Mutual Fund vs Portfolio Management Schemes

Difference between Mutual Fund and Portfolio Management Schemes

Basis of DifferenceMutual Fund (MF) Portfolio Management Schemes (PMS)
ObjectiveTo earn relatively higher returns than
benchmark
Vs
To provide a completely tailor made
portfolio for each investor to suit his
requirements
MeaningA trust which pools the savings of
several investors together and invest
this collected fund in diversified
basket of securities at low cost
Vs
A personalised service and customised
portfolio solution is offered depending
on risk appetite and returns expectation
of the investor
Investment patternInvests under risk controlled asset
classes and work under rules and
guidelines set up by the regulator
Vs
Invests in riskier securities to
maximise returns
ManagementLess aggressively managed as compared to
the hedge fund
Vs
Very aggressively managed
Who can investSmall investors who want to create long
term wealth and achieve their short term
or long term objectives
Vs
High net worth individuals (HNIs)
Fee structureBased on the percentage of assets
managed - a fixed fee structure
Vs
Offers more than one option for the fee
structure, popular structure is a low
fixed fees plus performance incentive
StrategyWill invest in diversified portfolio
having 40-50 stocks from many sectors
Vs
10-20 stocks strategies or other
financial instruments at a given time
TransparencyPortfolio and performance are disclosed
in monthly fact-sheet of final holdings
by the fund house, available to all
Vs
Investor knows every purchase and sale
of shares done for him including their
prices, brokerage, other charges, etc.,
available to investor only
RiskLess risky due to diversification
Vs
More risky due to concentration
Minimum investmentCan be as low as Rs. 500
Vs
Rs. 25 lakh
DocumentationApplication form
Vs
PMS investor and the portfolio manager
enter into a separate agreement
Investment in derivatesCan invest in derivatives (F&O) markets
for the purpose of hedging positions
only
Vs
Can invest in derivates (F&O) markets to
make trading gains other than hedging
PerformancePast performance of fund is available
Vs
Can not guage the performance of a PMS
product before one invests in it
Participation of investor
in selection of
securities
Can not participate
Vs
PMS fund manager explains logic behind
stock selection, shares research report
and properly answers all the queries
raised by the investor
RegulatorSecurities and Exchange Board of India
(SEBI) is the regulator
Vs
Un-regulated
Tax efficiencyTax efficient - Long term capital gains
(LTCG), tax exemption, etc. options
available
Vs
Tax inefficient as whenever PMS fund
manager buys and sells, the client has
to pay short-term or long-term capital
gains as the stocks are transacted in
investor's account directly

Upcoming Bank Holidays

2019 April 19 is a bank holiday in Andaman And Nicobar Island due to Good Friday.
2019 April 21 is a bank holiday in Tripura due to Garia Puja.
2019 April 27 is a bank holiday in Andaman And Nicobar Island due to 4th Saturday Bank Holiday.
2019 May 01 is a bank holiday in Andhra Pradesh due to May Day / Labour Day.

Loan Services

Highest FD Interest Rates

Bank NameTenureInterest(p.a.)
Esaf Small Finance Bank 12 Months8.75%
Suryoday Small Finance Bank12 Months8.50%
Utkarsh Small Finance Bank12 Months8.50%
Equitas Small Finance Bank 12 Months8.50%
North East Small Finance Bank 12 Months8.50%
Ujjivan Small Finance Bank 12 Months8.30%
Indusind Bank12 Months8.00%
Rbl Bank 12 Months8.00%
Fincare Small Finance Bank Ltd12 Months8.00%
The Nainital Bank 12 Months7.90%

Senior Citizen FD Interest Rates

Bank NameTenureInterest(p.a.)
Esaf Small Finance Bank 12 Months8.75%
Suryoday Small Finance Bank12 Months8.50%
Utkarsh Small Finance Bank12 Months8.50%
Equitas Small Finance Bank 12 Months8.50%
North East Small Finance Bank 12 Months8.50%
Ujjivan Small Finance Bank 12 Months8.30%
Indusind Bank12 Months8.00%
Rbl Bank 12 Months8.00%
Fincare Small Finance Bank Ltd12 Months8.00%
The Nainital Bank 12 Months7.90%

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