Customized portfolio — investments are tailored to the investor's risk appetite, financial goals and investment horizon.
Professional management — experienced fund managers make the investment decisions and actively monitor the portfolio.
Direct ownership of securities — unlike mutual funds, investors directly own the stocks, bonds and other securities in their PMS account.
Personalized investment strategy — managers can run specific mandates: growth, value, dividend or sector-focused investing.
Transparency — full visibility into every transaction, holding and the portfolio's performance.
What it means
Steady structural climb — AUM ₹20.5 → ₹42.36 L Cr over five years (~16% CAGR), up ~12% YoY.
Read the headline with a lens — ₹42.36 L Cr includes ₹30.65 L Cr of EPFO/PF money; ex-EPFO PMS AUM is a far smaller ₹8.63 L Cr — the real discretionary HNI pool.
Due diligence over averages — with dispersion this wide, track record, drawdown and fee structure matter more than the category mean.
Key Considerations Before Investing
Fee structure — typically a fixed fee (~1.5–2.5% p.a.) and/or a performance fee (~10–20% over a hurdle), often with a high-water mark; always compare returns net of fees.
Taxation — you directly own the securities, so gains are taxed in your hands on each transaction (STCG / LTCG); a high-churn PMS can carry more tax drag than a mutual fund.
Liquidity — open-ended with no hard lock-in, but early-exit loads are common and redemptions settle over several working days, not instantly.
Concentration risk — 15–25 stocks means higher tracking error and wider outcomes versus the benchmark, in both directions.
Suitability — a ₹50 L+ vehicle for HNI / UHNI who want customization and direct ownership and can sit through concentrated drawdowns.
Operational load — richer, transaction-level reporting, but the investor carries the tax-reporting and reconciliation effort a pooled fund handles for you.
05 · PMS INDUSTRY