Economics · Portfolio Management Services
Ramesh, a high-net-worth individual, approaches a portfolio manager for discretionary PMS. The manager prepares a risk profile, designs an asset allocation, and begins execution. Which of the following statements is NOT correct regarding this scenario?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Rebalancing is an integral part of the PMS process to maintain the desired asset allocation over time.
- 2Regular reporting to the client is mandatory as per the guidelines established by SEBI.
- 3Asset allocation in PMS is not personalized and strictly follows standard mutual fund allocation rules.✓
- 4Discretionary PMS allows the portfolio manager to make all individual investment decisions independently.
Correct answer
Asset allocation in PMS is not personalized and strictly follows standard mutual fund allocation rules.
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