For eligible investors
Portfolio Management Services, clearly explained.
A professionally managed portfolio held directly in your name, for investors who meet the eligibility requirements and want a more concentrated, individual approach.
PMS is available only to investors who meet the minimum investment requirement prescribed by SEBI (currently ₹50 lakh). Please confirm the current regulatory threshold before investing.
01
What it is
Portfolio Management Services (PMS) are offered by SEBI-registered portfolio managers who manage a portfolio of securities on your behalf.
Unlike a mutual fund, where you own units of a pooled fund, a PMS portfolio is held in your own demat account. You can see each individual stock or security you own.
Portfolio managers typically follow a defined strategy (for example, a particular investment style or market-capitalisation focus) and may run more concentrated portfolios than mutual funds.
- Discretionary PMS
- The portfolio manager makes investment decisions on your behalf within the agreed strategy.
- Non-discretionary PMS
- The portfolio manager advises, but you approve decisions before they are executed.
- Fee structures
- May include fixed management fees, performance-linked fees or a combination. Understanding them is important.
02
Who it may be suitable for
- Investors who meet the regulatory minimum investment
- Those comfortable with higher concentration and potentially higher volatility
- Investors with a long time horizon who want direct ownership of securities
- Those who want a more individual approach than a pooled fund
Suitability depends on your individual circumstances. This list is general, not a recommendation.
03
How it works
- 01
Check eligibility
Confirm that PMS suits your financial position, risk appetite and time horizon.
- 02
Understand strategies
We help you compare available portfolio manager strategies, their approach and costs.
- 03
Documentation
Agreement with the portfolio manager, KYC and account set-up.
- 04
Ongoing reporting
Regular statements from the portfolio manager, with our support for periodic reviews.
04
What we help with
- Understanding how PMS differs from mutual funds
- Comparing strategies, fee structures and portfolio manager approaches
- Documentation and onboarding with the portfolio manager
- Periodic review conversations
05
Key considerations
- PMS portfolios can be concentrated and may be more volatile than diversified mutual funds.
- Performance is not guaranteed. Your capital is at risk.
- Fee structures vary and can materially affect your net outcome, so read the disclosure document carefully.
- Taxation applies at the level of each transaction in your portfolio.
- Eligibility and suitability requirements apply.
06
Frequently asked questions
What is PMS?
Portfolio Management Services are investment services offered by SEBI-registered portfolio managers, who manage a portfolio of securities held in your name according to a defined strategy.
Who can invest in PMS?
PMS is open to investors who meet the minimum investment amount prescribed by SEBI (currently ₹50 lakh) and for whom it is suitable. Suitability depends on your overall finances, risk tolerance and time horizon, not only the ability to meet the minimum.
How is PMS different from mutual funds?
In a mutual fund you own units of a pooled fund; in PMS you directly own the securities in your demat account. PMS portfolios are usually more concentrated, have higher minimums, different fee structures and different tax treatment. Mutual funds are more tightly regulated in terms of diversification and costs.
Are PMS returns guaranteed?
No. PMS investments are market-linked and carry risk, including the risk of loss of capital.
Talk to us about PMS.
A relaxed, no-obligation discussion about where you are and where you’d like to be. Bring your questions. We’ll bring clarity.