Portfolio Management Services

Customised Portfolios, Managed by SEBI-Registered Portfolio Managers

Discretionary portfolios built around a manager's strategy and held in your own demat account. We help you compare strategies, fees and disclosures before you commit.

At a Glance

Risk level

High

LowVery High

Minimum investment

₹50 lakh (SEBI minimum), in cash or eligible securities

Tenure / liquidity

No fixed lock-in; a 3–5+ year horizon is generally suggested. Exit loads may apply in the early years, as per the agreement.

Who it's for

High-net-worth investors with ₹50 lakh or more to commit to equities
Investors who want a concentrated, actively managed portfolio
Those comfortable with higher volatility over a 5+ year horizon
Investors who value seeing every holding in their own demat account

Key features

Discretionary management by a SEBI-registered portfolio manager
Securities held directly in your name, not as units of a pooled fund
Strategy choice: multicap, midcap, smallcap, focused or thematic
Fixed, performance-linked or hybrid fee structures
Periodic statements and full portfolio visibility

Taxation snapshot

Securities sit in your own demat, so each buy and sell is taxed in your hands as if you held the shares directly
Listed equity: STCG (held up to 12 months) 20%; LTCG (over 12 months) 12.5% on gains above ₹1.25 lakh a year
Dividends received are taxed at your slab rate
High churn can mean more short-term gains — ask about the strategy's turnover

Tax treatment as per current law and subject to change; please consult a qualified Chartered Accountant before investing.

The Basics

What Is a PMS?

Portfolio Management Services (PMS) is a SEBI-regulated service in which a registered portfolio manager manages a portfolio of securities on your behalf, under the SEBI (Portfolio Managers) Regulations, 2020. Unlike a mutual fund, you do not buy units of a pooled scheme — the shares are bought and held in your own demat account.

Most PMS strategies are discretionary: the portfolio manager decides what to buy and sell within the strategy's stated mandate. Because portfolios are often concentrated and actively managed, outcomes can differ widely from the market and from other investors in the same strategy. WealthBay is not a portfolio manager; we help you access and compare strategies offered by SEBI-registered portfolio managers.

Strategy Types

Common PMS Strategies

Each strategy's mandate, benchmark and risk factors are set out in the portfolio manager's Disclosure Document.

Multicap

Invests across large, mid and small companies, giving the manager flexibility to shift between market-cap segments as views change.

Midcap

Focuses on mid-sized companies that may have room to grow. Typically more volatile than large-cap portfolios and can underperform for long stretches.

Smallcap

Concentrates on smaller companies. Potential for higher growth comes with higher volatility, lower liquidity and larger drawdowns.

Focused

Holds a small number of high-conviction stocks. Concentration means a few holdings can drive most of the outcome, in either direction.

Thematic

Built around a theme or sector, such as consumption, manufacturing or financials. Returns depend heavily on how that theme performs.

Minimum Investment

₹50 Lakh Minimum Ticket

SEBI prescribes a minimum investment of ₹50 lakh per client for PMS. You can usually invest this in cash, by transferring existing eligible securities, or a combination — subject to the portfolio manager's acceptance.

Cash

Fund the account with money; the manager builds the portfolio as per the strategy.

Existing Securities

Transfer shares you already hold. The manager may retain or sell them, which can have tax consequences for you.

Combination

A mix of cash and securities, provided the total meets the ₹50 lakh minimum at onboarding.

Fee Structure

How PMS Fees Work

Fees differ by portfolio manager and strategy and are agreed in writing before you invest. Compare them alongside the strategy, not in isolation.

Fixed Fee

A fixed annual management fee charged as a percentage of the portfolio value, regardless of performance.

Predictable cost
Charged even when the portfolio falls
Usually billed quarterly

Performance-Linked Fee

A lower (or no) fixed fee plus a share of profits above a hurdle rate. A high-water mark generally means performance fees are charged only on gains above the portfolio's previous peak value, so you do not pay twice for recovering the same losses.

Hurdle rate: minimum return before profit sharing
High-water mark protects against paying twice
Fee depends on the agreed calculation period

Hybrid Fee

A combination of a fixed fee and a performance-linked fee. Often the fixed component is lower than in a pure fixed-fee plan.

Mix of fixed and profit-sharing fees
Check how the hurdle and high-water mark apply
Exit loads and other charges may apply

Compare

PMS vs Mutual Funds

Aspect	PMS	Mutual Fund
Minimum investment	₹50 lakh (SEBI minimum)	SIP from ₹100–500, depending on the scheme
Ownership	Securities held in your own demat account	Units of a pooled scheme
Customisation	Some flexibility (e.g. excluding certain stocks), per agreement	None — same portfolio for all unitholders
Concentration	Often concentrated in fewer stocks	Diversified within SEBI scheme rules
Fees	Fixed, performance-linked or hybrid; charged to your account	Total expense ratio (TER), built into the NAV
Taxation	Each transaction taxed in your hands	Tax arises when you redeem units
Regulation	SEBI (Portfolio Managers) Regulations, 2020	SEBI (Mutual Funds) Regulations, 1996
Liquidity	Can withdraw; exit loads may apply in early years	Open-ended schemes redeemable on any business day, subject to exit load

Performance

Strategy Performance Snapshot

Every portfolio manager publishes strategy performance in its disclosures. We share it alongside the benchmark so you can compare like with like.

Strategy	Portfolio Manager	Benchmark	1 Year	3 Years	Since Inception
Strategy-wise performance is shared on request along with the portfolio manager's Disclosure Document.

Past performance is not indicative of future returns. Performance figures are as reported by the portfolio manager, may not reflect any individual client's returns, and should be read with the benchmark and the Disclosure Document.

Our Role

How WealthBay Helps

WealthBay helps you access PMS strategies offered by SEBI-registered portfolio managers. We are a distributor, not a portfolio manager or investment adviser, and we may receive a commission from the portfolio manager.

Before you invest, we walk you through the Disclosure Document, the fee schedule and the client agreement so you know exactly what you are signing up for.

Shortlisting strategies that match your risk profile and horizon

Side-by-side comparison of fees, hurdle and high-water mark terms

Disclosure Document and client agreement walkthrough

Onboarding, KYC and demat / account opening support

Periodic review of statements and performance reports

Key Risks

Risks to Understand Before Investing in PMS

PMS portfolios invest mainly in listed equities and are exposed to market risk. The value of your portfolio can fall below the amount you invested.

Concentrated portfolios can be more volatile than diversified mutual funds.
Mid- and small-cap holdings may have lower liquidity, especially in falling markets.
Your returns can differ from the strategy's reported performance because of entry timing and fees.
Performance-linked fees can be significant in strong years.
Read the Disclosure Document, client agreement and fee schedule before investing.

How to Invest

1
Profile & Shortlist
We discuss your goals, horizon and risk appetite, and shortlist PMS strategies from SEBI-registered portfolio managers.
2
Review Documents
Read the Disclosure Document, fee schedule and client agreement with us, and compare strategies like for like.
3
Onboard & Fund
Complete KYC and account opening with the portfolio manager, then fund the account with cash or eligible securities (₹50 lakh minimum).

Have questions about Portfolio Management Services (PMS)?

Speak to our team — no obligation. We'll explain the options, risks and costs.

Talk to an Advisor WhatsApp +91 93809 44718

FAQs

Common Questions About PMS

What is the minimum investment for PMS?

SEBI prescribes a minimum of ₹50 lakh per client. This can usually be invested in cash, in eligible existing securities, or a combination, subject to the portfolio manager's acceptance.

Who holds the shares in a PMS?

The securities are held in a demat account in your name. You can see every holding and transaction in the statements you receive.

Is PMS better than a mutual fund?

Not necessarily. PMS offers a more concentrated, individually held portfolio, but with a much higher minimum, potentially higher fees and different tax treatment. Some investors use both. The right choice depends on your goals, amount and comfort with risk.

What are a hurdle rate and a high-water mark?

A hurdle rate is the minimum return the portfolio must earn before a performance fee applies. A high-water mark generally means a performance fee is charged only on gains above the portfolio's previous peak value. Exact terms are in your agreement.

Can I withdraw money from a PMS?

Yes, you can usually withdraw in part or in full, but exit loads may apply in the early years and sale of securities can trigger capital gains tax. Check the client agreement for the exact terms.

Disclaimer: PMS is not a SEBI-guaranteed product. Returns are not assured. Read the Disclosure Document before investing. WealthBay acts as a distributor and does not manage portfolios; investment decisions are taken by the SEBI-registered portfolio manager.

WealthBay Private Limited — AMFI-registered Mutual Fund Distributor, ARN-29566. WealthBay acts as a distributor of third-party financial products and earns commissions from product providers. Please read all scheme / offer documents carefully before investing.