What is Portfolio Management Services (PMS)?

Portfolio Management Services (PMS) is a professional investment management service offered to high net worth individuals (HNIs). It involves the management of securities in the client's portfolio by a professional portfolio manager who makes investment decisions based on the client's financial goals and risk tolerance.

Minimum Investment

As per SEBI regulations, the minimum investment amount for PMS in India is ₹50 lakhs.

Professional Management

Your investments are managed by qualified professionals with expertise in financial markets.

Customization

Unlike mutual funds, PMS offers personalized investment strategies tailored to your specific needs.

How PMS Works

Portfolio Management Services operate on a well-structured process that ensures your investments are handled professionally while aligning with your financial objectives.

1

Client Onboarding & KYC

Complete documentation and KYC requirements as mandated by SEBI. A portfolio manager understands your financial goals, risk appetite, and investment horizon.

2

Strategy Formulation

Based on your requirements, the portfolio manager creates a customized investment strategy focusing on asset allocation and security selection.

3

Portfolio Construction

Your funds are invested across various assets as per the agreed strategy. Each client has a separate demat account where securities are held.

4

Active Management

Portfolio managers continuously monitor market conditions and make necessary adjustments to optimize returns while managing risks.

5

Reporting & Review

Regular performance reports are provided, showing portfolio composition, transactions, and returns. Periodic reviews ensure alignment with changing financial goals.

About PMS

Portfolio Management Services in India are regulated by the Securities and Exchange Board of India (SEBI) to ensure investor protection and market integrity.

Regulatory Framework

SEBI regulates all PMS providers in India, ensuring transparency and investor protection through stringent guidelines.

Fee Structure

PMS typically has two fee components: a fixed management fee and a performance-based fee.

Types of PMS

Discretionary (manager makes all decisions), Non-discretionary (client approval needed), and Advisory (recommendations only) services are available.

Advantages of PMS

Customization

Tailored investment approach based on individual risk profile and financial goals.

Transparency

Direct ownership of securities with clear visibility of all portfolio holdings and transactions.

Expertise

Access to professional fund managers with specialized knowledge and research capabilities.

Flexibility

Ability to customize entry / exit from specific securities and tax planning opportunities.

Who Should Invest in PMS?

Portfolio Management Services are best suited for investors with specific characteristics and requirements:

High Net Worth Individuals

Investors who can comfortably invest the minimum amount of ₹50 lakhs.

Long-Term Horizon

Individuals with an investment horizon of at least 3-5 years to ride out market fluctuations.

Strategy Seekers

Those looking for specialized investment strategies beyond standard mutual fund offerings.

Relationship Value

Investors who value personalized attention and direct access to portfolio managers.