A Portfolio Management Service (PMS) is a specialized investment vehicle where a professional portfolio manager creates and manages a tailored portfolio of stocks, fixed income, and other structured products. Unlike Mutual Funds, where you own "units" of a fund, in a PMS, you own the underlying securities in your own individual Demat account.
It is essentially a "private fund" feel where the manager has the leeway to be more concentrated and aggressive than a typical retail fund.
While the regulatory entry barrier is the most obvious filter, Portfolio Management Services (PMS) are specifically designed for a certain profile of investor. Beyond simply having the capital, a PMS investor usually fits the following criteria:
Due to SEBI regulations, the minimum investment is ₹50 lakh. This makes it a product for investors who have a substantial surplus and for whom this amount represents only a portion of their total investable wealth, rather than their entire life savings.
Mutual Funds are often "closet indexers," meaning they stay close to the benchmark to avoid huge losses. PMS managers, however, run concentrated portfolios (often just 15–25 stocks). This is for the investor who is willing to move away from the "safety" of a broad index in hopes of significantly higher returns.
In a Mutual Fund, you own units of a pool. In a PMS, you own the actual shares in your own Demat account. This is ideal for investors who:
Disclaimer : Past performance of Portfolio Managers/Investment Approaches, including model portfolios, is not indicative of future results and has been obtained from public sources. RR Finance and its representatives make no representation or warranty, express or implied, as to the accuracy, completeness, or reliability of such information. Investors are requested to carry out their own independent due diligence and consult their financial advisors before making any investment decisions. Investments are subject to market risks. Read all scheme related documents carefully.
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