What is Portfolio Management Services in India: A Guide

Understanding Portfolio Management Services (PMS)

Portfolio Management Services (PMS) in India are investment services offered by professional portfolio managers to help individuals manage their equity investments. Unlike mutual funds, where funds from many investors are pooled, PMS offers tailored solutions to meet individual financial goals. These services are ideal for high-net-worth individuals (HNIs) seeking personalized attention and a more active approach to wealth creation.

A PMS Manager in India typically crafts a customized portfolio based on the investor’s risk profile, investment horizon, and financial objectives. The goal is to ensure that each client gets a portfolio aligned with their specific needs rather than a one-size-fits-all solution.

Types of PMS in India

There are mainly two types of PMS offered in India:

• Discretionary PMS: The portfolio manager has full authority to make investment decisions on behalf of the client.

• Non-Discretionary PMS: The manager suggests investment ideas, but the final decision remains with the client.

  
  

Each type has its advantages, depending on how much control or involvement an investor desires.

Benefits of PMS in India

PMS offers several benefits, especially for HNIs who require a more hands-on approach:

• Customization: Portfolios are built around personal financial goals and risk appetite.

• Transparency: Investors receive regular reports and updates on portfolio performance.

• Expertise: Managed by experienced professionals PMS Manager who conduct in-depth market research and analysis.

• Flexibility: Investors can choose between equity, fixed income, structured products, and more.

  
  

These advantages make PMS a preferred option for those looking for a more tailored investment strategy.

Who Should Invest in PMS?

Portfolio Management Services are best suited for investors who:

• Have a higher investment capacity (usually above ₹50 lakhs, as per SEBI guidelines).

• Prefer a personalized approach to wealth management.

• Seek long-term capital appreciation through expert advice.

• want to delegate portfolio decisions to seasoned professionals.

  
  

Regulatory Framework

PMS in India is regulated by the Securities and Exchange Board of India (SEBI). This ensures investor protection, transparency, and ethical practices. All registered PMS providers must adhere to SEBI’s compliance and reporting norms, adding another layer of trust and safety for investors.

Final Thoughts

Portfolio Management Services in India offer a dynamic and personalized alternative to conventional investment options. Backed by professional expertise and regulated by SEBI, PMS is well-suited for HNIs looking for structured and performance-driven wealth management. Whether you're a business owner, professional, or someone looking to grow wealth over time, PMS can be a reliable solution when managed by the right expert.

Always choose a PMS provider like Aequitas with a transparent track record, aligned interests, and a deep understanding of the markets.

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