How to Invest in a PMS in India

Who can invest, and what you need

A PMS is regulated under the SEBI (Portfolio Managers) Regulations, 2020. The rules set a floor of ₹50 lakh per investor, which you can meet with money, with securities you already hold, or with a combination of the two.

• Who can invest: resident individuals, HUFs, companies, partnership firms, LLPs, trusts — and NRIs, through the route described on our NRI page.
• Documents: PAN, Aadhaar, proof of bank account, and standard KYC. NRIs need passport, visa or OCI card, overseas address proof and FATCA/CRS declarations.
• Accounts: a demat and bank account are opened in your own name with the custodian. Existing accounts can sometimes be linked instead.
• Horizon: five years or more. A concentrated equity strategy needs time to work, and can lag the market for stretches along the way.

If you are investing less than ₹50 lakh, mutual funds are the more suitable route — see PMS vs mutual funds.

How strategies are shortlisted for you

There are hundreds of PMS strategies in India and the best recent performer is rarely the right answer. We work from your profile, not from a league table:

• Fit first. What job this allocation does in your overall portfolio, and what it must not duplicate.
• Returns, measured properly. Time-weighted returns against the benchmark SEBI and APMI assign to that strategy category, over full market cycles rather than the last good year.
• Risk. The worst peak-to-trough fall, how long recovery took, how concentrated the book is, and how much it can deviate from the index.
• Turnover and tax. High turnover means more short-term capital gains in your hands — see how PMS and AIFs are taxed.
• The team. Who runs the strategy, for how long, and whether they invest their own money in it.
• Costs. Every fee modelled across a range of realistic returns, not just the headline percentage.

What it costs

You pay the portfolio manager, not us. Their fees are set out in the Disclosure Document you receive before signing, and usually take one of three shapes: a fixed annual fee, a share of returns above a hurdle, or a combination.

• No upfront fee. SEBI prohibits upfront fees in PMS.
• Exit loads are capped at 3% in the first year, 2% in the second and 1% in the third, with none after that.
• Operating expenses other than brokerage are capped at 0.5% a year.
• GST at 18% applies to fees.
• Our income: an ongoing trail commission of roughly 0.75% a year, paid by the AMC out of the fee it already charges. You pay no more for coming through us, and we disclose the exact trail on every strategy we shortlist, in writing, before you sign anything.

Fee structures move net returns more than most investors expect. Our fees guide works through the arithmetic with examples.

How long it takes

Nothing here is a queue you have to join: the pace is yours, and the diagnostic conversation carries no obligation to proceed.

What we don’t do

• We never hold your money. Your bank and demat accounts are in your own name, with a SEBI-registered custodian. Capital moves between your account and the AMC.
• We don’t guarantee returns, and we treat anyone who does as a red flag.
• We don’t take upfront commission, and we don’t hide the trail we receive.
• We don’t push you to move. Where your existing holdings are sound, the recommendation is often to leave them alone.

After you invest

You receive statements at least quarterly showing holdings, transactions, fees and performance, plus the capital gains statements your accountant will need. We review the portfolio with you periodically — whether the strategy is behaving as described, whether your allocation has drifted, and whether anything has changed in your own circumstances.

Reviewing a PMS you already hold elsewhere is where many of our conversations begin. We map strategy overlap, the real fee load, and how each holding has behaved against its own benchmark — with no obligation to move anything.

Frequently asked questions