoil of 2008 and 2009), gave you a tough time, then SIPs would have been of help. By buying at various market levels, your investments would have been made at different NAVs of the mutual fund, therefore averaging your costs. SIPs work best in a falling market – they ensure that you buy when the markets are falling i.e. you Buy Low! It is only in markets that are continuously falling that an SIP would not be helpful. However over the long term, markets rise. That's when your SIPs would reap profits. While investing systematically in mutual funds, if you choose about 3 - 5 funds depending on your asset allocation and risk appetite, you can choose different SIP dates for your investments. This means you are investing on 3 or 5 different market days per month, instead on 1. So with 5 different schemes you can invest on 60 days in a year. This would help you average your costs over 60 market days instead of 12 market days. Thus, the more market days you invest for, the more you are averaging your costs and the greater the chances for better returns.

• Light on the wallet Many times it is not possible to invest a substantial amount in one shot. Investing via an SIP helps to invest even small amount at regular intervals. You can start an SIP with as little as Rs. 500 per month. Just remember to invest as much as is comfortably possible. Even a Rs. 500 increase in your SIP can have an excellent effect on your wealth over the long term. For example, if you were to invest Rs. 5000 per month into a well chosen equity mutual fund for 20 years, you would be investing a total of Rs. 12 lakhs. Assuming a 15% rate of return on equity over the long term period (in this case 20 years), your investment would grow up to Rs. 75.79 lakhs – a hefty amount! But if you invest just Rs. 500 more each month i.e. do an SIP of Rs. 5,500 instead of Rs. 5,000, your total investment would be Rs. 13.20 lakhs, which would grow to Rs. 83.38 lakhs!

There are a few things to be kept in mind while investing in an equity mutual fund: Establish your investment time horizon. Don't just keep on investing – know why you are investing (for your retirement, for your child's education, to buy a house etc) and once you achieve the corpus required, shift your money out of equity and put it in a safe instrument such as debt. Equity Mutual Funds are subject to short term capital gain tax if redeemed before 1 year. So if you are doing an SIP of for example Rs. 1,000 a month i.e. Rs. 12,000 a year, and after 1.5 years your money has doubled due to excellent market conditions and you want to redeem Rs. 12,000 – then be careful of how many units you are redeeming. It is only the first 6 investments that are more than 1 year old. The later investments are less than 1 year old and are subject to short term capital gains tax.

• ELSS schemes floated by fund houses from tax saving perspective have a lock in period of 3 years. This means that if you choose to do an SIP into an ELSS fund, each and every one of your investments is locked for a period of 3 years. • Choose your schemes well, preferably on the basis of unbiased well researched recommendations. If you do an SIP into a poorly performing fund with fundamentals that are not good, your investment may not perform the way you want it to.

Portfolio Management Services
• PMS is a customized wealth management solution for investors seeking to enjoy flavor of equity as an asset class with a long term investment objective. • It is an ideal vehicle for wealth creation with the help of expert knowledge of focused fund managers blended with a customized approach towards equity investments depending upon individuals risk appetite and investment preferences. • It is a unique solution for those who are looking forward to tap the growth opportunities in the financial markets but do not have the time and specialized skills required for the same.

Comparison of PMS Vs Mutual Fund
Portfolio Management Low Cost Personalized Fund Management Interaction with portfolio managers and analysts More flexibility in fund management leading to improved returns Small corpus- return positive Mutual Fund High Cost Standard Fund Management No interaction with Fund Managers Lack of flexibility leads to deterioration in returns Large corpus- return negative

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