Tailored investment portfolios for HNI investors with a minimum investment of ₹50 Lakhs. Professional management focused on alpha generation.
Unlike Mutual Funds where you hold units, in PMS you own the individual stocks in your Demat account. This allows for greater flexibility, customization, and transparency. It is ideal for investors seeking concentrated portfolios to potentially outperform the broader market.
| Feature | Mutual Fund | PMS | AIF (Category III) |
|---|---|---|---|
| Legal ownership of securities | Pooled trust owns them, you own units | You own the underlying stocks directly in your own demat | Fund owns them, you own units |
| Minimum investment | As low as ₹500 SIP | ₹50 lakh, SEBI-mandated | ₹1 crore |
| Portfolio customization | None, same for every investor | Can vary client to client | None, pooled |
| Transparency | Monthly factsheet | Full real-time visibility of every holding | Periodic fund-level reporting |
| Taxation point | At the fund, you're taxed only on redemption | Directly in your hands on every transaction the manager makes | Pass-through to you |
Managed by seasoned professionals with deep market expertise.
Portfolios tailored to your specific risk-return requirements.
The Fund Manager independently manages the funds and takes buy/sell decisions on your behalf based on the strategy. This is the most common form of PMS in India.
The Fund Manager suggests investment ideas, but the final execution decision rests with you. You have full control over every transaction.
Focuses on established leaders. Lower volatility, steady compounding. Good for capital preservation.
High growth potential. Hunts for the "next big thing". Higher volatility but potential for massive alpha.
Agnostic to market cap. The fund manager shifts allocation based on where value is present.
PMS offers flexible fee structures to align the fund manager's interest with yours.
A flat percentage (e.g., 2-2.5% p.a.) is charged on the Assets Under Management (AUM), regardless of performance. Suitable if you expect very high returns and want to cap costs.
Lower fixed fee (e.g., 1-1.5%) plus a performance fee (e.g., 10-15%) only on returns above a hurdle rate (e.g., 10%). The manager earns more only if you earn more.
Because the securities sit in the investor's own demat account, every transaction the portfolio manager executes is a taxable event for the investor directly. Tax is not deferred until redemption in the way it generally is for a mutual fund investor.
Securities sold within 12 months are taxed at 20% flat.
Securities sold after 12 months are taxed at 12.5%, with the first ₹1.25 lakh per financial year exempt.
Dividends are added to taxable income and taxed at the investor's slab rate. An 18% GST also applies on the PMS management fee.
PMS investors receive a detailed annual capital gains statement that must be reconciled into their income-tax return. This creates meaningfully more compliance work than a mutual fund, and most investors handle it through a coordinated tax-and-investment advisory relationship.
In July 2026 SEBI consulted on a new route letting portfolio managers invest client money in mutual fund units. In September 2026 SEBI's board approved it as the Portfolio Managers Route for Investing in Mutual funds (PRIM), with a ₹25 lakh minimum and the ability to include Specialised Investment Funds (SIFs). The route takes effect once the new regulations are formally notified — speak to us for the latest status before acting on it.
Investors with ₹50 lakh+ who want portfolio customization, full transparency into individual holdings, and are comfortable with the added annual tax-reporting responsibility.
A first-ever equity investment, or investors who want mutual-fund-level simplicity with no additional compliance burden.
Money n Wealth can help compare strategy concentration, fee terms, portfolio overlap, liquidity and tax-reporting implications before tailoring access to a PMS mandate.
Experience the power of professional wealth management. Let's discuss a strategy tailored for you.
Is it right for you?
Our process
We review the manager's process, track record across cycles, portfolio concentration and risk controls.
Fixed vs performance-fee structures, hurdle rates, high-water marks and exit loads explained with worked examples.
We check overlap with your mutual funds and direct holdings before adding a PMS.
Quarterly reviews against the benchmark and help reconciling the annual capital-gains statement for your tax return.
FAQs
SEBI's new SIF category — long-short equity, debt and hybrid strategies with a ₹10 lakh minimum — bridging mutual funds and PMS.
Learn moreCategory I, II and III AIFs — private credit, private equity, real estate and long-short strategies — for eligible investors.
Learn moreGoal-based SIPs and diversified mutual fund portfolios across equity, debt, hybrid and index funds through an AMFI-registered distributor.
Learn moreConsolidated wealth oversight for HNI and business families — investments, protection, succession and reporting in one place.
Learn moreFree, no-obligation consultation with the Money n Wealth team in Thergaon, Pune — or online from anywhere in India. Leave your number and we'll call you back within one working day.
Money n Wealth is a brand of Predics Fintech Services Pvt Ltd — AMFI-registered Mutual Fund Distributor (ARN-121995) and APMI-registered PMS Distributor (APRN-07444). We are not a SEBI-registered Investment Adviser or Research Analyst; content on this page is for information and education. Mutual fund, SIF, PMS and AIF investments are subject to market risks — read all scheme and offer documents carefully before investing.