NISM Certifications · NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors · Role of Portfolio Managers
Which of the following is a feature of a PMS client's holdings compared with a mutual fund investor's holdings?
In a PMS the securities are held in the client's own name in a separate individual account, unlike a mutual fund where money is pooled into units. This allows each portfolio to be customised and gives the client full visibility of every holding.
- ASecurities are held in the client's own name in an individual demat accountCorrect
- BUnits are pooled and held in the fund's name
- CThe investor cannot see individual securities
- DNAV is declared daily for every client
Explanation
In a PMS the securities are held in the individual client's own account, so each portfolio can differ and the client can see every holding. A mutual fund pools money into units of a scheme, with a common NAV. The other options describe mutual funds.
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