The two types of portfolio management services are available to the investors:

1. The Discretionary portfolio management services (DPMS):

■ In this type of services, the client parts with his money in favor of manager, who in return, handles all the paper work, makes all the decisions and gives a good return on the investment and for this he charges a certain fees.

■ In this discretionary PMS, to maximize the yield, almost all portfolio managers parks the funds in the money market securities such as overnight market, 182 days treasury bills and 90 days commercial bills.

■ Normally, return on such investment varies from 14 to 18 per cent, depending on the call money rates prevailing at the time of investment.

2. The Non-discretionary portfolio management services:
■ The manager function as a counselor, but the investor is free to accept or reject the manager’s advice; the manager for a services charge also undertakes the paper work.

■ The manager concentrates on stock market instruments with a portfolio tailor made to the risk taking ability of the investor.