General Information

Do you know that Portfolio Management Services (PMS) are trap? They are nothing but the opaque mutual funds. Right now in India, PMS are highly un regulated schemes. Banks and Financial Institutions offer these services to High net worth individuals claiming that, these schemes are for rich and sophisticated investors. But wait. This is a trap. Portfolio Management services are no better than traditional equity diversified mutual funds. The only difference between mutual funds and PMS is that, Mutual Funds have a common portfolio in which large number of investors invest while PMS is customized portfolios for Individuals. But the major difference is that, Mutual Funds are highly regulated and transparent while PMS are highly un regulated and opaque.

So next time, when your bank’s relationship officer call you for PMS or Wealth Management Services than simply say NO. Because the main job of relationship officer of your bank is to sell the financial products of your banks to you for higher commission.

The main job of any Bank is to sell its Financial Products to the high net worth customers for higher commissions. So now review your self. Are you caught in this trap? If yes than don’t worry. You are not alone on this world who is caught in this trap. There are thousands of people like you.

So How to avoid your self from PMS Trap? Well, Financial Education is the key. I have already aware you about this trap and this Financial Literacy is the key to stay away from this trap. So next time, if your bank’s relationship officer call you and offer you these types of products than simply ask your self that, “Why this person is selling this product to me?” If your answer is, “Because this person’s job is to sell the products of bank in which he is working” than simply don’t buy those financial products.

Financial Literacy & Awareness are the only keys to stay away from this trap. So Educate your self…!!!