Build Tailored Wealth with Portfolio Management Service (PMS)
For investors who have outgrown mutual funds and want a more personalised approach to wealth creation, Portfolio Management Service (PMS) offers a sophisticated solution. PMS is a customised investment product where a SEBI-registered portfolio manager builds and manages a portfolio of securities on your behalf, based on your risk profile, return expectations, and financial goals. At Manas Money, we help high-net-worth individuals and families in Thane evaluate and invest in suitable PMS strategies across equity, debt, hybrid, and thematic approaches. Led by CA Manas Madrecha, our role is to help you understand the PMS landscape, compare strategies, and choose options that fit your overall financial plan. PMS investments are subject to market risks, and we do not guarantee any returns.
What is Portfolio Management Service?
Portfolio Management Service is a professional investment service regulated by SEBI, designed for investors who seek customised portfolio construction and active management. Unlike mutual funds, where all investors hold units of the same scheme, a PMS account is unique to you. The securities are held in your own demat account, and you receive detailed reports on holdings, transactions, performance, and corporate actions. PMS strategies can range from large-cap focused portfolios and mid-cap growth strategies to thematic, sectoral, balanced, and international approaches. This level of customisation makes PMS attractive to sophisticated investors who want direct ownership and transparency.
Types of PMS: Discretionary and Non-Discretionary
PMS is broadly classified into two categories. In a discretionary PMS, the portfolio manager has the authority to buy and sell securities on your behalf without seeking prior approval for each trade. This is ideal for investors who want professional managers to take full control of day-to-day investment decisions. In a non-discretionary PMS, the portfolio manager recommends investment ideas, but the final decision and execution require your approval. Both models have their advantages, and the right choice depends on your involvement preference, trust in the manager, and investment experience. At Manas Money, we help you decide which model suits your temperament and lifestyle.
Why Consider PMS?
PMS offers several benefits for eligible investors. Because the portfolio is customised, it can be aligned closely with your goals, tax situation, and ethical preferences. PMS managers often have the flexibility to take concentrated positions, hold cash during market corrections, and invest in opportunities that may not be accessible through mutual funds. You also receive personalised reporting and direct communication from the portfolio management team. For investors with significant capital, PMS can be a powerful tool for long-term wealth creation when combined with proper due diligence and realistic return expectations.
Minimum Investment and Eligibility
SEBI regulations require a minimum investment of ₹50 lakh to open a PMS account. Investors must also meet the know-your-client and suitability requirements of the portfolio manager. PMS is therefore suited for high-net-worth individuals, business families, professionals with substantial investible surplus, and NRIs looking for customised India exposure. Before recommending PMS, we assess whether you have the required investment amount, the right risk appetite, and a long enough time horizon to benefit from active portfolio management. PMS is not a short-term product and should be viewed as a multi-year wealth creation strategy.
Risks and Considerations
While PMS offers customisation and active management, it also comes with higher risks compared to diversified mutual funds. Some PMS strategies are concentrated in a few stocks or sectors, which can lead to higher volatility. Portfolio manager selection is critical, as performance can vary significantly across providers. Fees, including fixed management fees and performance-based fees, can impact net returns. Liquidity may also be lower than mutual funds because securities are held in your demat account and exit depends on market conditions. At Manas Money, we help you evaluate these factors and choose PMS strategies that align with your comfort level and financial objectives.
Taxation of PMS Investments
In a PMS, the securities are held in your name, which means capital gains and dividends are taxed in your hands according to applicable tax laws. Short-term and long-term capital gains tax rates depend on the holding period and the type of security. Your PMS provider typically provides a detailed capital gains statement to help with tax filing. At Manas Money, we coordinate with your tax planning process so that your PMS investments are reported accurately and tax efficiency is considered when comparing PMS with other products such as alternate investment funds and equity mutual funds.
How Manas Money Helps You Choose a PMS
Our PMS advisory and distribution process begins with understanding your net worth, goals, risk appetite, and existing portfolio. We then shortlist SEBI-registered PMS providers and strategies that match your profile, comparing track records, investment philosophies, fee structures, and risk metrics. We explain the strategy documents, help with account opening and demat mapping, and provide ongoing portfolio reviews. Our relationship does not end at the point of investment; we continue to monitor performance and keep you informed so that your PMS allocation remains aligned with your evolving financial plan.
Is PMS Right for You?
PMS is best suited for investors who have a large investible surplus, a long-term horizon, and the ability to tolerate higher volatility in exchange for potentially higher returns. If you are comfortable with concentrated portfolios, value personalised management, and want direct ownership of securities, PMS may be worth exploring. However, if you prefer diversification, lower costs, and liquidity, mutual funds or other products may be more appropriate. At Manas Money, we help you make this decision objectively, keeping your best interests at the centre of the discussion. Book a free consultation with CA Manas Madrecha to find out whether PMS fits your wealth creation strategy. Also read about our portfolio advisory service. You can also explore mutual funds, equity, corporate fixed deposits, structured investment funds, alternate investment funds, and loan against mutual funds.