Portfolio Management Service (PMS) is a specialized investment service offered by professional financial experts or firms to manage an individual's or institution's investment portfolio. PMS provides customized investment strategies tailored to an investor’s financial goals, risk tolerance, and market conditions. Unlike mutual funds, where funds are pooled from multiple investors, PMS offers personalized asset management with direct ownership of securities.
PMS is typically classified into discretionary PMS, where the fund manager makes investment decisions on behalf of the investor, and non-discretionary PMS, where the investor has control while the manager provides recommendations. This service is usually preferred by high-net-worth individuals (HNIs) due to its higher investment requirements and active management approach.