Wealth Services

Best PMS in India: How to choose top portfolio management services & funds

By Tata Capital
24 February 2026
9 mins read
3126

The landscape of investment opportunities is becoming increasingly complex. From stocks and bonds to mutual funds and real estate, the choices are seemingly endless. To navigate this intricate world, many turn to Portfolio Management Services (PMS). But, what is portfolio management? And how can it help streamline your investment strategy?

This guide will provide a comprehensive overview of portfolio management, its key benefits and essential factors to consider when choosing a PMS in India.

What is PMS (Portfolio Management Services) in India?

Portfolio management involves the art and science of making decisions about investment mix and policy, aligning investments to objectives and balancing risk against performance. This includes the delicate task of asset allocation for individuals and institutions, and balancing risk against their goals and investment objectives.

At its core, portfolio management provides a strategic plan that guides investors in achieving their financial objectives. It consolidates various investment strategies into a structured and coherent portfolio. Such a portfolio could include multiple types of investments like equities, fixed-income, real estate, commodities, etc.

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Key benefits of portfolio management services for HNIs

High-Net-Worth Individuals (HNIs) can have multiple income sources and multifaceted financial goals, which makes personalized investment strategies essential. Availing the best portfolio management services can offer HNIs tailored solutions aligned with their individual needs.

The best PMS services in India can provide expert asset allocation strategies, active risk management, and portfolio diversification, all handled by professional portfolio managers. Unlike other conventional investment options, PMS can also provide greater flexibility and active oversight, with managers tracking market trends, asset class performance, and portfolio movements. It also gives HNIs more control over asset allocation.

HNIs can select the best PMS funds in India and get access to professionally managed strategies that can help them optimize returns while managing risk more effectively.

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Types of PMS: Discretionary, non-discretionary & advisory

The top 10 PMS in India generally fall into three categories:

Discretionary PMS: Under discretionary PMS, the portfolio manager has full and final authority to make investment decisions on your behalf. This type of PMS is ideal for investors who prefer professional management with minimal involvement.

Non-discretionary PMS: Here, the portfolio manager provides personalized recommendations, but the investor has the final say on buying and selling decisions. This suits investors who want expert guidance while retaining some control themselves.

Advisory PMS: In advisory PMS, fund managers provide investment advice, but investors make and execute the transactions themselves. This approach is ideal for experienced investors who want professional guidance while retaining full control over their investment decisions.

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Delving deeper into financial planning and analysis

Financial planning is the process of meeting your life goals through proper management of your finances. These goals could range from buying a home, saving for your child’s education or planning for retirement. It provides direction and meaning to your financial decisions.

Analysis, on the other hand, is about studying the past, current and projected state of your finances. It takes into account variables such as inflation, risk and taxes, helping you project your future cash flows, asset values and withdrawal plans.

When combined, financial planning and analysis provide a blueprint to guide your investment decisions, enabling you to make informed choices and understand the impact of those decisions on your financial goals.

How to select the best PMS in India?

The task of choosing the best PMS in India requires a combination of careful research, understanding your financial goals and aligning these goals with the expertise of the right portfolio manager. Let’s delve deeper into the key factors to consider while making this pivotal decision.

Performance history

Looking at a PMS’s past performance is often a good starting point. Although past performance is not a surefire predictor of future outcomes, it does paint a picture of the portfolio manager’s expertise, strategy effectiveness and ability to navigate varying market conditions.

Look for consistency in returns over the long term, rather than short-term high-performance spikes. A PMS with a solid record of steady returns can often be more reliable than one that occasionally hits home runs but also has more frequent low-performing years.

Role of a PMS portfolio manager

The individual who takes up the task of portfolio management is known as a Portfolio Manager. Their duty involves making investment decisions and carrying out investment activities on behalf of vested individuals or institutions. In essence, the portfolio manager is an expert in understanding market dynamics and utilizing the same for the benefit of the clients.

A good portfolio manager will provide you with comprehensive personal financial planning and analysis, tailoring your investments to suit your specific goals, risk tolerance and time frame. This financial planning and analysis form the crux of a successful investment journey.

Investment strategy

The investment strategy adopted by the PMS is crucial in determining if it aligns with your financial objectives and risk tolerance. Some strategies may focus on investing in high-growth sectors, while others may be more diversified. Some may be aggressive, focusing on equities, while others may adopt a balanced approach with a mix of equities and fixed income.

Ask for a detailed explanation of the investment strategy, including which sectors they focus on, their risk management measures, and their process for selecting and reviewing investments. This will help evaluate whether their approach fits your investment philosophy and goals.

Fee structure and transparency

The fee structure of a PMS is an important consideration as it can significantly impact the net returns. Some services charge a flat annual fee, while others may charge a performance-based fee.

Understand all the costs associated with the PMS, including management fees, custodian fees, brokerage costs and any other hidden charges. Consider these costs about the services offered and the potential returns on your investments.

Customer service

The quality of customer service can make a significant difference in your investment journey. This includes regular, comprehensive updates on your portfolio’s performance, prompt responses to your queries and transparency in all communications.

Look for a PMS that provides online access to your portfolio, with detailed reporting features, so you can monitor your investments at your convenience. A good PMS will make you feel valued and well-informed, giving you confidence in their stewardship of your investments.

Regulatory compliance & SEBI guidelines

Ensure that the PMS you choose is registered with the Securities and Exchange Board of India (SEBI) and abides by all the necessary compliance measures. This will safeguard your investment from potential fraud and malpractice.

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Factors to consider before choosing the best PMS fund

Here are some key factors that can help you select the best PMS funds in India:

Understand risk levels: Assess the inherent risks associated with the service and ensure they align with your risk appetite.
Review investment philosophy and objectives: Study the PMS fund’s underlying strategy and goals to see whether they match your financial priorities.
Evaluate historical performance: Assess the performance of the PMS fund across different time frames to check if it has consistently delivered. Avoid focusing only on short-term returns, as those could be misleading. This helps you judge the reliability of the best PMS funds in India.
Assess fund manager expertise: Look at the experience and track record of the portfolio manager as well as supporting management teams.
Check performance consistency: Analyze how the fund has performed across various market cycles to ensure stable management.

SEBI rules, minimum investment & transparency in PMS

Here’s an overview of SEBI rules for PMS in India:

All PMS providers must be officially registered with SEBI.
SEBI has set a minimum investment threshold of Rs 50 lakh for investors.
PMS providers must clearly communicate all fees, charges, and associated risks to investors to maintain transparency.
PMS firms must designate a compliance officer who is responsible for overseeing regulatory practices.
Investors must receive periodic updates on portfolio performance and holdings from the PMS.
Client investments must be kept with an independent custodian to avoid conflicts.

Expert tips: How to evaluate PMS performance & select the right manager

Here are some expert tips to help you evaluate PMS performance and choose the best PMS in India:

Review portfolio performance over time and compare your financial position before and after investing to know where you stand in terms of progress.
Compare fee structures and charges across PMS providers to ensure you are not being overcharged and are paying transparent costs.
Conduct a thorough risk assessment to confirm that the strategy of the PMS aligns with your personal risk appetite and goals.
Check the experience and track record of fund managers to understand their investment expertise.
Assess client service standards, communication style and frequency. Investor-focused ongoing support can potentially lead to long-term investing success.

Cost structure of top PMS services in India

PMS fees for the best PMS in India vary by provider and service model. There are three types of cost models.

A fixed-only fee is charged annually, typically ranging from 0.25% to 2.5% of the average portfolio value.
A performance-based fee applies to profits earned above a set hurdle rate.
Some providers use a hybrid fee structure that combines a lower fixed fee with performance charges when returns exceed the benchmark.

Who should invest in PMS?

PMS can be suitable for HNIs who can invest at least Rs 50 lakh and are looking at an investment horizon of at least five to seven years or more. It may work for those who are comfortable with higher costs, as PMS usually comes with greater fees compared to mutual funds. It can also be suitable for those looking for customized investment guidance.

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Conclusion

Remember, choosing the right PMS is an important decision. With the right PMS, you’ll not just have an investment portfolio, but you’ll also have a financial partner committed to helping you reach your financial goals. It’s a decision that requires thought, analysis and understanding, but with the right information and guidance, it’s a decision that can help secure your financial future.

Tata Capital’s Wealth services are one option worth considering for your personal financial planning. They provide customized solutions to meet your unique financial goals, coupled with a robust performance history and excellent customer service. As a SEBI-registered entity, they adhere to all regulatory norms, ensuring your investments are safe and managed efficiently.

Remember, a well-managed portfolio is not just about maximizing returns, it’s also about aligning your investments with your life goals. So, choose wisely and invest responsibly.

FAQs

Which is the best PMS in India for 2026?

It depends on your goals, risk appetite, and investment horizon. It may be advised to research carefully and choose a fund that aligns with your needs rather than relying on generic reviews and rankings.

What are the top 10 PMS in India currently?

The top 10 PMS in India include:

PMS Tracker
Aequitas Investment Consultancy Pvt Ltd
iThought Financial Consulting LLP
Qode Advisors LLP
Maximal Capital
Wave Asset Private Limited
InCred Asset Management
2Point2 Capital
Pace Financial Investment Adviser Pvt Ltd
iThought Financial Consulting LLP (Second Portfolio)

What is the minimum investment to start a PMS account in India?

SEBI mandates a minimum investment of Rs 50 lakh to start a PMS account in India. This makes it suitable primarily for HNIs.

How are PMS services different from mutual funds?

PMS offers tailored portfolios, personalized asset allocation, and direct fund management. In contrast, mutual funds usually follow standard investment strategies and offer limited customization options.

Are returns from PMS taxable in India?

Yes, PMS returns are taxable. Short-Term Capital Gains (STCG) are taxed according to applicable rates, while Long-Term Capital Gains (LTCG) are taxed as per prevailing Indian income tax rules.

Can NRIs invest in the best PMS funds in India?

Yes, NRIs can invest in PMS funds if they meet the minimum investment requirement and comply with regulatory guidelines for foreign investors. Tax implications for NRIs may also vary, so make sure to consult a tax advisor.

What is the average fee structure for PMS in India?

PMS fees can vary by the type of structure chosen, whether fixed, performance-based, or hybrid. Fee structures may also differ between providers, services chosen, and strategies. Therefore, you must compare different funds to get a more precise idea of the average fee structure.

How do I compare the best PMS options as an HNI?

You can compare PMS options based on fund manager expertise, investment strategy, historical performance, risk profile, and cost. Evaluating these factors can help HNIs select a portfolio that aligns with their long-term financial goals.

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