The stock markets have always been a centre of attraction for most people who know in some context or the other, about the huge earning potential of trading in the stock market. The interest in it comes from the fact that the returns offered by trading in the stock market will beat the returns offered by any other kind of investment.

There are millions of people who have made money trading in the markets, just as there are millions who have lost money playing it the wrong way. Now it doesn’t sound that good for an activity that runs on a simple formula of “Buy low, Sell High”, does it? It is probably due to the fact that most investors are retail investors who have little or inadequate knowledge of the stocks they are investing in.

There are also several people who do not earn appropriate returns on their investment. This may be due to the simple reason that most of them don’t have time to research their investments. Several retail investors invest in mutual funds too, but the nature of such funds which sometimes have long lock-in periods too can be detrimental to many. Additionally, choosing the right fund might be too tasking for some.

It is for such retail investors that there are Portfolio Management Services (PMS). PMS offer investors professional advice on investing their money in the right place in the right way and at the right time. Portfolio Managers help them extract maximum returns from their investments in a calculated, professional way. This way one does not have to worry about his investment as there are experts to take proper care of one’s funds.

Portfolio Management is important for investors who either don’t have the time and skill to research for great stocks and even for some who simply don’t want to bother managing their funds on a regular basis. Also, investing is a systematic discipline and cannot be undertaken lightly. Portfolio Managers invest your money in a diversified way so that the stocks in their portfolio are balanced and the collapse of one sector does not affect the returns of their portfolio.

The kind of portfolios also depend upon a few factors such as the investors’ risk appetite, the time horizon of the investment, the stocks they have invested in, etc. Most portfolio managers advise the investors on the kind of risk appetite they should have and the expected timeline of the returns. That is why financial institutions providing PMS have to research extensively before they come up with a suitable plan for their investors.

Remember, investing is a precise art and one should therefore go about it only in an informed manner.

Author's Bio: 

Fullerton Securities provides complete range of Portfolio Management Services. We also provide guidance for making decisions for asset allocation.