How uniform PMS reporting standards will make fund selection easier

In the absence of easy availability of PMS data, investors have to depend on advisors

The Securities and Exchange Board of India (Sebi) plans to set up an industry body that will draw up a template for bringing uniformity to the way portfolio management schemes (PMS) report their performance. Regulating these entities better has become crucial due to the rise in their assets under management (AUMs) in recent years (see table).  

Different methods of reporting performance: In the absence of regulations, different PMS managers use different methods to report performance. Three approaches are practised. The most popular one is the model portfolio approach where the PMS house reports the returns of the model portfolios created for