Do you know that PMS offers SIP STP SWP SWITCH TOPUP?

We are surprised to note many are not aware that PMS provides all the flexible options available in the Mutual fund industry. Yes, many PMS Companies provide SIP/STP/SWP/SWITCH/TOP UP options .....

03 Apr 2020

Do you know that PMS offers SIP / STP / SWP / SWITCH / TOPUP?

Wealth building process is more important to humans than the actual wealth itself. If the process is gruesome and uncomfortable, the choice of the Majority would be to maintain status quo. The choices, flexibility and options available in the financial products are rarely exercised; however, these tools are important psychological support provided to make the investors feel comfortable and safe. It is rather reassuring to learn all the options and tools available to the contemporary financial products are indeed provided in the instruments/strategy where we have invested.

Though every PMS Manager is fully competent to provide the best risk adjusted returns on your investment, it is comforting to note the investor is provided with many tools. We are surprised to note many are not aware that PMS provides all the flexible options available in the Mutual fund industry. Yes, many PMS Companies provide SIP/STP/SWP/SWITCH/TOPUP of these options.

The Salient features of the Flexible Options in the PMS:

The strict compliance of the SEBI regulation is practiced by all the PMS. While, we discuss the features of SIP/STP/SWP/SWITCH/TOPUP, investors are advised to note the terms & conditions stipulated.

  • Minimum investment threshold in PMS is Rs. 50,00,000/- (SEBI – regulation)
  • SIP option is provided, when an investor plans to invest more than the minimum threshold. There is also minimum ticket size for each installment. The size varies from one PMS to another.
  • STP option collects minimum threshold from the investor, the initial holding and the transfer methods vary as stipulated by each PMS.
  • SWP - Withdrawals are subject to maintaining the minimum threshold, minimum withdrawal amount varies and stipulated by each PMS separately.
  • SWITCH - Switch is allowed only in the strategies within the PMS Company.
  • TOP-UP – The terminology itself is clear that the investment of funds MORE than the minimum threshold. Minimum top-up value varies between strategies and PMS.

What is SIP (Systematic Investment Plan)?

We cannot time the market. Hence, it is prudent to reduce the quantum of purchase when the price is higher and increase the quantum to benefit more when the price is lower. We follow this principle, in our day-to-day life while buying the vegetables (especially onions). The principle is applied in investment. This method is called the rupee-cost-average.

Rupee cost average is automatically achieved by investing same amount at periodic intervals for a stipulated period. This is termed as Systematic Investment Plan (SIP).

SIP in the PMS

The SIP is permitted only as additional investment (50 Lakh already invested in the portfolio). SIP is accepted @ 2 Lakhs (minimum) per month (there are PMS with 1 Lakh per month as minimum).

What is STP (Systematic Transfer Plan)?

When you are concerned about markets, you may opt for STP option. Your investment is initially invested in the Liquid portfolio, and then a portion of the corpus is transferred periodically to the equity portfolio.

STP modus operandi in the PMS

There are marginal variations in the plans offered by different PMS Managers, the salient features and variations are:

PMS Company “A” – STP features

  • The investor makes his full payment as one lump-sum to the PMS.
  • Minimum of Rs. 5,00,00/- is invested in the equity strategy on the start date of the PMS portfolio.
  • Balance amount is kept in the Liquid portfolio of the PMS.
  • This balance is equated and invested periodically into the equity portfolio.

PMS Company “B” – STP features

  • The investor makes his full payment as one lump-sum to the PMS.
  • 20 % of the capital is invested in equity on the date of starting the PMS
  • Balance, is equated as 4 – 20%, tranches, and invested in the next 4 months

PMS Company “C” – STP features

  • Minimum threshold of 50 Lakhs is invested in the Liquid portfolio.
  • Minimum of 2 Lakh is transferred from this Liquid portfolio, every month to the equity portfolio, on a specific date.

Additional investment/TOP UP

Additional investments are permitted by the PMS
While some PMS accepts 5 Lakhs as minimum TOP UP, others accept even 1 Lakh.

Diversification into various portfolios of the same PMS

The investor may opt to invest his corpus spread into various portfolio strategies of the PMS, subject to the provision that the minimum (total of all portfolio strategies) in the same PMS is 50 Lakhs (as per SEBI regulation). Minimum corpus in each strategy stipulated varies from PMS to PMS.


Switch is the option offered to the investor to transfer the funds from one strategy to another of the same PMS, either partly or fully. (Subject to minimum switch value stipulated) Many PMS Managers simultaneously operate number of portfolio-strategies. While each strategy genuinely adheres eternally to the strategy devised, investors may feel another strategy of the same PMS is better suited for him. In order to provide flexibility to the investor, the switch option is offered by majority of the PMS. Switch option also caters to another principle of safer-strategy. We cannot time the market to invest; it is equally true, that we cannot time the market to exit too. We can switch to Liquid strategies in phased manner to exit.

Systematic Withdrawal Plan (SWP)?

After staying invested for few years, the portfolios grow to bigger corpus. An investor may not need the entire corpus, can withdraw partially subject to maintaining the minimum threshold.

There is “NO-Lock-in” period for the investment in the PMS; hence the investor has full freedom to exit anytime. However, PMS companies charge exit load to discourage short term investors. However, after certain period of holding the portfolio, they allow withdrawal without exit load. The period varies as per the strategies and PMS Company.


With all these tools under our wraps, we are sure to trot our Wealth-building journey serenely.
We, at PMS-bazaar, are fully conversant with all the variations in the market. We remain current and updated on the latest changes in all the PMS. We are professionally competent to match the right PMS for your unique choice.

For more details, please feel free to contact us at

Recent Blogs

Shankar Sharma speaks on What Asset Allocation is and what it is not

The key to successful investing, over the long term, is to have every major Asset Class in your consideration set: The word Asset Allocation is bandied around rather casually these days. Hence it is important to understand what Asset Allocation is not. Understand from Mr. Shankar Sharma, Vice Chairman & Jt. Managing Director, First Global.

Women Portfolio Managers in PMS

The tradition portrays women as better money managers domestically. Wealth derives from rather Goddesses than Gods as per the belief of many ancient cultures and religions.

Sadhguru of Indian stocks has a simple strategy to keep your cool in these volatile times

Get inspired from Mr. Raamdeo Agrawal's candid speech with optimism on Indian Equity Markets & GDP growth potential of 9% to 10% post Covid-19 – Portfolio Management Services Webinar on – “Economy and Market Outlook & the Way Forward”

Alternative Investment Funds AIF Category 1 The New Age of Investing

AIF CATEGORY 1 - The New Age of Investing. What worked so far doesn’t work anymore. Have you realigned your portfolio to this new reality yet? India has changed and continues to change at a rapid clip. Businesses, and hence, your portfolio, has to keep pace. A 10% to 20% exposure of your portfolio to AIF Category 1 funds or directly to startups is ideal – Gain more knowledge from the exclusive article by Mr. Rajesh Sehgal, Managing Partner, Equanimity Investments

PMSes deliver up to 26 percent in April but find out how many beat benchmarks

After a terrible market in March, April saw PMSes rise from their ashes like a phoenix. The harder a portfolio was in March, the rebound was stronger. Portfolio managers delivered up to 26.1% return in April 2020. Find out how many beat the benchmark ....

Potential of Indian Real Estate through CAT II AIF Investments

AIFs Neither Face The ALM Mismatch Nor Are Impacted By The Credit Squeeze. Hence, In The Current Scenario, Where Fresh Disbursements Have Been Tough For NBFCs, AIFs Have Not Been Impacted. The Current Crisis Presents A Great Opportunity For AIFs Who Could Partner With Large Developers At Really Attractive Valuations/Prices. Gain more knowledge from the exclusive article by Mr. Sharad Mittal, CEO, Motilal Oswal Real Estate

5 Attributes you should look for to select your PMS

Experience in good & bad cycles, adaptable to changing global orders with ability to innovate, technological adherence, process mapping & implementation and the ability to look beyond the temporary and short-term volatility are the 5 Attributes to select your PMS.

Impact of COVID on the Economy Markets and Marcellus Portfolio PMS

Ascertain whether the foundations of Indian economic recovery are in place? Is India on the verge of the 5th Economic Boom? Why it makes no sense to time the entry/exit of CCP?. Here is an Excerpts from the Exclusive Webinar on " Impact of COVID on the Economy, Markets, and Marcellus PMS Portfolio" by Mr. Saurabh Mukherjea & Mr. Rakshit Ranjan, Marcellus Investment Managers - PMS

Copyright © 2020 PMS Bazaar. All Rights Reserved.