The Securities and Exchange Board of India (Sebi) recently hiked the minimum investment limit in portfolio management services (PMS) from Rs 25 lakh to Rs 50 lakh. Fewer clients will now be able to access this investment avenue, which has grown impressively over the past few years in terms of both, asset under management (AUM) and number of clients. Let us try and understand what this move means. Thereafter, we shall examine alternatives that clients who are unable to meet the Rs 50 lakh threshold may consider.
Protecting investors: PMS is a riskier product than mutual funds. In the latter,