Top PMS Schemes

Motilal Oswal

Founders

Multi cap & Flexi Cap PMS Scheme

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ICICI Prudential

PIPE Strategy

Small & Mid Cap PMS Scheme

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Motilal Oswal

Mid to Mega Strategy

Small & Mid Cap PMS Scheme

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Buoyant

Opportunities Strategy

Flexi Cap PMS Scheme

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Motilal Oswal

India Growth Strategy

Multi cap & Flexi Cap PMS Scheme

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ICICI Prudential

Contra Strategy

Multi cap PMS Scheme

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Frequently Asked Questions (FAQs)

1. What is PMS Investment?

A Portfolio Management Service (PMS) is a specialized investment vehicle where a professional portfolio manager creates and manages a tailored portfolio of stocks, fixed income, and other structured products. Unlike Mutual Funds, where you own "units" of a fund, in a PMS, you own the underlying securities in your own individual Demat account.

It is essentially a "private fund" feel where the manager has the leeway to be more concentrated and aggressive than a typical retail fund.

2. Who should invest in PMS?

While the regulatory entry barrier is the most obvious filter, Portfolio Management Services (PMS) are specifically designed for a certain profile of investor. Beyond simply having the capital, a PMS investor usually fits the following criteria:

1. High-Net-Worth Individuals (HNIs)

Due to SEBI regulations, the minimum investment is ₹50 lakh. This makes it a product for investors who have a substantial surplus and for whom this amount represents only a portion of their total investable wealth, rather than their entire life savings.

2. Investors Seeking "Alpha" (Market Outperformance)

Mutual Funds are often "closet indexers," meaning they stay close to the benchmark to avoid huge losses. PMS managers, however, run concentrated portfolios (often just 15–25 stocks). This is for the investor who is willing to move away from the "safety" of a broad index in hopes of significantly higher returns.

3. Those Who Want Direct Ownership

In a Mutual Fund, you own units of a pool. In a PMS, you own the actual shares in your own Demat account. This is ideal for investors who:

Want to see every trade in real-time.
Want the dividends from those stocks credited directly to their bank account.
Value total transparency over their holdings.

3. How is PMS different from mutual funds?

1. Ownership and Structure

Mutual Funds:

You own "units" of a pooled fund. The actual shares are held by the fund house (AMC) in a trust.

PMS:

You own the actual shares directly. These are held in a separate Demat account in your name. You can see every stock, dividend, and trade in real-time on your dashboard.

2. Portfolio Concentration (Risk/Reward)

Mutual Funds:

Regulated to be highly diversified (usually holding 50–100 stocks). SEBI rules prevent them from putting too much money into a single company.

PMS:

Can be highly concentrated. A manager might put your entire investment into just 15–20 high-conviction stocks. This leads to higher "Alpha" but also higher volatility.

3. Taxation Efficiency

Mutual Funds:

Very tax-efficient. The fund manager can buy and sell stocks inside the fund every day, and you pay zero tax until you actually sell your units.

PMS:

Every time the manager sells a stock to book profit, it triggers a tax event for you. You are liable for Capital Gains Tax in the same financial year the trade happened.

4. Customization and Control

Mutual Funds:

No customization. If the fund manager buys a tobacco stock you dislike, you can't stop it.

PMS:

Offers exclusion lists. For example, if you work at a bank, you can instruct your PMS manager not to buy that bank's shares to avoid "over-exposure."

Feature	Mutual Funds	PMS
Min. Investment	₹100 – ₹500 (SIP)	₹50 Lakhs
Fees	Total Expense Ratio (capped)	Fixed Fee + Performance Fee
Transparency	Monthly factsheets	Real-time holdings
Regulation	Extremely high / Strict	High / More flexible
Ideal for	Retail & Wealth preservation	HNIs & Wealth acceleration

Products
"Explore a Complete Range of Investment Products for Every Stage of Your Financial Journey."

Mutual Funds/SIP

Equity IPOs

Bonds/NCD IPOs

Capital Gain Bonds

Fixed Deposits

Unlisted Shares

PMS/AIF

National Pension System

Floating Rate Bonds

Stocks

General Insurance

Life Insurance

Disclaimer :

Past performance of Portfolio Managers/Investment Approaches, including model portfolios, is not indicative of future results and has been obtained from public sources. RR Finance and its representatives make no representation or warranty, express or implied, as to the accuracy, completeness, or reliability of such information. Investors are requested to carry out their own independent due diligence and consult their financial advisors before making any investment decisions. Investments are subject to market risks. Read all scheme related documents carefully.

Top PMS Schemes

Motilal Oswal

Founders

ICICI Prudential

PIPE Strategy

Motilal Oswal

Mid to Mega Strategy

Buoyant

Opportunities Strategy

Motilal Oswal

India Growth Strategy

ICICI Prudential

Contra Strategy

Motilal Oswal

Value Migration

Aditya Birla

Core Equity Portfolio

ASK Investment

ASK Growth Portfolio

Aditya Birla

Innovation Portfolio

Aditya Birla

Select Sector Portfolio

ICICI Prudential

Large Cap Strategy

Aditya Birla

Special Opportunities Portfolio

Motilal Oswal

Multifactor Equity

ICICI Prudential

ACE Strategy

Motilal Oswal

NTDOP

ASK Investment

ASK Strategic Portfolio

ICICI Prudential

Value Strategy

Aditya Birla

Top 200 Core Equity Portfolio

Motilal Oswal

Ethical Strategy

ICICI Prudential

Growth Leaders Strategy

ASK Investement

ASK Domestic Resurgence Portfolio

Neo Asset

Yield Enhancer

ASK Investement

ASK Emerging Opportunities Portfolio

ASK Investment

ASK India Vision Portfolio

ASK Investment

ASK Financial Opportunities Portfolio

Frequently Asked Questions (FAQs)

1. What is PMS Investment?

2. Who should invest in PMS?

1. High-Net-Worth Individuals (HNIs)

2. Investors Seeking "Alpha" (Market Outperformance)

3. Those Who Want Direct Ownership

3. How is PMS different from mutual funds?

1. Ownership and Structure

2. Portfolio Concentration (Risk/Reward)

3. Taxation Efficiency

4. Customization and Control

Products "Explore a Complete Range of Investment Products for Every Stage of Your Financial Journey."

Mutual Funds/SIP

Equity IPOs

Bonds/NCD IPOs

Capital Gain Bonds

Fixed Deposits

Unlisted Shares

PMS/AIF

National Pension System

Floating Rate Bonds

Stocks

General Insurance

Life Insurance

PRODUCTS

SECURITY

INSIGHT

Products
"Explore a Complete Range of Investment Products for Every Stage of Your Financial Journey."