Portfolio Management Service (PMS)

Anand Rathi PMS (Portfolio Management Services) is all about streamlining your investments, in a personalized way that caters to your unique wealth-building strategy.

India is witnessing the rapid rise of High Net worth (HNI) individuals who are demanding diversification above and beyond their traditional investments. And so the PMS industry, expected to grow 20-25% each year, has fast become their go-to choice for large-scale investments.

Your portfolio is managed by highly knowledgeable and professional PMS fund managers with decades of experience.

You can check the stock holdings within your Equity PMS portfolio in your own Demat whenever you wish.

With our PMS expertise, it’s possible to gain suitable, consistent returns with the rick also being managed well.

Why PMS?

PMS Products We Offer

Balancing value and growth strategies via multi-cap investing in emerging companies with a sound, sustainable business model.

Investing with an international vision, in multi-national corporations (MNCs) - focusing on consistency in returns and risk moderation.

Carefully creating a long-term wealth building journey with multi-cap investments in 15-20 strong companies entering their next up-cycle in business - for the ones seeking aggressive risk rewards.

Diversifying your portfolio with dynamic multi-asset ETF investments across equity, gold, bonds, and more - your new, all-in-one investment.

Trusted legacy

Trusted legacy

The Anand Rathi group came into existence close on the heels of economic liberalization. With an aim to channel the newfound hope and financial optimism into tangible results, Mr. Anand Rathi and Mr. Pradeep Kumar Gupta laid the foundation of the Anand Rathi Group in 1994. From setting up a research desk in 1995 to initiating Digital Wealth Management in 2017, Anand Rathi Group has always kept the client at the center of their plans. An unwavering focus on ethics, entrepreneurial zeal, and innovation has helped the group thrive over the years.

why invest through PMS?
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When one can Invest directly in stocks, why invest through PMS?

Mayur Shah
Fund Manager
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What are Portfolio Management Services?

Portfolio Management Services (PMS) are customized investment solutions offered primarily to High Net Worth Individuals (HNIs), where a professional portfolio manager manages an investor's portfolio of securities on their behalf.

Based on the investor's financial goals, risk appetite, and investment horizon, the portfolio manager designs and implements an appropriate investment strategy. The portfolio is actively monitored and periodically rebalanced in response to market conditions and investment opportunities to generate long-term capital appreciation.

The minimum investment required to avail PMS services in India is ₹50 lakh, as prescribed by SEBI.

How Does Portfolio Management Service Work?

Portfolio Management Services (PMS) work by assigning a professional portfolio manager to handle clients' investments personally. They later assess their goals and risk levels and suggest a strategy for PMS investment.

  • Understanding Client's Profile — The process starts with a detailed assessment of their investment goals, risk appetite level, and investment horizon. This helps determine the type of PMS strategy that aligns with what they want to achieve.
  • Role of the Portfolio Manager — Once their profile is understood, a dedicated portfolio manager takes charge of your investments. This fund manager is responsible for selecting suitable assets, managing risk, and making buy or sell decisions based on market opportunities.
  • Choice of Strategies — PMS offers multiple investment styles, including growth, value, multi-cap, sector-focused, and similar strategies. A basket of stocks/assets is created by a fund manager, which forms a strategy. The client can select the PMS approach that matches their objectives. However, it can vary across the providers.
  • Transparency in their Portfolio — Unlike mutual funds, the securities purchased (such as stocks, bonds, ETFs, or other instruments) are held directly in the client's name, giving them full transparency over their investments.
  • Active Decision-Making — The manager continuously tracks markets and uses research-driven insights to adjust the portfolio. These decisions aim to enhance alpha while staying aligned with their investment strategy.
  • Tracking and Reporting — As an investor, a client has complete visibility into their portfolio at all times. In addition, they receive regular performance updates (usually monthly or quarterly), so they can clearly understand how their investments are progressing.
  • Fee Structure — PMS typically includes fixed and performance-based fees. It is usually 2.5% per annum or less, though it can vary across funds. Likewise, performance-based fees may apply, but again, it depends upon the AMC. Do check the fee structure before making the final decision.

Types of Portfolio Management Services

Based on the fund manager's involvement, there are three major types of Portfolio management services in India: Discretionary, Non-discretionary, and Advisory PMS.

  1. Discretionary PMS — In a discretionary PMS, the portfolio fund manager has full authority to make investment decisions and execute transactions on behalf of the client, based on the agreed investment mandate. It is the common PMS type in India because it offers convenience and professional, research-backed decision-making.
  2. Non-Discretionary PMS — Here, the fund manager only recommends investment ideas, but the final decision rests with the client. The manager executes buy or sell orders only after the client's approval. This type suits investors who want professional guidance but still prefer to stay actively involved in decision-making.
  3. Advisory PMS — In advisory PMS, the fund manager provides detailed advice on asset allocation, stock selection, and strategy, but does not execute any transactions. The client is responsible for implementing the recommendations through their own trading or demat account. This option is ideal for investors who want professional insights while retaining complete control over execution.

Objectives of Portfolio Management Services

At a broader level, Portfolio Management Services (PMS) in India are designed to achieve four core objectives:

  • Professional Portfolio Management — Dedicated and active management of their investments by seasoned professionals.
  • Alpha Creation — Strategies focused on generating returns beyond standard market benchmarks.
  • Expertise — Access to experienced fund managers, in-depth research, and informed decision-making.
  • Risk Management — Structured allocation, continuous monitoring, and disciplined controls to manage downside risk.

Key Benefits of Portfolio Management Services

  • Professional Portfolio Management Services — Your investments are actively managed by experienced professionals through structured PMS services.
  • Expert-Led Stock Selection — When you invest in PMS, be assured, since every stock is backed by in-depth research and market expertise.
  • Alpha-Focused PMS Investment Strategies — Designed to generate returns beyond standard market benchmarks, making PMS investment suitable for long-term alpha creation.
  • Transparency and Regular Reporting — Clear visibility into portfolio performance is a key feature of reliable PMS services in India.
  • Active Risk Management — PMS fund managers continuously monitor portfolios to manage downside risk during volatile market phases.
  • Designed for Investors with ₹50 Lakh+ — PMS is structured for investors ready to move beyond standard products and take a more strategic approach to wealth.

Who Should Consider Investing in Portfolio Management Services?

For Investors Who Value Strategy, Structure, And Expertise

  • High Net-Worth and Ultra High-Net-Worth Individuals seeking regulated portfolio management services in India.
  • Investors with ₹50 lakh or more looking to invest in PMS as a long-term wealth strategy.
  • Investors who prefer professional management over direct market involvement for their portfolio.

PMS vs Mutual Funds: Key Differences

Confused between PMS and Mutual funds? Here's a clear comparison.

Aspect Portfolio Management Services (PMS) Mutual Funds
Minimum Investment ₹50 lakh and above (as per SEBI guidelines) Mutual funds SIP starts from ₹100, and lump sum starts from ₹1000.
Investment Approach Concentrated, high-conviction portfolios* Diversified across many stocks*
Ownership Direct ownership; as securities (like stocks) are held in the client's demat account. Units are held in a pooled mutual fund trust (allocated in unit form).
Customization Strategy-driven portfolio management Standardized investment schemes
Fund Management Style Actively managed with flexibility* Largely benchmark-driven*
Transparency Full visibility into portfolio holdings Periodic disclosure of holdings
Suitability Designed for HNIs and UHNIs Suitable for retail and mass investors

(Note: * indicates that this applies in most cases.)

How to Start Investing in Portfolio Management Services

Planning to Invest in PMS?

Here's how you can avail portfolio management services in India:

  • Check Eligibility — Ensure you meet the minimum investment requirement of ₹50 lakhs before opting for any portfolio management services in India.
  • Choose a SEBI-Registered PMS Provider — Select a regulated firm offering PMS services with a clear investment philosophy and track record.
  • Understand the Investment Strategy — Review the approach, risk framework, and suitability before you invest in PMS.
  • Complete Documentation and Onboarding — Fulfill KYC, agreements, and account opening formalities as part of the PMS investment process.
  • Fund the Portfolio and Get Started — Once onboarded, capital is deployed as per the selected strategy and managed professionally.

Documents Required & Eligibility Criteria for PMS Investment

Investing in a Portfolio Management Service (PMS) is a step toward personalized wealth management. Before you start investing, ensure you meet the eligibility criteria and have the necessary documents ready.

Eligibility Criteria

  • Investor Type: Primarily for High Net-Worth Individuals (HNIs) and Ultra High Net-Worth Individuals (UHNIs).
  • Age: Must be 18 years or older.
  • Investment Capacity: Typically, a minimum investment of ₹50 lakh or as specified by the PMS provider.

Documents Required

  • Proof of Identity: PAN card, Passport, Aadhaar, Voter ID.
  • Proof of Address: Passport, Aadhaar, Utility Bill, or Bank Statement.
  • Bank Details: Canceled cheque or bank statement.
  • Income Proof: Latest ITR, Salary Slip, or Form 16.
  • KYC Documents: Completed KYC Form as per SEBI regulations.
  • Other Documents: As requested by the PMS provider for account opening and compliance.

Portfolio Management Services for NRIs

Non-Resident Indians (NRIs) can invest in Portfolio Management Services (PMS) in India, subject to compliance with SEBI, RBI, and FEMA regulations, along with completion of KYC and tax requirements.

  • Investment Route — PMS Investments can be made through NRE or NRO bank accounts.
    • NRE Account: Fully repatriable investments and returns
    • NRO Account: Repatriation subject to RBI-prescribed limits
  • Available PMS Strategies — NRIs can access discretionary and non-discretionary PMS strategies, including equity-focused, thematic, and multi-asset portfolios, depending on regulatory approvals.
  • Taxation & Compliance — Capital gains and dividend income are taxable in India, with applicable TDS. Any relief under DTAA (Double Taxation Avoidance Agreement) may be available, subject to eligibility and documentation.
  • Things to Keep in Mind — NRIs should consider minimum investment thresholds, tax complexity, currency risk, and country-specific compliance requirements before investing in PMS.

Taxation Rules for Portfolio Management Services in India

Investing in a Portfolio Management Service (PMS) comes with specific tax rules that every investor should know.

  1. Short-Term Capital Gains (STCG) — Gains from equity holdings sold within 12 months are taxed at 20% STCG (as per the Budget 2025 tax regime).
  2. Long-Term Capital Gains (LTCG) — Gains from equity holdings sold after 12 months are subject to 12.5% LTCG for amounts exceeding ₹1 lakh per financial year. Note that there is no indexation applicable to PMS.
  3. Dividend Income — Dividends received from your PMS portfolio are added to your income and taxed as per your income tax slab rate.
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What our Customers have to Say

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I am a client of Anand Rathi Portfolio Management Service (PMS) and mutual fund services for the past 2-3 years. I am very happy & extremely satisfied with the services and portfolio performance provided by them. Read More

Kunal Bhatia, Dubai
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I am extremely happy seeing the way our portfolio is being managed by Mayur Shah at Anand Rathi. Even though the portfolio management service was started during the peak in 2019 post which the markets Read More

Kamal Kishore Harkut, Telengana
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I am highly delighted with not just the performance of my portfolio management service but also the way I am treated and all my queries and requirements are catered to on high priority. Read More

Santosh Gawande, Pune

FAQs on Portfolio Management Service

What fees and charges apply to PMS investment?

PMS may charge management fees (up to 2.5% p.a), performance fees, or applicable taxes as per the chosen strategy.

What happens if my Portfolio Manager changes or leaves the PMS firm?

In the event the portfolio manager leaves or is replaced, the client’s portfolio will remain with the PMS firm and be reassigned to another SEBI-registered portfolio manager without disruption.

Can PMS invest in global markets?

Yes, a few PMS strategies out in the market invest in international markets subject to SEBI guidelines and RBI limits.

Can I withdraw funds from a PMS account?

Partial or full withdrawals are permitted, subject to exit terms, liquidity, and tax implications. However, this partial withdrawal is only allowed up to a certain limit. For instance, a client can withdraw ₹10 lakhs from a portfolio of ₹60 lakhs, as an investment of ₹50 lakhs must be maintained.

How is PMS performance measured?

PMS performance is measured through absolute returns, benchmark comparison, alpha generation, and other risk-adjusted metrics.

How do I choose the PMS provider in India?

Before choosing a PMS provider in India, evaluate the provider's track record, the fund manager's investment philosophy, risk management practices, and reporting transparency.

What is the role of a Portfolio Manager in PMS?

The portfolio manager is to design an investment strategy, manage the investments, and rebalance the portfolio to generate risk-adjusted returns.

What is the minimum investment required for PMS in India?

SEBI mandates a minimum investment threshold of ₹50 lakhs per investor across all PMS strategies.

How is PMS different from mutual funds?

PMS offers professional management, and holdings are held directly in the investor's name, unlike pooled and standardized unit-based mutual fund schemes.

What types of PMS services are available in India?

PMS services include discretionary, non-discretionary, and advisory models based on investor involvement.

Can NRIs invest in Portfolio Management Services?

Yes, NRIs (Non-Resident Indians) can invest in PMS subject to FEMA regulations, PIS compliance, and bank approvals.

What is the difference between discretionary and non-discretionary PMS?

Discretionary PMS allows managers to act independently, while non-discretionary PMS requires investor consent.

How can I start investing in PMS online?

One can start by looking for PMS providers in India, consulting them for more guidance, completing KYC, documentation, and onboarding through a PMS provider or authorized intermediary.

Are Portfolio Management Services tax-efficient?

PMS follows direct equity taxation rules, and efficiency depends on holding period and tax treaties (if any).

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