Portfolio Management Services (PMS) in India – Are They Really Worth?
Recently I came across the Article by Dhirendra Kumar, CEO of Valueresearchonline.com. The Article was The PMS – Non-Service. I am totally agree with the opinion of Mr.Dhirendra Kumar. Recently one of my friends asked me that the top level manager of some well known private sector bank of India was insisting him to invest in his PMS also known as Wealth management Services.
He was offering 8-9% return per month. And not only this but he was also saying that, he himself was making tons of money from this scheme. Well, let me tell you that PMS/Wealth Management Services are nothing but the Opaque Mutual Funds. They will share a profit from your Investments. In other words, you have to take risk as well as suffer a loss if any and if profit happens, they will share it with you.
Wealth Management Services play with your psychology. They will tell you that their scheme will give you unexceptionally high returns. But Beware of such kind of promises and assurances. Just remember the words of Warren Buffet - “If It’s Too Good To Be True, It Certainly is.”
If Businesses grow at the rate of 5-15% per year than how can any other asset can give you 150% per annum return and that is also with the sure shot guarantee? Rather than that Mutual Funds are 100% Transparent. They will offer you the good returns with the 100% transparency.
What I advise you is that, if you have lots of money to invest and you are searching for some financial product for the rich people than just wait for a minute and deduct few zeros from your Investment Capital. And ask yourself that where did you invest this money several years back? The Probable answer will be Stocks, Bonds, Gold, Equity Diversified Mutual Funds, Starting your own Business…etc.. right?
Now, today you have the Investment Capital with several zeros on it. and you are searching for something different kind of Investment Strategy? Just Invest in the same things when you had little money in your pocket. No Matter how Big amount of money you have Today…..!!!!
Understand my Point?…!!!