Portfolio Management Services (PMS)
PMS provides personalized portfolios managed by professionals in your own demat/segregated account.
Minimum is typically ₹50 lakh; fees include management and performance. Result dispersion across PMS managers is wide.
Use PMS if you want concentrated, actively‑managed exposure and can evaluate strategy/risks; compare long‑term after‑fee performance.
₹50L minimumActive managementFee impact
Ways to Invest
- Open a PMS account with a SEBI‑registered PMS; complete KYC and agreements.
- Choose style: Large‑cap, Multi‑cap, Small/Mid, Value, Growth, Quant; review drawdowns & turnover.
- Understand fee model (mgmt + performance with hurdle/high‑watermark) and reporting cadence.
What to Evaluate
- 3–5 year after‑fee performance vs benchmarks; downside capture & volatility.
- Portfolio construction, capacity, team stability, and compliance.
- Operational setup: custodian, brokerage, audit, disclosure quality.
Why PMS Investments Are High Risk
High fees, high volatility, and no guarantee of beating mutual funds
- High Minimum Ticket: SEBI minimum is ₹50 Lakhs — unsuitable for most investors.
- Returns Not Guaranteed: Many PMS schemes underperform benchmarks & index funds.
- High Fees: Typical 2% management fee + 10–20% performance fee (above hurdle).
- Concentrated Portfolios: 12-25 stocks → higher drawdowns vs diversified mutual funds.
- Reporting Lag: NAVs not updated daily; monthly or quarterly disclosure only.
- Tax Inefficiency: Every buy/sell triggers real-time capital gains; no pass-through like MFs.
- Style Drift Risk: Manager can change mandate, sector weightings, exposure levels mid-way.
- Manager Dependency: PMS success ≠ repeatable; performance varies widely across cycles.
- Liquidity: Redemptions take T+15 to T+30 days in some PMS structures.
Bottom line: PMS is meant for HNIs who understand equity risk, can tolerate deep drawdowns,
and are comfortable with higher costs and low liquidity. It is not a substitute for equity mutual funds or index funds.
Real PMS Examples (India)
Well-known SEBI-registered PMS providers & strategies
| PMS Provider | Strategy Name | Theme / Style | Minimum Investment |
|---|---|---|---|
| Marcellus Investment Managers | Consistent Compounders PMS | High-quality concentrated equity | ₹50 Lakhs |
| Motilal Oswal PMS | NCP / Value PMS / Focused 25 | Large & multi-cap focused portfolio | ₹50 Lakhs |
| ASK Investment Managers | India Select / Growth PMS | Quality + growth with sector filters | ₹50 Lakhs |
| ICICI Prudential PMS | Large Cap / Flexicap PMS | Disciplined quantitative + research | ₹50 Lakhs |
| Unifi Capital | Blended – Green / APJ etc. | Special situation / thematic | ₹50 Lakhs |
| Carnelian PMS | Shift / Magic / Turning Point | Growth + behavioural investing mix | ₹50 Lakhs |
Education only; not investment advice. Markets carry risk; do independent due diligence.