A PAMM Portfolio is a collection of PAMM Accounts combined into a single entity. This type of investment allows the investor to diversify their risk as they can select PAMM Accounts with the optimal balance of potential risk and reward, as well as the amount to invest.
The Basic Idea of PAMM Portfolios
The manager creates a portfolio which includes of a number of PAMM Accounts, and invests their own money serving as a guarantee that they will oversee the portfolio prudently. The manager can change the constituent PAMM Accounts which make up the portfolio as well as the share of these accounts in the portfolio by using his own capital and funds provided by investors.
The investor monitors the effectiveness of the manager's portfolio from the site, and then invests in the PAMM Portfolio which they most like the look of.
Trading is undertaken in the constituent PAMM Accounts of the PAMM Portfolio. Learn more about PAMM Accounts in the section "How the PAMM Account Works".
The profit and loss is divided proportionally between all the participants in the PAMM Portfolio. The manager receives compensation as a share of the profit from investors.
How PAMM Portfolios Operate
The manager creates a PAMM Portfolio, investing his own fixed capital, and sets the terms and conditions for the investors.