PMS Learning Centre
Everything you need to know about
Portfolio Management Services
India's ₹50-lakh institutional investment structure — explained clearly. From what PMS is and how TWRR returns work, to taxation, fees, and whether PMS belongs in your portfolio.
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Alpha across 1, 3 and 5 years. TWRR returns net of fixed costs. Curated from 400+ strategies, updated monthly. Or talk it through with us first — 30 minutes, no obligation.
Frequently Asked Questions
What is PMS (Portfolio Management Services) in India?
PMS is a SEBI-regulated investment service where a professional fund manager runs an equity portfolio held directly in your own demat account, in your name. Unlike pooled funds, you own every stock directly. The minimum investment is ₹50 lakhs. While most PMS in India operate on a discretionary basis under a Power of Attorney, investors can also opt for non-discretionary PMS, where the provider executes transactions only at the investor's instruction.
What is the minimum investment for PMS in India?
SEBI has set the minimum investment for PMS at ₹50 lakhs. Individual strategies may set higher entry points — some require ₹1 crore or more. As a working rule, PMS suits investors for whom ₹50 lakhs is one allocation within a larger portfolio, not the majority of their investable wealth.
How is PMS taxed in India?
PMS is taxed exactly like direct equity. Every transaction in your demat account is a taxable event — STCG at 20% for listed equity held 12 months or less, LTCG at 12.5% above ₹1.25 lakh annually for longer holdings. Unlike mutual funds, there is no fund-level tax shield; each trade the manager executes is taxable in your hands.
What is the difference between discretionary and non-discretionary PMS?
In discretionary PMS — the dominant model in India — the fund manager executes all decisions under a Power of Attorney, within the agreed strategy and your declared negative list. In non-discretionary PMS, the manager recommends but every trade needs your approval. Discretionary offers speed and professional discipline; non-discretionary retains trade-level control.
Is PMS better than mutual funds?
Neither is better — they serve different stages. Mutual funds offer diversification, low minimums, and fund-level tax efficiency. PMS offers direct ownership, concentrated high-conviction portfolios without the 10% single-stock cap, and capabilities like covered call writing. Most serious investors hold mutual funds as the core and add PMS for incremental capital above ₹50 lakhs.
How do I choose the best PMS in India?
Look beyond last year's returns. Evaluate Alpha — returns above the strategy's benchmark — across 1, 3 and 5 years together; consistency across all three periods indicates repeatable skill rather than a lucky cycle. Then verify fund manager tenure, strategy clarity, complete fee math including high watermark, and overlap with your existing holdings.
Which PMS categories can I compare — large cap, mid cap, small cap?
PMS strategies span large cap, mid cap, small cap, multi cap, flexi cap, thematic and contra styles. The right category depends on your risk appetite and the role the allocation plays in your broader portfolio. The AND Fintech PMS dashboard lets you filter and compare strategies by category with benchmark-adjusted returns, updated monthly.
AND Fintech (ARN-301536, APRN05170) is an AMFI-registered Mutual Fund Distributor and an APMI-registered PMS Distributor. AND Fintech is not a SEBI-Registered Investment Adviser. All content on this page is for educational purposes only and does not constitute investment advice. PMS investments are subject to market risks and require a minimum investment of ₹50 lakhs as per SEBI regulations. Please read all disclosure documents carefully before investing. Past performance is not indicative of future results.
