Portfolio Management
Services (PMS)
Expert-led investing in mutual funds, bonds and more
Basics of PMS
What is Portfolio
Management Service?
Portfolio Management Services are offered by investment experts to grow your wealth and achieve financial goals using instruments like stocks, mutual funds and bonds.
PersonalisedTransparentDiversifiedIndia's PMS industry
₹ 27 Lakh Crore
Assets Under Management
300+
Investment Strategies
₹ 50 Lakh
Minimum Investment
Benefits of PMS
Personalized investing
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Achieve your financial goals & create long-term wealth
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Get full visibility of all transactions in your portfolio
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Invest in a customised asset allocation that suits you
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Diversify your portfolio and reduce investment risks
Expert Management
Get professionals to optimise your portfolio regularly
Get access to a dedicated relationship manager
How does PMS work?
PMS helps you invest in stocks, MFs and other securities like bonds and ETFs.
PMS vs Mutual Funds
Total assets managed by PMS and mutual funds is a whopping Rs. 66 lakh crore.
While investors use PMS and mutual funds to invest in the stock market, they are different in their structure and approach to investing.
Types of Portfolio Management Services
Based on investment control
PMS services can have three types of controls based on who approves and executes portfolio manager recommended transactions, and one service can have all three.
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Discretionary PMS![[object Object]](/portfolio-management-services/_next/static/media/number-two.a3b7f3f9.svg){kind=small}
Non-Discretionary PMS![[object Object]](/portfolio-management-services/_next/static/media/number-three.c75f4e9f.svg){kind=small}
Advisory PMS| Discretionary PMS | Non-Discretionary PMS | Advisory PMS | |
|---|---|---|---|
| Who makes buy and sell recommendations | Portfolio manager | Portfolio manager | Portfolio manager |
| Is investor consent required for execution? | No | Yes | Yes |
| Who executes the transactions? | Portfolio manager | Portfolio manager | Investor |
| Advantage | An expert portfolio manager is in charge of all the decision making | Investor has control over which transactions are executed | Investor has full control over the portfolio |
| Disadvantage | Investor may not agree with some investment decisions but can’t stop the portfolio manager from executing them | The time lag between giving recommendation and getting consent may result in delay and investor getting higher price for stocks | Investor is likely to act emotionally and may miss out on good investment opportunities |
| Availability | Most common | Not very common | Rare |
Based on market cap focus
Market Capitalisation evaluates the value of the company based on it’s stocks.
Large CapMulti CapMid Cap![[object Object]](/portfolio-management-services/_next/static/media/number-four.a28a637c.svg){kind=small}
Small Cap| Large cap | Multi cap | Mid cap | Small cap | |
|---|---|---|---|---|
| Primarily invest in | Largest (top 100) listed companies of India | Across large, mid and small cap listed companies | Medium sized listed companies of India | Small listed companies of India |
| Investment risk | Relatively low | Medium | High | Relatively high |
| Potential returns | Relatively low | Medium | High | Relatively high |
| Strategy benchmark | NIFTY 50 or NIFTY 100 | BSE 200 or BSE 500 | NIFTY Mid Cap 100 | BSE Small Cap |
| Potential to beat benchmark | Low | Medium | High | High |
| Availability | Not very common | Quite common | Quite common | Quite common |
- A few PMS Services have strategies that focus on ‘Large & Mid Cap’ as well as ‘Mid & Small Cap’.
- Additionally, a few strategies involve investing in only Debt/Bonds or only ETFs to achieve investment objectives. But these strategies may not be offered by many PMS service providers.
At Dezerv, we offer mutual fund based PMS strategies and not stock based.
Who should invest in PMS?
The SEBI mandates a minimum investment of Rs. 50 lakh for Portfolio Management Services, up from the previous requirement of Rs. 25 lakh before 2019.
Min. Investment
₹50Lakh
High net worth individuals like-
Busy salaried professionals
High income business owners
Inheritors of family wealth
ESOP liquidation beneficiaries
Dezerv PMS has
outperformed benchmarks
Cumulative returns of Dezerv PMS (ERS strategy) vs BSE500TRI
Understanding PMS Fees
| Charged by | Nature | When is it charged? | Range | |
|---|---|---|---|---|
| Management fee | PMS service provider | Fixed | Every quarter | ~2% of investment |
| Performance fee | PMS service provider | Variable | Every year | ~20% of profits |
| Exit penalty | PMS service provider | Fixed | For early withdrawal from the PMS | ~1-3% of early withdrawal amount |
| Transaction fee | Broker (demat account provider) | Fixed | Every transaction may have a brokerage + broker may have an annual maintenance charge | Varies a lot across brokers |
At Dezerv, we recognize that such hefty fee are responsible for underperformance of most PMS strategies. Hence, our fee structure is affordable and aligned with the interests of our investors.
Still got questions?
We're here to help.
How are Portfolio Management Services different from mutual funds?
Can NRIs invest in PMS services in India?
Where can I get more information on Dezerv Portfolio Management Services?
Is a demat account compulsory to invest in PMS?
Can I redeem from PMS whenever I want?
What is the capital gains tax on Portfolio Management Services?
How are Portfolio Management Service returns calculated?
Related Articles
Mutual fund investments are subject to market risks, read all scheme related documents carefully. Past Performance of the Scheme is neither an indicator nor a guarantee of future performance.
Mutual Fund distribution services are offered through Dezerv Distribution Services Pvt Limited with AMFI Registration No.: ARN -248439, a wholly owned subsidiary of Dezerv Investments Private Limited. Terms and conditions of the website are applicable. Privacy policy of the website is applicable.