Portfolio Management Services (PMS)

A Comprehensive Guide | PMS Bazaar

What is Portfolio Management Services (PMS)?

Portfolio Management Services (PMS) are customized investment solutions typically suited for High-Net-Worth Individuals (HNIs) and seasoned investors.

Unlike mutual funds, PMS offers direct ownership of stocks or bonds through your Demat account, with strategies curated and managed by SEBI-registered professionals.

PMS helps you build long-term wealth through expert-driven decisions based on your risk appetite, and investment horizon.

PMS Illustration
Personalized
Strategy
Transparency
& Ownership
Expert
Management
SEBI
Regulated

Why Choose PMS

  • Tailored investment portfolios aligned with your financial goals and risk appetite

  • Expert Portfolio managers ensuring disciplined and data-driven investment decisions

  • Regular performance reviews and portfolio updates to stay on track

  • Diversified asset allocation for balanced risk and consistent returns

  • Flexibility to customize strategies as market conditions evolve

Why Choose PMS

At PMS Bazaar, we guide investors through every step — from strategy selection to ongoing monitoring — with clarity and convenience.

Types of PMS

Discretionary vs Non-Discretionary Vs Advisory

Discretionary PMS

The portfolio manager makes all investment decisions on your behalf based on the agreed strategy and risk profile. Ideal for investors seeking expert-led management.

Non-Discretionary PMS

You remain involved in the decision-making process. The fund manager gives recommendations, but you approve each transaction. Perfect for investors who want control with support.

Advisory PMS

The portfolio manager offers expert investment guidance, while you retain full control over all decisions and execution. Ideal for investors seeking professional insights with independence.

PMS Investment Approach

Choose from top-performing, SEBI-compliant PMS strategies:

Equity PMS

Focus on long-term capital appreciation .

Debt-Oriented PMS

For stable returns & capital preservation

Hybrid PMS

Balanced mix of equity and debt for growth with stability.

Quant AI-Based PMS

Intelligent, data-driven strategies by Algorithmic models free from emotional bias

Mutual Fund – PMS

Professionally managed mutual fund baskets

What You Can
Achieve with PMS

Professional Management:

Access to Expert managed portfolios by seasoned professionals

Risk Diversification:

Exposure across sectors, assets, and styles

Capital Appreciation:

Build wealth over time with a professionally managed portfolio.

How PMS Returns Are Calculated

PMS Returns Calculation

Starting your PMS journey is seamless:

1
Consult & Choose a Strategy

Based on your financial goals

2
Get Personalized Suggestions

Receive curated portfolio suggestions from experts

3
Invest

Minimum ₹50 Lakhs

4
Monitor Portfolio

Get regular reports and expert insights

At PMS Bazaar, we ensure fully guided onboarding and personalized portfolio selection.

PMS Fee Structures

We offer full fee transparency so you know exactly what you're paying for:

1
Management Fee:

Fixed (e.g., 1–2.5% p.a.) or performance-linked. In many PMS offerings, management fees may be negotiable based on portfolio size or investor profile — unlike mutual funds where fees are standard.

2
Performance Fee Models:
  • • High Water Mark: Fee only on gains beyond previous peak
  • • Hurdle Rate: Fee only if returns cross a set threshold (e.g., 10%)
3
Operating Costs:

Capped at 0.5% per year (excluding brokerage)

PMS investments are taxed like direct equity — gains are subject to capital gains tax (short-term or long-term) based on the holding period, unlike mutual funds which have a different tax structure.

How PMS Returns Are Calculated

TWRR
(Time-Weighted Rate of Return):

Evaluates portfolio manager skill by neutralizing cash flows

HPR
(Holding Period Return):

Return over a specific investment period

Gross vs
Net Returns

We disclose both, clearly and consistently

PMS vs Mutual Funds

Feature
PMS (via PMS BAZAAR)
Mutual Funds
Investment Amount
Minimum Investment
(Rs. 50 lakh or more)
Low minimum Investment
(Rs. 100 or more)
Investment
Management
Professional Portfolio
managers
Professional fund managers
Customisation
Highly customised to
individual needs
Standardised investment
strategies
Risk
Moderate to high risk - due to
concentrated portfolios
Moderate risk due to
diversification
Fees
Fixed Fee Variable Fee Profit
Sharing fixed fee, Hybrid fee
Expense Ratio: Up to 2.5%
Depending on the schemes
Taxation
Capital gains tax on individual
stock transactions
Capital gains tax
on redemption
Liquidity
Less liquid compared to
mutual funds
More liquid than PMS
Transparency
Transparent than mutual
funds
Relatively less transparent than
PMS
Suitability
High net worth individuals
seeking personalized
investment solutions
Retail investors seeking
professional management and
diversification
Approach
No pooling of investor funds.
A separate Demat account is
maintained for every client
Investor money is pooled and
then invested as per investment
scheme
Regulatory Framework
SEBI (Portfolio Managers)
Regulations, 2020
SEBI (Portfolio Managers)
Regulations, 2020
Investment option
Direct & Regular
Direct & Regular

PMS Taxation Overview

Feature
PMS (Portfolio Management Services)
Capital Gains
Taxed in the investor’s hands based on individual stock transactions. Short-term (less than 1 year) – 20%, Long-term (more than 1 year) – 12.5% on profits above ₹1 lakh.
Dividends
Added to the investor’s total income and taxed as per the applicable income tax slab.
Turnover Frequency
Generally higher due to frequent buying and selling of stocks.
Tax Deducted at
Source (TDS)
Not applicable – PMS providers don’t deduct TDS. Investors must pay tax directly while filing returns.
Audit Requirement
May be required if turnover exceeds the limit under Section 44AB of the Income Tax Act.
Tax Filing
PMS investors must report profits under “Capital Gains” in their Income Tax Return (ITR).
Tax Responsibility
The investor is responsible for paying taxes, not the PMS provider.

Frequently Asked Questions (FAQs)

Tracking your PMS portfolio is simple. Once you invest, your PMS provider will share regular reports—monthly or quarterly—showing your portfolio performance, gains/losses, and holdings. In addition:

  • Many PMS providers offer online dashboards or mobile apps where you can log in anytime and see updated details.
  • These platforms usually show your current value, invested amount, stock details, asset allocation, and returns.
  • You can also speak to your relationship manager for any help or clarification.

This helps you stay fully informed about how your money is performing.

Taxes depend on how long you stay invested:

  • If portfolio manager sell stocks in less than 1 year, you pay 20% tax on the profit.
  • If portfolio manager sell after 1 year and the profit is over ₹1 lakh, you pay 12.5% tax.

You might also pay tax on dividends or interest earned. It's good to check with a tax expert when filing.

The minimum investment for Portfolio Management Services (PMS) in India is ₹50 lakhs, as mandated by SEBI.

Yes, the minimum investment can be made by transferring shares from your existing demat account. It can also be combination of share and cash.

Yes, it is mandatory as per SEBI regulations. The audited statement is sent every year by the portfolio manager.

Unlike mutual funds, PMS offers a personalized portfolio where you directly own the securities in your Demat account. It provides greater customization, transparency, and flexibility—ideal for high-net-worth investors.

Your portfolio is managed by SEBI-registered professional portfolio managers who build, monitor, and adjust your investments based on strategy and market dynamics.

Yes, NRIs can invest in PMS in India through the NRE/NRO route, subject to RBI and SEBI regulations.

Returns vary depending on market conditions and the strategy you choose. PMS aims to outperform benchmarks by leveraging active management and focused strategies.

Yes, PMS is regulated by SEBI (Securities and Exchange Board of India), and all portfolio managers must adhere to strict compliance and transparency standards.

PMS providers share detailed performance reports, portfolio holdings, and analytics regularly. With PMS Bazaar, you also get access to comparison tools and expert insights.

Yes, you can exit anytime as there is no lock-in period. However, charges or exit loads may apply if you choose to withdraw early.

PMS Bazaar brings together top-performing PMS providers, simplifies comparison, offers expert support, and ensures transparency—making it easier for you to make confident investment decisions.

TWRR (Time-Weighted Rate of Return)
TWRR shows the return generated purely by the portfolio manager's skill. It removes the impact of cash inflows and outflows (like additional investments or withdrawals), making it ideal for comparing manager performance.

In short:
  • Use TWRR to assess fund manager performance.

APMI is a non-profit organization formed on December 31, 2021, to represent and support SEBI- registered portfolio managers in India. It offers a platform for collaboration, promotes best practices, and works to strengthen the portfolio management industry. APMI advocates for its members' interests, helps build investor trust, and aims to position portfolio managers as key players in India's investment landscape. Membership is open only to SEBI-registered portfolio managers.

Yes, PMS is ideal for high-net-worth investors (HNIs) seeking personalized portfolio management and higher alpha potential compared to traditional mutual funds.