What is PMS (Portfolio Management Services)?
PMS is a SEBI-regulated investment service where professional portfolio managers invest in equities, fixed income, and other securities on behalf of clients. Unlike mutual funds, PMS offers personalised, customised portfolios with direct stock ownership in the client's own demat account. Minimum investment is ₹50 Lakhs as per SEBI mandate.
- Direct Ownership: Stocks held in your own demat account — not a pooled fund
- Personalised Strategy: Portfolio tailored to your risk profile and goals
- Full Transparency: Real-time access to all transactions and holdings
- Expert Management: Managed by SEBI-registered portfolio managers
- Higher Entry Bar: ₹50L minimum ensures institutional-quality attention
PMS vs. Mutual Funds
Key differences that make PMS suitable for HNI investors:
- Min. Investment: ₹50 Lakhs (vs ₹500 for MFs)
- Stock Ownership: You own individual stocks directly (vs. units in MF)
- Customisation: Portfolio can be tailored; MFs are standardised
- Concentration: 15–25 stocks vs. 40–80 in diversified MFs
- Fees: Performance-linked fees possible (illegal for MFs)
- Tax Efficiency: Direct stock holding gives better tax optimisation