AMFI-registered Mutual Fund Distributor: Shital Shukla, ARN-87539, valid till 14 Oct 2027AMFI-registered Mutual Fund Distributor: Jija Roy, ARN-152830, valid till 14 Dec 2027APMI-registered PMS Distributor: Jija Roy, APRN00191, valid till 4 Sep 2029Insurance (IRDAI): URN AILI0301250160 (Shital Shukla, life)

Home / Investments / Portfolio Management Services

Portfolio Management Services

A portfolio of stocks held in your own name and run by a SEBI-registered portfolio manager. We help you understand it, compare approaches and decide whether it fits.

What PMS is

Portfolio Management Services (PMS) is a contract for a service. Under a written agreement with you, a professional portfolio manager invests your money, usually in listed shares, according to a stated investment approach. Unlike a mutual fund, you do not buy units of a pool. The shares are bought and held directly in your own demat account, so you can see every stock, every trade and every charge.

Only portfolio managers registered with the Securities and Exchange Board of India (SEBI) can offer PMS. SEBI sets the minimum investment at ₹50 lakh, which can be brought in as money, as existing shares, or both.

Finpotters facilitates access to PMS offered by SEBI-registered portfolio managers. We do not manage portfolios ourselves.

How PMS compares with mutual funds

The same kind of shares can sit behind both. What changes is what you own, what it costs and how it is taxed.

Mutual fundPMS
What you ownUnits of a pooled schemeShares directly, in your own demat account
MinimumSmall amounts, including monthly SIPs₹50 lakh, as set by SEBI
PortfolioThe same for every investor in the schemeFollows a model, but can differ by entry date and your instructions
TaxTax arises mainly when you redeem unitsEvery sale by the manager is a taxable event in your hands
CostsExpense ratio, within SEBI limitsFixed fee, performance-linked fee, or both, plus trading and custody charges

Common types of approach

In a discretionary PMS, the manager decides what to buy and sell within the agreed approach. In a non-discretionary PMS, the manager acts on your directions.

Concentrated equityA focused portfolio of relatively few stocks, held with conviction.
Thematic strategiesBuilt around a theme or sector, such as manufacturing, consumption or financial services.
Active managementThe manager buys and sells actively instead of tracking an index.

Who it may suit

Larger portfoliosInvestors who can commit ₹50 lakh or more without needing it back soon.
Long horizonPeople with a time horizon of five years or more, who can sit through sharp falls.
Want transparencyInvestors who want to see and own each stock, not a unit of a pool.

It may not suit you if you need regular income, may need the money within a few years, or would be uncomfortable seeing a concentrated portfolio fall more than the market.

How Finpotters helps

We do not manage portfolios. We help you decide whether PMS belongs in yours, and which approach fits.

  1. Is PMS right for you?We start with your goals, horizon and existing investments. Sometimes the honest answer is that a mutual fund does the job.
  2. Compare approachesIn a one-to-one conversation, we walk you through the investment approach, fee structure and exit terms of SEBI-registered portfolio managers, comparing like with like and giving you the complete facts.
  3. Read the Disclosure Document with youEvery portfolio manager publishes one. We help you understand it before you sign.
  4. Onboarding and reviewsAccount opening, documents and periodic reviews of how the portfolio fits your plan.

The risks, plainly

PMS can do well and it can do badly. These are the ways it can go wrong, so you can weigh them before you commit.

Market riskShare prices can fall, and there is no assured return in any PMS.
Concentration riskFewer stocks can mean bigger swings than a diversified fund.
Manager riskResults depend heavily on one team's judgement and discipline.
Cost and tax dragFees, performance fees and taxes on each trade reduce what you keep.
Exit termsSome managers charge an exit load in the first three years. SEBI caps it at 3%, 2% and 1% of the amount withdrawn in years one, two and three. Read the agreement.

Common questions

Why is the minimum ₹50 lakh?
SEBI sets it. PMS is meant for investors who can handle a concentrated, actively traded portfolio. The minimum applies per client, and can be met with cash, existing shares, or a mix. Accredited investors, who meet SEBI's income or net-worth tests, can be exempt where the manager's Disclosure Document allows it.
Can I move my existing shares into a PMS?
Often, yes. Many portfolio managers accept existing shares as part of the minimum, then sell or keep them as per their approach. Selling them may create capital gains tax for you.
How are PMS fees charged?
A fixed yearly fee, a share of profits above an agreed level (a performance fee), or a mix. SEBI requires performance fees to follow a high-water mark, so you are not charged twice for the same gain. The exact terms are in the Disclosure Document and your agreement. Ask for them in writing.
Can I see past performance?
Portfolio managers report performance to SEBI and to APMI (the Association of Portfolio Managers in India) every month, and APMI publishes it on its website. We point you to that data in full rather than quoting numbers on this site. Past performance may or may not be sustained in future.
Can I withdraw money whenever I want?
Usually yes, subject to any exit load and a minimum balance the manager requires. The shares are sold and the money comes to your bank account, after tax consequences.
Is PMS open to NRIs?
Many SEBI-registered portfolio managers accept NRIs, through the right bank and demat accounts. Rules differ by country of residence, so please speak to us first.
Please note: Portfolio Management Services involve market risks and may not be suitable for all investors. Returns are not assured, and past performance does not indicate future results. Read the Disclosure Document and the agreement carefully before investing. PMS distribution: Jija Roy, APMI-registered (APRN00191), valid till 4 Sep 2029. Finpotters facilitates PMS of SEBI-registered portfolio managers and receives distribution commission from them; the commission for each investment approach is disclosed to you before you invest. Portfolio managers also offer direct on-boarding without a distributor. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Wondering if PMS fits your portfolio?

We will help you weigh it against mutual funds, honestly, before you commit.

Start a conversation

You are leaving Finpotters

You are going to another website, which is run by a third party. Finpotters does not control it and is not responsible for its content, security or privacy practices. Never share your OTP, PIN or password with anyone.

Continue

Start a conversation

Leave your details and choose how to send them: by email, or on WhatsApp to Shital Shukla or Jija Roy. We will get back to you, in India or abroad.