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PMS business grows 118% to Rs. 5.14 trillion in April 2012

The average value of a client’s portfolio grew 120% to Rs. 63 million in April 2012 against Rs. 29 million in April 2011

May 24, 2012 1:54 IST | India Infoline News Service
According to the SEBI (Securities and Exchange of India) data, portfolio management services (PMS) business grew 118% year-on-year to Rs. 5.14 trillion in April 2012. However, the business lost around 1% of its total clients who had taken PMS in April 2011.
A PMS account is an investment portfolio in stocks, debt and fixed income products managed by a professional money manager that can potentially be tailored to meet specific investment objectives. The advisor receives a mutually agreed fee in return for his advice. 
The average value of a client’s portfolio grew 120% to Rs. 63 million in April 2012 against Rs. 29 million in April 2011. The number of clients in the discretionary PMS business declined 7% to 64,688 in April 2012 compared to 69,476 in April 2011. However, its portfolio value zoomed 207% to Rs. 4.26 trillion. The average value of the client’s portfolio jumped 230% to Rs. 66 million.
In discretionary PMS, the investment is at discretion of the fund manager and client has no intervention in the investment process.
Number of non-discretionary PMS clients increased 42% to 5,954 and the portfolio value rose 85% to Rs. 188.59 billion. The ticket size increased 30% to Rs. 32 million.
Under non-discretionary PMS, the portfolio manager only suggests the investment ideas. The choice as well as the timings of the investment decisions rest solely with the investor. However the execution of the trade is done by the portfolio manager.
The PMS advisory business lost 21% portfolio value in one year to Rs. 692.49 billion.
Client additions rose 28% to 10,830. Hence the ticket size/client went down to Rs. 64 million, down 38%.

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