SEBI-Regulated · Minimum ₹50 Lakh
Portfolio Management Service (PMS)
PMS is a bespoke stock portfolio managed by a SEBI-registered portfolio manager on your behalf. Unlike a mutual fund — where thousands of investors pool money — in PMS, you own the individual stocks directly in your demat account. Your portfolio can be tailored to your goals, tax situation, and risk appetite.
PMS at a glance
- SEBI minimum
- ₹50 lakh (₹50,00,000) per SEBI (Portfolio Managers) Regulations 2020
- Regulator
- Securities and Exchange Board of India (SEBI)
- What you own
- Individual stocks and securities — held in your own demat account
- Fee model
- Fixed fee or profit-sharing (performance fee); typically 1–2% p.a. + profit share
- Taxation
- Each trade is taxed individually — LTCG (12.5% after 12 months above ₹1.25L) and STCG (20%) apply per stock sold
- Liquidity
- Generally liquid; exit subject to manager's terms (often 30-day notice)
PMS vs Mutual Fund — key differences
| Dimension | Mutual Fund | PMS |
|---|---|---|
| Minimum investment | ₹500 (SIP) or ₹5,000 lump sum | ₹50 lakh (SEBI mandate) |
| Ownership | Units in a pooled fund | Direct stock ownership in your demat |
| Customisation | None — same portfolio for all investors | Can be tailored to your situation |
| Taxation | Taxed only on redemption | Taxed on each trade inside the portfolio |
| Transparency | Monthly portfolio disclosure | Real-time — you see every stock you hold |
| Regulation | SEBI (MF) Regulations | SEBI (Portfolio Managers) Regulations 2020 |
PMS vs SIF — which is right for ₹50 lakh?
If your corpus has just crossed ₹50 lakh, you have two SEBI-regulated options beyond plain mutual funds: PMS and the newer Specialised Investment Fund (SIF).
- PMS is best when you want a bespoke long-only stock portfolio managed actively, with full visibility into every holding, and you are comfortable with individual-stock tax events.
- SIF (minimum ₹10 lakh) gives you long-short strategies with mutual fund taxation — simpler from a tax filing perspective, and available at a lower corpus.
The two are not mutually exclusive. A ₹1 crore corpus might allocate 60% to SIF (for the MF tax wrapper on long-short) and 40% to a PMS (for tailored long-only equity exposure).
Who should consider PMS?
- Investors with ₹50 lakh or more in investible surplus (beyond emergency fund and home loan).
- Those who want a tailored portfolio — for example, excluding a sector where they already have employer stock exposure.
- Investors comfortable with the complexity of individual-stock taxation across multiple trades per year.
- Those who have already maximised MF-based tax-saving options (80C, ELSS) and want a different kind of active management.
Coming soon
- Top PMS managers by strategy — returns, drawdown, and fee analysis
- How to evaluate a PMS offer document
- PMS exit strategy and tax planning
- PMS vs AIF — when to step up
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