A discretionary account is an investment account in which the account holder grants the portfolio manager or investment advisor full authority to make investment decisions — including buying, selling, and rebalancing securities — on the client's behalf, without requiring the client's prior approval for each individual transaction. The manager exercises discretion based on the client's pre-agreed investment mandate, risk profile, and financial objectives. Discretionary accounts are the standard structure for Portfolio Management Services (PMS) in India — regulated by SEBI — where SEBI-registered portfolio managers actively manage client funds above the minimum threshold (₹50 lakhs as of current regulations). The opposite of a discretionary account is an advisory or non-discretionary account, where the advisor recommends actions but the client retains final decision-making authority. For high-net-worth investors using Ventura Securities' PMS or wealth management services, a discretionary account structure provides professional, active management while delegating execution responsibility — making the selection of a trustworthy, SEBI-registered manager with a transparent track record critically important.
