Portfolio management services (PMS)

[aim-high]

Recently came to know that in India, several banks offer PMS. this is not the same as investing in mutual funds based on my understanding. I live in the US. which bank in US offers such a service and any pros or cons in using this service to invest money ?

[disneysteve]

What does PMS consist of? What does it cost? What do they do for you that you can’t do cheaper on your own?

[disneysteve]

Generally speaking paying someone else to manage your money is a huge waste. It does nothing to improve your returns. They typically build an overly complex portfolio with tons of fees. Think 20-30 funds. And they charge a management fee on top of all of that. So you lose 1-2% off the top.

[james.hendrickson]

Generally speaking paying someone else to manage your money is a huge waste. It does nothing to improve your returns. They typically build an overly complex portfolio with tons of fees. Think 20-30 funds. And they charge a management fee on top of all of that. So you lose 1-2% off the top.

Disneysteve is unfortunately correct.

Some money managers are very good - most however don't add enough value to justify the fee structure they charge for managing your money.

[aim-high]

Just to be clear. I am NOT talking about a portfolio of mutual funds that i have in my account that is managed by a professional.
I am referring to something similar to this https://aifpms.com/portfolio-management-services/

I dont know if such a thing exists in US and which is what I am trying to understand if there is any offerings like the above in US banks.

[disneysteve]

Just to be clear. I am NOT talking about a portfolio of mutual funds that i have in my account that is managed by a professional.
I am referring to something similar to this https://aifpms.com/portfolio-management-services/

I dont know if such a thing exists in US and which is what I am trying to understand if there is any offerings like the above in US banks.

Yes. There are plenty of places that do this. Stay far, far, far away from all of them. They are bad news. They do absolutely nothing for you that you can’t do yourself far cheaper.

[disneysteve]

What is it you are trying to accomplish by hiring a money manager?

[aim-high]

I invest in vanguard mutual funds/etfs etc. I am just trying to diversify my investments by using PMS kind of service. I am assuming PMS service is unlike mutual funds. So basically trying to find another vehicle to invest.

[disneysteve]

I invest in vanguard mutual funds/etfs etc. I am just trying to diversify my investments by using PMS kind of service. I am assuming PMS service is unlike mutual funds. So basically trying to find another vehicle to invest.

Nope. Read the link you posted. You’re paying them to manage your stocks, bonds, cash, and mutual funds. You get absolutely nothing for those exorbitant fees other than sub par returns.

Do it yourself.