Best Portfolio Management Services (PMS) in India for 2021
Portfolio Management Service (PMS) is professionally managed investment service where an individual need to invest a fixed amount that would be invested across various stocks by PMS experts for higher returns. If you would have invested ₹ 25 Lakhs in Porinju Veliyath PMS 5 years back, your money would have grown to ₹ 1.5 Crores by now. Similarly if you would have invested ₹ 25 Lakhs in Motilal Oswal PMS 5 years back, your money would have grown to over ₹ 1.25 Crores now. What are Portfolio Management Services (PMS)? Which are the Top and Best Portfolio Management Services (PMS) in India for 2020? How these PMS Services in India have performed in the last 5 years. What are services being charged by these PMS Services in India?
Also Read: EPF Vs PPF Vs VPF Vs NPS – Which is best for investment?
What is Portfolio Management Service (PMS)?
As individuals or institutions become richer, they prefer to have customized investment services for them. For this, some opt for Portfolio Management Services or PMS. These are the entities registered with the SEBI market regulator, and offer services to meet specific financial planning of the clients who have quite high potential to invest, say minimum of ₹ 25 lakh. PMS have equity or debt options. Banks, brokers, independent investment managers or asset management companies generally offer these services. The service providers have different model portfolios to the investors which they choose according their financial goals. These models define the types of stocks in which the money would be invested.
There are two types of portfolios in PMS.
1) Discretionary portfolio – In this type of PMS, the service provider has the authority to take decisions, buy or sell stocks on the behalf of client.
2) Non-discretionary portfolio – The service provider can seek advice to the investor but the final decision or authority remains in the hands of investor only.
What are the benefits of PMS Services in India?
The following are the benefits of Portfolio Management Services (PMS).
1) PMS are more aggressive and have the potential to create higher returns. There is no limitation or extent to which you can invest in a certain stock.
2) There is hassle-free management and continuous monitoring of stocks along with in-depth research and study, which is not possible for an individual to manage at a large scale.
3) PMS holdings are isolated and not impacted by other investor s’ actions. In general, investors tend to buy in rising markets and there could be times of panic when they sell in falling markets. This would impact other investors also. But in PMS, you are the sole decision maker.
4) Generally speaking, people who manage their own portfolios buy less of quality and focus more on price rather than value (don’t you agree J). They have a tendency to sell when they make profits and hold on stocks that have depreciated their value. The experienced portfolio managers take wise decisions on your behalf as to which stocks are to be held in long run.
5) Unlike mutual funds, PMS Managers are directly accountable to the client who can seek justification especially in the case of discretionary portfolio.
6) The fee of the service providers is negotiable. Investors can negotiate for lower fees if the portfolio is huge. Mutual funds have fixed percentage fees irrespective of their amount.
Also Read: Top ELSS Mutual Funds to invest in India
Best Portfolio Management Services (PMS) in India for 2021 / Best PMS company in India
Here is the list of Portfolio Management Services in India.
1) Porinju Veliyath Equity Intelligence PMS
Incorporated in 2002, the company has grown into one of the highest buzzing PMS in India with strong value-picking genes. Porinju Veliyath is the founder of Equity Intelligence and is a stock market expert.
Minimum investment required is ₹ 50 Lakhs in Porinju Veliyath EQ PMS.
The approx. returns in the last 5 years are 35% and last 1 year is 47%.
There is no lock-in period for the investments. You can withdraw any time.
There is no entry or exit load in this PMS.
Porinju Veliyath’s Equity Intelligence charges a fixed management fee of 2% per annum, and additional performance fees of 10% of the returns above 10% per annum.
If any investments under this PMS are sold within 1 year, there is tax liability of 15% on profits. If any investment are sold after 1 year, profits received are tax free. Dividends received in PMS for the stocks are tax free.
NRI’s can invest in this PMS on repatriation or non repatriation basis.
Porinju’s EQ PMS is considered as one of the best PMS Services in India.
2) Motilal Oswal Next Trillion Dollar Opportunity PMS (NTDO)
Motilal Oswal is an asset management company that provides PMS also in the name of Next Trillion Dollar Company (NTD). Its strategy is to deliver superior returns by investing in small cap and mid cap stocks.
Good for investors who want to invest for medium to long term (3+ years).
This PMS invests in 20-25 stocks.
Minimum investment required is ₹ 25 Lakhs in this PMS. You can add minimum ₹50,000 as a Top Up (additional investment) in any of your strategy accounts.
The approx. returns in the last 5 years are 32% and last 1 year is 19%.
They charge fixed fees and based on performance of the PMS.
NRI’s can invest in this PMS.
Motilal Oswal NTDO is considered as the 2nd best PMS Services in India which can be considered by invest in 2020-21.
Also Read: Best Midcap Funds to invest in India
3) Birla Sun life PMS
Established in 1994, Birla Sun Life Asset Management Company provides portfolio management services (PMS) with a whole range of investment products. They mainly target those businesses that are priced less than they ought to be and showing promise for high yields. There are different types of portfolios that are categorized according to minimum investment amount, time horizon, and your goal. The following are the portfolios-
a) Core equity portfolio – Minimum ₹ 50 lakh of investment with a time horizon of 1 to 3 years.
b) Customized Debt Portfolio – ₹ 25 Crores or as per SEBI regulations for a tenure of 3 months to 3 years.
c) Select Sector Portfolio – ₹ 25 Crores or as per SEBI regulations for a tenure of 3 months to 3 years.
4) ASK India Select PMS
The ASK group / ASK Investment Managers is a leader in asset management, which caters to the interests of national as well as global investors. With strong research team and robust experts, it takes special care to minimize risk while extending quality growth. It offers a wide variety of asset classes, which include large cap, mid-cap, small-cap, multi-cap, value and growth and international assets.
a) Fixed fee – They would charge 2.5% of portfolio value as fixed fees pear year. This fee is charged separately from the actual expenses like brokerage fee, custodian expenses etc.
b) Performance-linked fee – There is a fixed fee of 1.5% of portfolio + along 20% of gains to be paid to them over and above 10% of profits.
There are some negative feedback by some of the ASK investment investors saying their investment has reduced within 1-2 years. As indicated, one should not check performance of PMS schemes in short term. Like mutual funds, even PMS has to be invested atleast for medium term of 3-5 years.
Some Important Facts and Limitations of PMS Services in India
1) PMS requires minimum of ₹ 50 lakhs (as per recent guidelines in Nov-2019). Now, think how many people Invest more than ₹ 50 Lakhs in mutual funds? Answer – Millions of investors. Why don’t they go and have a PMS instead?
2) A mutual fund house manages anywhere from ₹ 1.5 Lakh crore to ₹ 10,000 crore. In contrast there is hardly any PMS provider who manages more than ₹ 4,000 Crore. why? Who do we think can have better fund management talent and practices?
3) A mutual fund is formed as a trust and does not pay taxes on short term capital gains, thus, can churn and try to generate alpha by not worrying about taxes as well as churning costs. Why would you want to pay capital gains tax of 15 percent plus surcharge on these in a PMS?
4) There are trustees, auditors and SEBI operational and investment risk management rules to ensure that investment process are fiduciary in nature. In simple words, you don’t have to bother about if the transactions were in your best interest. In PMS, while there is transparency to see what happened to your money, you may have to keep occupied in the data to ensure if what ever happened was in your best interest.
5) PMS can be tailored to individual risk profile which is not possible in MF.
6) PMS managers tend to churn your portfolio very often to book quick profits so that they can show that in their performance. By doing this, they also get more brokerage if PMS is from brokerage house.
7) PMS share only profits, but not the losses and this is biggest anomany.
8) There is certain minimum investment (about 15 Lakhs) and their target is usually high net worth individuals.
9) PMS cost is higher than MF.
10) PMS manager does not care about taxation (capital gains) and thus post tax returns can be lower if the PMS manager has churned the portfolio often which results in short term capital gains.
Also Read: How we can buy Best Mutual Funds through Motilal Oswal Target Investment Plan (TIP)?
Should you opt for PMS Services in India?
My answer is NOT straight yes. PMS Services provide professional help in growing money by investing in stocks with an amount of ₹ 50 Lakhs. However, mutual funds can also provide good returns in medium to long term. Selecting some of the top performing mutual funds can also achieve such goals. If you don’t have time and cannot do your own analysis and want to invest in investment schemes other than mutual funds, you can opt for Portfolio Management Services (PMS) in India.
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I am looking to invest through Motilal PMS. Any suggestion on this?
Thank you for this informative post.
I am planning to invest Rs. 25 lakh In ASK India vision portfolio PMS Please advice .
Is my choice is correct ,? Your valuable suggestion is requested.
IEP is better
Thank you for this informative post. From the above list according to me Motilal Oswal offers best Portfolio Management Service in India.
Hi, thanks for this best portfolio management services (PMS) in India article. This is surely going to help people who are interested in and also for the knowledge of PMS. PMS in India schemes offer a wide range of attractive features and promises for returns, they also have certain risks which only sophisticated wealthy individuals can tolerate. Even these investors must carefully consider their options before taking an investment decision.
Ihave a investment of Rs 25 LAKHS now. can I to up by Rs 1 to 5 lakhs from time to time?
Hi ! pls. send details on AIF [ Alternative Investment Fund ] How it works ? who are the Managers ?
This is good article and gives lot of information. There is one question remains unanswered- if you have to invest more than 20 laughs, what should be right choice PMS or MF specially when market is at its peak and is difficult for even PMS fund managers where to put your money. if you buy mutual funds in lump sum it could also be a mistake, may be in short term. one positive with pms could be that there are still undervalued stocks which pms fund manager can buy it for you and it could be a good profit. Kindly suggest with this kind of scenario.
Want to know about LFS Broking
I like the way you have described best Portfolio Management Services aims to offer assistance in delivering long term growth to investors.
Please inform me about LFS BROKING’s Pms
not good…..stay away from all pms service
Hi, thanks for this best portfolio management services in India article. This is surely going to help people who are intrested and also for the knowledge of PMS. keep sharing such information.
Hi, Thanks for the article. One doubt though –
These returns mentioned – is it the NET returns ? That is – is all the fees considered & reduced before arriving at the returns%?
LOOKING TO INVEST 25 -30 lacS.
ALSO NRI PMS BEst plans
very simple i can help you out . reach me at – Azif azif619@gmail.com
mr. suresh
thanks for reply
yes i am ready to take market risk by long investment period. but how to overcome/ensure the efficiency and trustworthiness of every individual PMS.
Joseph
Hi Joseph, The info provided on this article is based on the information available on their website. Some times it may not be 100% accurate. However, you go ahead with any of the PMS indicated here as you are high risk investor
would like to invest 50L initial amount + 2 L monthly and 15L in every 6 months in India. I am NRI of 48 years old working Kuwait. Would like to retire by 60 (i,e, by 2030).
Please suggest me a financial investment plan
Regards
Joseph Kattupalath
Hi Joseph, What is your risk appetite ? Since you commented on Best PMS article, I am assuming that you are high risk taker. You can invest in any of the PMS schemes indicated here.
Good
Thank you for the above article
How is equitics for pm service?
Its not PMS. they just do stock recommendations
I am interested
Hi suresh,
Can you please update the post with new taxation rules? You have mentioned profit after one year are tax free. It is no longer applicable.
Please send me advise
You can review any of these and call their customer service numbers Sathyarao
I want to invest in Narnolia securities ltd india 3t pms.Kindly give suggestions .
Requested factsheet to understand their history lets see.
i want PMS IN Credent Asset Management Services Pvt. Ltd. IS THAT GOOD
It is advisable to do a proper research of the Portfolio Management firm or the Portfolio Manager before choosing them. Also do not blindly trust on the reports that they show as it may include inflated numbers.
Hi Suresh
i want to invest 25Lac I need your suggestions, in which PMS should I invest and what about the authenticity. Kindly guide.
Hi Shailesh, Pls check the article about features which can help you to take decision
Hi
What is your opinion about ICICI Flexi cap PMS?
Is it good toInvest?
I would like to invest in ASK India select PMS. kindly give any good suggestion/idea for me.
maynot be a good idea not heard good about them.
HI,
Any suggessions on IIFL PMS. I am planning 30Lak investment this month
Hi,
I am looking for investing 30Lak in IIFL PMS. Any suggessions
All registered pms needs minimum investment of 25 lakhs.
All top class category pms like Sageone minimum is 2 crores, Most of the pms like equity intelligence and motilal oswal or alchemy needs 50 lakhs min
still there are few works for 25 lakhs. For smaller amount like 5 to 10 lakhs private companies operates your account and gets some service charges.
If you need any details of pms please feel free to contact me
hello mr suresh,
I am thinking of inveting 25 lac in pms of kotak Mahindra. can you suggest if it is ok to go ahead with it and if have good reputation in managing the funds. thanks
Hi Rajesh, Limited Info is available about Kotak Mahindra Info, hence not able to comment
Hi Rajesh
I would be more than happy to help you in your search of right PMS
Abhijit
Hi Rajesh, PMS is a specific product. Normally the banks performance in pms is not that great. Feel free to contact me if you need any further info.
I want to invest rs.5.oolack to 10.00lacks through pms. wich pms suitable for me
It is not possible , dont fall into any trap of such kind
Hi sureshji, I am fan of ur analysis last 5 yrs I like ur efforts. I need to park 10 lakhs in PM’s all are need 25 lk I mailed to equity Inc porienju and anand rathi.they need 50 lk. Arvind Baja looks good and friend in equity market also suggested. What’s ur opinion.
Require p ms SEBI registered
Hi suresh, thanks for your post and it has lot of information about PMS.
I am planning to invest 25 to 30L through PMS service. I have come across Right horizons as a service provider for my investments. Is there any way that i can find the performance of their investments for past 5-10 years. Also suggest me is this the right company or not.
Hi Kiran were you able to find if Right horizons service is good? and if their performance track is good?
I have financial planning with Right horizons, from my experience they mostly push mutual funds distribution even if you ask for equity.. please share what you find.
Thank you for the article Mr. Suresh. Am looking for good PMS and found your article right on time. I'm planning to invest 30L – 50L in equities for my retirement with investment horizon 15+ years.
Thank you Siva
Hello All
From the above article it is very clear , both PMS or MF deliver same returns.The difference between two of them is in PMS its solely decision of the PMS provider.
MF , we can decide .Partial Withdrwal is there in MF .Lot of flexibility is there .
How about Kotak mahindra PMS is it worth investing
Hello pauls M I
Pms is anyway a worth one.selection of pms from a firm will be your choice.Each share market gives different returns and the minimum amout will also be different.So enquire about the firm which you like to invest through queries and decide your investing firm.
I am really confused about investing my hard earned money in mutual fund or Pms. I am not a big risk taker. I usually invest in Bank FD’s .I want my money to grow. Please help me with a genuine advice.
Hi Asif, In such case, you should go for mutual funds. Invest in diversified portfolio consisting of large capl, midcap/smallcap, diversified, balanced funds. Refer this article . https://myinvestmentideas.com/2017/10/top-10-best-mutual-funds-for-sip-to-invest-in-2018/
longer u stay better are the returns..pms or mf..pms will outperform ..
PMS services are good no doubt, but more light should be thrown on comaring them with MFs. If there is no real advantage, its no use talking about these products. How do PMS services score higher than Mfs and vice versa is the real discussion not the ticket size involved or type or net worth of the customer.
How is this PMS from Axis Bank?
AXIS Brand Equity Portfolio
Reveendran
Hi Suresh,
You have mentioned return 1.5 cr and 1.25 cr are after deducting pms service fee >>> isn't …?
thats correct
What about online platforms which invest in mf like arthayantra,invezta,fundabazar etc
Raghvendra Arthayantra as an example mainly focus on financial advisor and others do not form part of top 10 list.
Suresh – Very well written article.
I agree with you that very few people have such a big corpus to invest. Morever, even if they have suchc a huge corpus – they can split it to different fund managers by investing small amounts in different Mutual funds.
Portfolio Management is advisable if you have a huge corpus and you are only investing a part of the same in PMS.
Thank you Karan for your valuable comments
Dear Suresh,
Very Informative articale. I am learning in this field and this articale completly giving me new information.
Thank you for the good information.
Kind Regards,
Dominic
Thank you Dominic. Where are you investing these days, stocks or mutual funds or IPOs?
Mr. Suresh its a nice information, i have a query can I provide this service (PMS) if yes how? please suggest.
Hi Ajay, You need to first register as “Portfolio Manager” with SEBI, then you can proceed with PMS Service. Refer this link at SEBI.
Hi Suresh,
Can you share your views about SHEPERD's HILL (https://www.shepherdshill.in/) PMS?
Regards
Jayesh
There is limited information available in public domain, hence not able to review it.
Thanks for great informative article
i know few brokerage house also do PMS with less ticket size ranging from 3-10L with similar fees and profit sharing
Are you planning to cover those in article?
how different they are in terms of risk n returns?
Hi JRC, The information is not available in any public place, hence difficult to compare such small PMS Service companies
Yes 100% safe, its important to choose the right PMS with a horizon of atleast 2–3 yrs, anything less will be too early to comment.
Nonetheless the stocks markets are always subject to risk however long run you can certainly make decent returns.
personally invested with pms over 4 yrs now and well benefited with very good gains of more than 5x..
Dear sir,
Kindly make an article regarding small saving schemes option in banks . thanking you.
K.Angappan,Vellore.
Sure Angappan
Hello Sir,
I want to learn vlaue investing. Please suggest best way.
Dear Sir,
Thanks for the writeup. We can go with PMS provided if they reduce the minimum requirement fees of
Rs.25 lacs to 10-15 lacs considering the small/medium investors. Since the performance yield from your write up shows considerable profit for our money invested with them, we may go with them instead of taking our own decision which is not possible due to lack of time, follow up and other constraints.
S. Ravi Chandiran
I agree Ravi. Thanks for your valuable comments.
Great insight on PMS sir…Recently heard about this term PMS and your article gave more insight. Though I'm not going to invest in PMS (Not that rich to invest 25 Lakhs 🙂 ) great learning.
Sivaraman, One day you would ask a question to me “which PMS Service is better, I want to invest through PMS”. I wish that day should come soon.