Difference between PMS and Mutual Fund
Ninad RamdasiCategories: DSIJ_Magazine_Web, DSIJMagazine_App, Editorial, Letter to Editor, Letter to Editor
The special story in the recent issue on performance of PMS funds in 2022 gave me some good insights as to how the various PMS have performed in 2022. Can you please lay down some differences between a PMS and a mutual fund? - Amita
The special story in the recent issue on performance of PMS funds in 2022 gave me some good insights as to how the various PMS have performed in 2022. Can you please lay down some differences between a PMS and a mutual fund? - Amita
Editor Responds: We appreciate your kind words of encouragement. To answer your query, PMS funds offer a high degree of customisation, while mutual funds are designed to meet the needs of a broad group of investors. Mutual funds are generally more liquid and can be bought and sold on a daily basis compared to PMS funds that typically have a lock-in period ranging from 1-3 years. Moreover, some mutual funds in India may have minimum investment requirements as low as Rs 500 while PMS funds may require investments of Rs 50 lakhs or more. Also, PMS funds typically have higher fees compared to mutual funds. Hope this helps. Keep writing to us.