Portfolio Management Service
A SEBI-registered service managing a separate portfolio of securities for a single client, with a high minimum investment.
Formula
Test: securities are held in the client's own name or demat account and managed under a discretionary or non-discretionary agreement
Unit
₹
In depth
The key structural difference from a mutual fund is ownership: in a PMS the securities are held in the client's own name, so each client has an individual portfolio and an individual tax position on every transaction the manager makes. That means realised gains are taxed as they occur, unlike a fund where internal trading creates no investor-level tax event. The minimum investment is ₹50 lakh, fees are typically higher and often include a performance share, and disclosure is client-specific rather than public. Comparing PMS returns across providers is difficult because there is no standardised published NAV.
Worked example
A PMS charging 2% fixed plus 20% of returns above 10% on a ₹1 crore portfolio returning 18% costs 2,00,000 + 0.20 x 8,00,000 = ₹3,60,000, or 3.6% of the portfolio in that year.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Portfolio Management Service” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.