Portfolio Management Services in India: Best PMS List 2024

What do you mean by Portfolio Management Services? Which are the popular and Best Portfolio Management (PMS) Services in India? Do you wish to get an answer to these simple yet interesting queries. If yes, keep reading further to dig deeper into the list of PMS in India.

Often you would have felt the requirement of expert help whenever you invest in the share market with your personal understanding or at the very thought of investing in the share market. Getting a sturdy help can support you in exploring the wonderful possibilities and making money on your investments in the market.

What is PMS?

A PMS or a portfolio management service is a unique and customized wealth management service with no pooling of assets like a mutual fund. A PMS is provided normally to high net worth (HNW) or Ultra High Net Worth(UHNW) investors. This encompasses a minimum investment of Rs.50 lacs in contrast to mutual funds. Each buys and sell transactions by the fund manager is taxable to the investors.

So, here we have compiled information on different portfolio management services, PMS returns, benefits and fees thereon.

Portfolio Management (PMS) Services in India

Now, you know the meaning of PMS. But how to invest through it? Let’s figure it out in 5 basic steps.

Step: 1 – Choose the best PMS company in India. You can take reference from the list we have provided to you.

Step: 2 – Then your task is to connect the respective portfolio manager. You have to fill out a form for it or you will be given assistance from the PMS company you choose.

Step: 3 – After you initiate, you will get a call from their team. This call will be to decide on a face-to-face meet up and give you the basic details.

Step: 4 – Then you will be asked to upload a set of documents to start the process. Documents will be basic like your ID Proof, PAN card, Address Proof, photographs, canceled cheque, FATCA declaration, Term sheet etc.

Step: 5 – This is the last step wherein you have to deposit the minimum amount i.e. 50 Lakhs to start your PMS. It will take a week to create your account and then you will receive your login details.

Types of PMS

  • Discretionary: The client transfers management to the PMS fund manager. On the advice of professionals, investments are managed (buy and sell securities) on behalf of every client. The fund manager is given a free hand to invest on behalf of the client.
  • Non–discretionary: All the transactions have to be approved by the client.
  • Advisory: Solely recommendation is given but no execution is done by the fund manager.
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Benefits of Portfolio Management Services India (PMS)

Here, we shall be discussing the benefits of PMS in detail. The biggest advantage of PMS is that it is backed by an associated professional fund management team with a research team to back them up.

1. Portfolio with the Benefit of Discretion

The essence of PMS is beautiful in a way that it creates a unique and completely customized portfolio as per the needs and risk appetite. Whereas Mutual Funds create a single platform for all schemes and all fund holders get a share of that.

This is the reason why PMS is more suited to HNWs and UNHWs where the size of the portfolio can anytime be customized.

2. Customizable Portfolio for Damage Control and Quality portfolio

A PMS is distinctive in a variety of ways. Firstly, it creates a novel portfolio for the client which is entirely suited to the client needs.

Secondly, the portfolio mix is customized to the investment and liquidity desires over an amount of time. Now, that is what makes it distinctive from Mutual Funds.

Thirdly, PMS additionally offers you add on services like realty services and other services like choosing equity diversified funds, sector funds etc. to provide a complete offering.

3. Transparency of Portfolio, Performance & Reporting

Under the SEBI rules of PMS, all such funds are needed to form a clear revelation of all transactions and costs. Therefore the portfolio is transparent to the clients on a continuous basis. Under PMS scheme, additional reports of portfolio performance against numerous relevant benchmarks are regularly published.

4. Professional help with the sturdy and expert team backing data

Client gets knowledgeable recommendation across instruments from debt to equity to gold and mutual funds.

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5. Diversification across Debt, Equity, REITS, etc

PMS provides the opportunity to invest in a larger fund pools.  PMS is more flexible and they do not have many restrictions to invest in and diverging from their core mutual fund intent, unlike the mutual funds. Investors have wider options to invest in real estate trusts, foreign assets, gold ETFs, etc.

Portfolio Management Services in India, Best PMS Services

Best Portfolio Management Services: Top 5

  1. Porinju Veliyath Equity Intelligence PMS
  2. Motilal Oswal Next Trillion-Dollar Opportunity PMS (NTDO)
  3. Birla Sunlife PMS
  4. Kotak PMS
  5. ICICI Prudential Portfolio Management Services
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1. Porinju Veliyath Equity Intelligence PMS

This is the most successful and one of the leading PMS Services in India. The same was incorporated in 2002 and founded by Porinju Veliyath. The minimum investment for this PMS is Rs.50 lacs. This is a discretionary PMS i.e. the fund manager takes the decisions to buy and sell stocks. There is no lock-in period for the investments and entertains the flexibility of withdrawing money anytime.

In the last 5 years, the PMS has released the returns at the rate of 35% on average, massively outperforming Nifty 50 and BSE Sensex. Under this PMS, there is “no entry load” and “no exit load too”.

Porinju Veliyath Equity Intelligence PMS charges 2% per year as management fees. Also, an yearly 10% is charged on the returns for additional performance. In fact, an NRI can also invest in this Porinju Veliyath PMS.

2. Motilal Oswal Next Trillion Dollar Opportunity PMS (NTDO)

Motilal Oswal is the Asset Management Company (AMC) and Next Trillion Dollar is a PMS provider with the service name as Next Trillion-Dollar Opportunity (NTDO). This PMS is great for short and medium-term investors who want to invest in small and mid-cap stocks.

Motilal Oswal PMS offers 3 main primary products:

  • Value Strategy
  • Next Trillion-Dollar Opportunity
  • India Opportunities Portfolio Strategy

The minimum investment for this PMS is about Rs.50 lacs. NTDO charges 1%-2.5% per annum as a management fee. There are additional fees on audit, custody, exchange, etc.

NRI can also invest in the Motilal Oswal PMS or Portfolio management service provider.

3. Birla Sunlife PMS

Incorporated in the year 2004 and the brand service provider of Aditya Birla has an Asset Management Company (AMC) Birla Sunlife PMS. The fund managers of this PMS handle around 350+ PMS Clients and hold an AUM of Rs.22,000 Cr.

The minimum investment on Birla Sunlife PMS is Rs.50 Lacs with a lock-in period of 1-3 years.

The management fees are usually charged according to the commission model discussed between PMS and the client. The exit load post 12 months period is free while a charge of 1.2%-2.2% is charged within 12 months. The brokerage charges are usually levied at 0.01%-0.06% of the total transaction amount. While the custodian fees is charged at 0.25%-0.45% and depository fees ranges from 0.21%-0.32% of total asset value.

4. Kotak PMS

Kotak AMC PMS was established in 2012 and is one of the largest Portfolio Management Service providers in the country today. The minimum investment in Kotak PMS is Rs.50 lacs. Kotak PMS falls in the discretionary PMS type. It invests in 10-25 stocks with different investment approaches to generate higher returns.

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Kotak PMS offers 2 main products:

  • Special Situations Value Strategy
  • Small and Mid cap Strategy

Kotak PMS charges a fixed management fee of 2.5% yearly with zero fees on the performance. There are charges on exit loads at 3%, 2% and 1% depending on early exits.

5. ICICI Prudential Portfolio Management Services (ICICI PMS)

Talking about leading PMS providers, ICICI PMS surely deserves to be added here. You can get a wide range of products & portfolios through the ICICI PMS. These include Core & Thematic Portfolio, large cap, flexi cap,  infrastructure, export, wellness, absolute return, enterprising India portfolio categories.

The minimum investment in ICICI Prudential PMS is Rs.50 lacs and the prepaid commission fees vary from 2.2%-1.6%. The management fees range from 0.22%-0.15% depending on the yearly transactional sum and a commission of up to 33% on the profit amount.

Apart from the commission fees, there are other charges like brokerage, upfront fees, Depository charges, Exit loads and Custodian charges.

Portfolio Management Services: The Bottom Line

Portfolio Management Services or PMS can be a great way to achieve your investing dream. But, all this comes at a risk and a of course a big fee. Also, you must be High Net worth Individual (HNI) since the minimum capital requirement for availing these services is quite higher. Hence, small investors can’t enjoy these services.

No doubt, HNIs are approaching specialist and top PMS services in India to manage their wealth. Further, you can get personalised professional solutions to meet your financial objectives.

However, there is no guarantee of performance. Despite the fantastic returns which makes it a Midas element for any wealthy investor, the experts feel that small investors need to think again before investing on PMS. Also, not all PMS schemes have done well. It shares your profits, ant not the losses. Moreover, you can view your Demat account but can’t fully control it.

So, there are both pros and cons to using any kind of service. You just have to weigh out what suits you better. Remember to analyse your requirements before choosing the best portfolio management services for your long term investment needs.

Have you invested through any of these Portfolio Management Services? Do share your feedback and any relevant experience thereon.

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