{"id":3821,"date":"2024-03-07T05:29:47","date_gmt":"2024-03-07T05:29:47","guid":{"rendered":"https:\/\/wp-api.pocketful.in\/blog\/?p=3821"},"modified":"2026-09-22T06:51:08","modified_gmt":"2026-09-22T06:51:08","slug":"explainer-on-portfolio-management-services-pms-features-types-charges-taxation-and-risks","status":"publish","type":"post","link":"https:\/\/wp-api.pocketful.in\/blog\/explainer-on-portfolio-management-services-pms-features-types-charges-taxation-and-risks\/","title":{"rendered":"Portfolio Management Services &#8211; Features, Charges &amp; Risks"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Portfolio Management Services is a solution that offers you professional expertise to help you manage your portfolio and grow it. It involves buying stocks and securities in your demat account and directly managing it so that you can have better returns.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While this is a great opportunity, it is important to note that there are certain terms and aspects associated with it. The details of the same are discussed in the guide here.&nbsp;<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/wp-api.pocketful.in\/blog\/explainer-on-portfolio-management-services-pms-features-types-charges-taxation-and-risks\/#What_Does_PMS_Mean\" title=\"What Does PMS Mean?\">What Does PMS Mean?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/wp-api.pocketful.in\/blog\/explainer-on-portfolio-management-services-pms-features-types-charges-taxation-and-risks\/#A_Quick_Note_PMS_in_Company_or_Corporate_Terms\" title=\"A Quick Note: PMS in Company or Corporate Terms\">A Quick Note: PMS in Company or Corporate Terms<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/wp-api.pocketful.in\/blog\/explainer-on-portfolio-management-services-pms-features-types-charges-taxation-and-risks\/#What_are_the_Core_Objectives_of_Portfolio_Management\" title=\"What are the Core Objectives of Portfolio Management\">What are the Core Objectives of Portfolio Management<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/wp-api.pocketful.in\/blog\/explainer-on-portfolio-management-services-pms-features-types-charges-taxation-and-risks\/#How_Does_Portfolio_Management_Services_Work\" title=\"How Does Portfolio Management Services Work?\">How Does Portfolio Management Services Work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/wp-api.pocketful.in\/blog\/explainer-on-portfolio-management-services-pms-features-types-charges-taxation-and-risks\/#Types_of_Portfolio_Management_Services\" title=\"Types of Portfolio Management Services\">Types of Portfolio Management Services<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/wp-api.pocketful.in\/blog\/explainer-on-portfolio-management-services-pms-features-types-charges-taxation-and-risks\/#PMS_vs_Mutual_Funds\" title=\"PMS vs Mutual Funds\">PMS vs Mutual Funds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/wp-api.pocketful.in\/blog\/explainer-on-portfolio-management-services-pms-features-types-charges-taxation-and-risks\/#Benefits_of_Investing_in_PMS\" title=\"Benefits of Investing in PMS\">Benefits of Investing in PMS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/wp-api.pocketful.in\/blog\/explainer-on-portfolio-management-services-pms-features-types-charges-taxation-and-risks\/#Fees_and_Charges_Associated_with_PMS\" title=\"Fees and Charges Associated with PMS\">Fees and Charges Associated with PMS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/wp-api.pocketful.in\/blog\/explainer-on-portfolio-management-services-pms-features-types-charges-taxation-and-risks\/#How_PMS_Investments_Are_Taxed\" title=\"How PMS Investments Are Taxed\">How PMS Investments Are Taxed<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/wp-api.pocketful.in\/blog\/explainer-on-portfolio-management-services-pms-features-types-charges-taxation-and-risks\/#SEBI_Regulations_Governing_PMS\" title=\"SEBI Regulations Governing PMS\">SEBI Regulations Governing PMS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/wp-api.pocketful.in\/blog\/explainer-on-portfolio-management-services-pms-features-types-charges-taxation-and-risks\/#Who_Should_Consider_PMS\" title=\"Who Should Consider PMS?\">Who Should Consider PMS?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/wp-api.pocketful.in\/blog\/explainer-on-portfolio-management-services-pms-features-types-charges-taxation-and-risks\/#Final_Thoughts\" title=\"Final Thoughts\">Final Thoughts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/wp-api.pocketful.in\/blog\/explainer-on-portfolio-management-services-pms-features-types-charges-taxation-and-risks\/#Frequently_Asked_Questions_FAQs\" title=\"Frequently Asked Questions (FAQs)\">Frequently Asked Questions (FAQs)<\/a><\/li><\/ul><\/nav><\/div>\n<h2 id=\"h-what-does-pms-mean\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Does_PMS_Mean\"><\/span>What Does PMS Mean?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">PMS full form is Portfolio Management Services. It is a SEBI-regulated investment service where a registered portfolio manager builds and manages a segregated portfolio of securities on behalf of an individual investor.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This portfolio is tailored to that investor&#8217;s specific goals, risk appetite, and time horizon. There is no pooling involved. You own the actual securities directly, in your own demat account.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The minimum investment for PMS in India, as mandated by SEBI, is \u20b950 lakh, which is why it&#8217;s positioned mainly for high-net-worth individuals, NRIs, HUFs, and similar eligible entities rather than retail investors.<\/p>\n\n\n\n<h2 id=\"h-a-quick-note-pms-in-company-or-corporate-terms\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"A_Quick_Note_PMS_in_Company_or_Corporate_Terms\"><\/span>A Quick Note: PMS in Company or Corporate Terms<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If you landed here searching for PMS full form in company or PMS full form in corporate settings, know that PMS carries a completely different meaning in HR and business management.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When you consider it in a company from the HR perspective, it is the Performance Management System. This is the process companies use to set employee goals, track performance, and conduct appraisals. That&#8217;s unrelated to the investment product covered in this article. Everything from this point forward refers specifically to Portfolio Management Services in the financial and investment sense.<\/p>\n\n\n\n<h2 id=\"h-what-are-the-core-objectives-of-portfolio-management\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Core_Objectives_of_Portfolio_Management\"><\/span>What are the Core Objectives of Portfolio Management<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Every PMS strategy, regardless of the manager or approach, is generally built around a consistent set of goals.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Capital Appreciation<\/strong>: Growing the overall value of the portfolio over time. This is primarily through growth-oriented assets like equities.<\/li>\n\n\n\n<li><strong>Risk Optimisation Through Diversification<\/strong>: Balancing returns and risk as per the client&#8217;s needs. This is done by spreading investments across asset classes, sectors, and individual securities.<\/li>\n\n\n\n<li><strong>Downside Protection During Volatile Phases<\/strong>: Actively managing exposure to limit drawdowns when markets turn volatile. The idea is to ensure better performance and avoid the assets that are not aligned with the goal.<\/li>\n\n\n\n<li><strong>Liquidity for Opportunities and Emergencies<\/strong>: Keeping enough flexibility in the portfolio to act on new opportunities. Supporting and helping to handle unexpected cash needs without disrupting the broader strategy.<\/li>\n\n\n\n<li><strong>Goal-Based Allocation<\/strong>: Tailoring the asset mix specifically to the investor&#8217;s stated financial goals, rather than applying a generic allocation model to every client.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"h-how-does-portfolio-management-services-work\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Does_Portfolio_Management_Services_Work\"><\/span>How Does Portfolio Management Services Work?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The PMS process moves through a defined sequence once you sign on with a portfolio manager.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Client Profiling<\/strong>: The portfolio manager evaluates your financial situation. This is followed by setting the investment goals, liquidity needs, risk tolerance, and time horizon. All this done before designing anything.<\/li>\n\n\n\n<li><strong>Strategy Formulation<\/strong>: A custom investment strategy gets built around your profile, covering asset allocation, stock selection approach, and a risk management framework specific to your goals.<\/li>\n\n\n\n<li><strong>Account Setup and Funding<\/strong>: A demat account, trading account, and dedicated bank account get opened in your name, and your funds or existing securities are transferred in.<\/li>\n\n\n\n<li><strong>Portfolio Construction and Management<\/strong>: The manager executes trades, actively monitors the market, and rebalances the portfolio in line with the agreed strategy on an ongoing basis.<\/li>\n\n\n\n<li><strong>Reporting and Review<\/strong>: You receive regular performance reports, disclosures, and digital access to view your holdings and transaction history at any time.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"h-types-of-portfolio-management-services\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Types_of_Portfolio_Management_Services\"><\/span>Types of Portfolio Management Services<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">PMS in India comes in three distinct structures, each giving you a different level of control.&nbsp;<\/p>\n\n\n\n<h3 id=\"h-1-discretionary-pms\" class=\"wp-block-heading has-medium-font-size\">1. Discretionary PMS<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The portfolio manager has full authority to make investment decisions on your behalf. This is without needing prior approval for each trade. This suits investors who want a genuinely hands-off experience.<\/p>\n\n\n\n<h3 id=\"h-2-non-discretionary-pms\" class=\"wp-block-heading has-medium-font-size\">2. Non-Discretionary PMS<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The manager recommends trades, but nothing executes until you approve it. This works for investors who want expert input while still retaining final say over every decision.<\/p>\n\n\n\n<h3 id=\"h-3-advisory-pms\" class=\"wp-block-heading has-medium-font-size\">3. Advisory PMS<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The manager provides guidance only. You handle both the decision-making and the actual trade execution yourself. This gives the most control, suited to experienced investors with the time to manage things directly.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Read Also: <\/strong><a href=\"https:\/\/www.pocketful.in\/blog\/mutual-funds\/mutual-fund-vs-pms\/\">Mutual Fund vs PMS: Which is Better?<\/a><\/p>\n\n\n\n<h2 id=\"h-pms-vs-mutual-funds\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"PMS_vs_Mutual_Funds\"><\/span>PMS vs Mutual Funds<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Many people confuse PMS with mutual funds, but they are different. Read this to know how they stand apart.<\/p>\n\n\n\n<figure class=\"wp-block-table has-small-font-size\"><table><thead><tr><th>Factor<\/th><th>PMS<\/th><th>Mutual Funds<\/th><\/tr><\/thead><tbody><tr><td>Minimum investment<\/td><td>\u20b950 lakh<\/td><td>As low as \u20b9100 via SIP<\/td><\/tr><tr><td>Ownership<\/td><td>Direct ownership of securities<\/td><td>Pooled units, no direct ownership<\/td><\/tr><tr><td>Customisation<\/td><td>Fully tailored to the investor<\/td><td>Standardised for all unit holders<\/td><\/tr><tr><td>Transparency<\/td><td>Real-time visibility into every holding<\/td><td>Portfolio disclosed periodically<\/td><\/tr><tr><td>Taxation<\/td><td>Taxed directly in investor&#8217;s hands per trade<\/td><td>Taxed at redemption of units<\/td><\/tr><tr><td>Regulation<\/td><td>SEBI (Portfolio Managers) Regulations, 2020<\/td><td>SEBI Mutual Fund Regulations<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 id=\"h-benefits-of-investing-in-pms\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_of_Investing_in_PMS\"><\/span>Benefits of Investing in PMS<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Investing in PMS is a great choice and can offer you a range of benefits, like:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Professional, Research-Driven Management<\/strong>: The portfolio is managed by an expert and is designed based on the needs of the investors. This supports long-term growth and will ensure that you invest after following risk and return analysis.<\/li>\n\n\n\n<li><strong>Genuine Customisation<\/strong>: Every PMS portfolio is built around your specific goals, risk tolerance, and liquidity needs, and can evolve as your circumstances or the market changes.<\/li>\n\n\n\n<li><strong>Direct Ownership and Transparency<\/strong>: Securities sit in your own demat account, giving you real-time visibility into exactly what you hold, unlike a pooled fund where you own units rather than the underlying stocks.<\/li>\n\n\n\n<li><strong>Tax-Aware Portfolio Construction<\/strong>: Portfolio managers factor in tax efficiency when structuring trades This is aimed to optimise your post-tax returns within regulatory limits.<\/li>\n\n\n\n<li><strong>Time Saved for Investors Who Can&#8217;t Manage Actively<\/strong>: If you don&#8217;t have the time or expertise to track markets closely, PMS hands that responsibility to a professional while keeping you informed through regular reporting.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"h-fees-and-charges-associated-with-pms\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Fees_and_Charges_Associated_with_PMS\"><\/span>Fees and Charges Associated with PMS<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">PMS costs come from a few distinct sources, not one flat number.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Management fee<\/strong>, either fixed, performance-linked, or a hybrid of both, agreed between you and the portfolio manager.<\/li>\n\n\n\n<li><strong>Brokerage, custodian, and demat charges<\/strong>, added on top of the management fee as operational costs.<\/li>\n\n\n\n<li><strong>No upfront fees allowed<\/strong>, since SEBI regulations specifically prohibit charging fees before the investment is made.<\/li>\n\n\n\n<li><strong>Exit load, where applicable<\/strong>, generally capped at 3% in the first year, 2% in the second, 1% in the third, and nil after that, to discourage short-term withdrawals.<\/li>\n\n\n\n<li><strong>Operating expenses excluding brokerage<\/strong>, capped at 0.50% per annum of average daily assets under management.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"h-how-pms-investments-are-taxed\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_PMS_Investments_Are_Taxed\"><\/span>How PMS Investments Are Taxed<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Since securities sit directly in your account rather than in a pooled structure, tax treatment works differently from a mutual fund.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Gains are taxed directly in your hands<\/strong>, not at the fund level, since you personally hold each security.<\/li>\n\n\n\n<li><strong>Long-term capital gains on listed equity<\/strong> are taxed at 12.5% above the applicable exemption threshold, subject to surcharge and cess.<\/li>\n\n\n\n<li><strong>Short-term capital gains<\/strong> are taxed at 20%, also subject to surcharge and cess.<\/li>\n\n\n\n<li><strong>Every trade the manager makes<\/strong> can trigger a taxable event in your name, unlike a mutual fund where only your own redemption creates one.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"h-sebi-regulations-governing-pms\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"SEBI_Regulations_Governing_PMS\"><\/span>SEBI Regulations Governing PMS<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">PMS providers operate under the SEBI (Portfolio Managers) Regulations, 2020, along with periodic master circulars. Key requirements include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Mandatory SEBI registration<\/strong> for every PMS provider before they can accept client funds.<\/li>\n\n\n\n<li><strong>The \u20b950 lakh minimum investment threshold<\/strong>, non-negotiable across all providers.<\/li>\n\n\n\n<li><strong>An independent custodian<\/strong> holding client assets separately from the portfolio manager.<\/li>\n\n\n\n<li><strong>A strict prohibition on guaranteeing returns<\/strong>, regardless of what a manager&#8217;s track record looks like.<\/li>\n\n\n\n<li><strong>Mandatory disclosure documents and quarterly reports<\/strong> covering fees, performance, and risk, shared directly with every client.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Read Also:&nbsp;<\/strong><a href=\"https:\/\/www.pocketful.in\/blog\/mutual-funds\/types-of-mutual-funds\/\">Types of Mutual Funds in India<\/a><\/p>\n\n\n\n<h2 id=\"h-who-should-consider-pms\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_Should_Consider_PMS\"><\/span>Who Should Consider PMS?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">PMS is a fit for a specific type of investor, not everyone with spare capital to invest.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Investors who can meet the \u20b950 lakh minimum<\/strong>, since this is a hard SEBI-mandated threshold, not a suggestion.<\/li>\n\n\n\n<li><strong>HNIs, NRIs, and HUFs<\/strong> who are looking for professional management services.<\/li>\n\n\n\n<li><strong>Investors who want direct ownership<\/strong> of the actual securities in their own demat account, not units in a pooled scheme.<\/li>\n\n\n\n<li><strong>Those with a specific investment theme in mind<\/strong> that standard mutual funds don&#8217;t offer.<\/li>\n\n\n\n<li><strong>Investors who lack the time or expertise<\/strong> to actively manage their portfolio.<\/li>\n\n\n\n<li><strong>Investors are comfortable with higher costs and lower liquidity<\/strong>, and are looking for better returns.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"h-final-thoughts\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Final_Thoughts\"><\/span>Final Thoughts<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Portfolio Management Services offer a level of customisation and direct ownership that pooled investment products can&#8217;t match, but that comes paired with a high entry threshold, meaningful fees, and less liquidity than you&#8217;d get from a mutual fund. It&#8217;s built for investors who have the capital, the risk appetite, and a specific enough set of goals to justify a dedicated, professionally managed portfolio. Before committing, check all the details you need like fees and charges.<\/p>\n\n\n\n<figure class=\"wp-block-table has-small-font-size\"><table><thead><tr><th class=\"has-text-align-left\" data-align=\"left\">S.NO.<\/th><th class=\"has-text-align-left\" data-align=\"left\">Check Out These Interesting Posts You Might Enjoy!<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>1<\/strong><\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/demat\/types-of-demat-accounts\/\">Types of Demat Accounts in India<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>2<\/strong><\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/demat\/features-and-benefits-of-demat-account\/\">Features and Benefits of Demat Account<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>3<\/strong><\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/demat\/can-i-have-multiple-demat-accounts-in-india\/\">Can I Have Multiple Demat Accounts in India?<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>4<\/strong><\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/demat\/how-to-open-a-demat-account-online\/\">How to Open a Demat Account Online?<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>5<\/strong><\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/best-small-cap-etfs-to-invest-in-india\/\">Small-Cap ETFs to Invest in India<\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 id=\"h-frequently-asked-questions-faqs\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions_FAQs\"><\/span>Frequently Asked Questions (FAQs)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"saswp-faq-block-section\"><ol style=\"list-style-type:none\"><li style=\"list-style-type: none\"><h3 class=\"\">What is the full form of PMS in the investment context?<\/h3><p class=\"saswp-faq-answer-text\">PMS stands for Portfolio Management Services. It is a SEBI-regulated service where a professional portfolio manager builds and manages a customised, directly-owned securities portfolio for an eligible investor.<\/p><li style=\"list-style-type: none\"><h3 class=\"\">What is the minimum investment required for PMS in India?<\/h3><p class=\"saswp-faq-answer-text\">SEBI mandates a minimum investment of \u20b950 lakh for PMS, which is why it&#8217;s aimed primarily at high-net-worth individuals, NRIs, and similar eligible entities rather than retail investors.<\/p><li style=\"list-style-type: none\"><h3 class=\"\">How is PMS different from a mutual fund?<\/h3><p class=\"saswp-faq-answer-text\">PMS gives you direct ownership of individual securities in your own demat account with a fully customised strategy, while mutual funds pool your money with other investors into shared units following a standardised strategy.<\/p><li style=\"list-style-type: none\"><h3 class=\"\">What does PMS mean in a corporate or HR context?<\/h3><p class=\"saswp-faq-answer-text\">In company or HR settings, PMS usually refers to a Performance Management System, used for employee goal-setting and appraisals, which is entirely unrelated to Portfolio Management Services in investing.<\/p><li style=\"list-style-type: none\"><h3 class=\"\">Are PMS returns guaranteed?<\/h3><p class=\"saswp-faq-answer-text\">No. SEBI regulations specifically prohibit portfolio managers from guaranteeing returns. PMS aims to optimise risk-adjusted performance over a full market cycle, not deliver assured outcomes.<\/p><\/ul><\/div>","protected":false},"excerpt":{"rendered":"<p>Portfolio Management Services is a solution that offers you professional expertise to help you manage your portfolio and grow it. It involves buying stocks and securities in your demat account and directly managing it so that you can have better returns. While this is a great opportunity, it is important to note that there are [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":30194,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"is_paper_insight":false,"paper_insight_image":0,"paper_insight_pdf":0,"paper_insight_ppt":0,"footnotes":""},"categories":[18],"tags":[],"class_list":["post-3821","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-personal-finance"],"acf":{"freelancer":"Akash Gupta"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.13 (Yoast SEO v21.2) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Portfolio Management Services - Features, Charges &amp; Risks<\/title>\n<meta name=\"description\" content=\"PMS stands for Portfolio Management Services. 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