What is PMS?

Think of PMS as hiring a personal chef. Instead of ordering from a fixed menu (like a mutual fund), you share your preferences, health goals, and tastes, and the chef curates meals tailored precisely to you.

This analogy reflects:

Customisation → meals designed to your taste.

Expert management → professional chef (portfolio manager).

Diverse options → variety of cuisines (asset classes).

Goal alignment → healthy diet plan (investment strategy).

The Right Fit for PMS

High Networth Individuals (HNIs)

Investors seeking customised portfolios rather than pooled options

Individuals with medium to high risk appetite

Investors who prefer transparency in holdings and flexibility

Minimum investment: SEBI mandates a minimum of ₹50 lakh for PMS accounts.

Curated PMS Strategies

Thematic PMS

Thematic PMS invests in companies aligned with specific themes such as technology, renewable energy, or consumption trends. It allows investors to capitalise on long-term structural shifts in the economy, targeting higher growth potential within chosen sectors.

Real Estate Fund

Focused on residential, commercial, or infrastructure projects, these funds allow investors to participate in real estate development without directly owning property.

Angel Fund

A category of venture capital, angel funds pool money from investors to back promising startups at a very early stage, often before traditional funding sources are available.

Private Credit Fund

These funds lend to businesses or projects outside the conventional banking system, providing investors with fixed-income opportunities and borrowers with flexible financing.

Private Equity Fund

Private equity funds acquire stakes in established companies, aiming to improve operations, scale growth, and eventually exit with substantial returns.

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The PMS Edge

Customised Portfolio Construction

Every PMS portfolio is crafted to reflect the investor’s unique objectives, financial goals, and risk appetite. This personalised approach ensures the investment strategy is aligned with the client’s long-term preferences, creating a portfolio tailored to individual needs.

Transparency of Holdings

PMS offers complete visibility into the securities owned by the investor. Unlike mutual funds, investors can track the exact stocks or instruments held in their account, enabling better understanding, accountability, and monitoring of their wealth-building journey.

Direct Ownership of Securities

Under PMS, investments are held in the client’s personal demat account. This provides direct ownership, greater flexibility in decision-making, and clear control over assets, unlike pooled investment vehicles where investors only hold units.

Active Professional Management

Portfolios are managed by skilled fund managers who actively monitor markets, identify opportunities, and rebalance holdings. Their expertise helps optimise risk-adjusted returns, enabling investors to benefit from dynamic market shifts and informed, research-driven decisions.

Flexibility in Strategy

PMS allows investors to choose strategies suited to their goals—whether growth-oriented, value-driven, sector-specific, or thematic. This flexibility ensures investment plans are aligned with personal preferences and evolving financial aspirations, offering customisation beyond standard products.

Potential for Higher Returns

By focusing on concentrated, well-researched portfolios and actively managing allocations, PMS can potentially outperform conventional pooled vehicles. The approach targets superior long-term wealth creation while balancing risks to enhance overall returns for discerning investors.

Regulated by SEBI

All PMS providers are registered with SEBI and operate under strict regulatory frameworks. This ensures compliance, transparency, and investor protection, giving clients confidence that their investments are handled responsibly and ethically by professionals.

Insights & Clarifications

What is PMS?

Portfolio Management Services (PMS) are customised investment solutions where professional managers create and manage portfolios of stocks, bonds, or other securities on behalf of clients, tailored to their financial goals, risk profile, and investment preferences.

What is the difference between PMS and Mutual Funds?

PMS provides individualised portfolios where investors directly own securities in their demat accounts, ensuring transparency and control. In contrast, mutual funds pool investors’ money, and investors own units, not the underlying securities, offering less customisation.

How is PMS taxed?

Taxation in PMS is the responsibility of the investor, as securities are directly held in their name. Gains are taxed as per applicable capital gains rules, and dividends are taxable in the investor’s hands.

Are PMS risky?

Yes, PMS involves market-linked securities and carries higher risks compared to mutual funds. However, risks are managed by professional managers through research, diversification, and strategy alignment with the client’s goals and risk tolerance.

What fees does the portfolio manager charge?

Portfolio managers typically charge a fixed management fee, performance-based fee, or a combination of both. Fees vary by provider and strategy and are disclosed upfront to ensure transparency and investor awareness.

How does PMS work?

After onboarding, the investor’s funds are deployed into a customized portfolio based on goals and risk profile. The portfolio manager actively manages investments, provides regular performance reports, and rebalances holdings to optimize returns while managing risks.