Trading in a simpler and safer way is a boon for the investors and online share trading has done this task successfully. Online share trading is a streamlined process that has changed the way people used to look at the stock market. Share trading in India has been revolutionized after the advent of online trading. Just looking and the ticker and charts to could not have made the stock market trading as easier as it is today. The portfolio management service has garnished the trading platform and has given an analytical framework, which was previously absent. Although a reasonable amount of time has passed after PMS has developed yet, there are several misconceptions among traders regarding this product.
The prime misconception about portfolio management service arises from the preconceived idea of investors. Most of the time investors look at the portfolio manager, as an omnipotent creature who will solve all the riddles of a stock market. Investors cannot accept the non-performance of this service and any such case treated with tremendous abhorrence. Since the portfolio managers have a niche are of working, it is taken for granted that they will offer the maximum benefit at every point of time. In case the portfolio management service fails to fulfil the objectives it has committed then investors expect the investment managers to charge lower fees.
But as an investor, one needs to understand the directives of portfolio management service before employing it. The PMS is offered to investors who wish to have a bit of more returns than the run-of –the-mill. This is the reason the investment managers invest in stocks that are have high risk. As is always said stocks which have high volatility can offer higher returns. Needless to say that this theory adopted by PMS allows risk to creep into a portfolio and there remains a fear of loss. Besides in the year of cataclysm like in 2008 the loss can be significant.
Now these troubles often lead investors to believe that mutual funds are a lot safer investment option than share trading through PMS.
No comments:
Post a Comment