There are two types of Portfolio Management which are desribed  below:

1. The discretionary portfolio management service (DPMS): In this type, the client gives his money for investment to the manager, who handles the paperwork. makes all investment decisions and gives good return to the investors and charges a fee for the service rebdered.

2. The non-discretionary portfolio management service: In this scheme, the manager functions as a counsellor, but the investor is free to accept or reject the manager’s advise; the paperwork is also undertaken by the manager for a service charge. The manager concentrates on stock market instruments with a portfolio tailor-made to the risk taking ability of the investor.