Portfolio Management Services
PMS is a professional investment service offered by SEBI-registered portfolio managers. They manage a client’s portfolio of stocks, bonds, and other securities on behalf of the investor, tailoring it to specific goals and risk appetite.
Portfolio manager takes all buy/sell decisions independently.
Manager suggests investments, but the client makes the final call.
Manager only advises; execution is done by the client.
SEBI mandates a minimum ₹50 lakh investment for PMS accounts in India.
Unlike mutual funds, PMS portfolios are tailored to individual client needs.
Investors can see exact holdings in their Demat account.
No restriction on portfolio composition; managers can hold concentrated positions.
Managed by experienced fund managers with research support.
Flat annual management fee (e.g., 2% of assets).
Charged if returns exceed a benchmark (e.g., 20% of profits above hurdle rate).
Aspect | PMS | Mutual Funds |
|---|---|---|
Minimum Investment | ₹50 lakh | ₹500–₹5,000 |
Portfolio | Customized, client-specific | Common pool for all investors |
Transparency | Direct holdings in Demat | Units in fund NAV |
Fees | Higher (fixed + performance) | Lower (expense ratio) |
Risk | Higher (concentrated bets) | Diversified, relatively lower |
We at AF Financial Distributors provide customized investments plans to all our clients in order to help them achieve their financial goals. You too can achieve your financial goals with us over a cup of coffee.
Risk Factors – Investments in Mutual Funds are subject to Market Risks. Read all scheme related documents carefully before investing. Mutual Fund Schemes do not assure or guarantee any returns. Past performances of any Mutual Fund Scheme may or may not be sustained in future. There is no guarantee that the investments objective of any suggested scheme shall be achieved. All existing and prospective investors are advised to check and evaluate the Exit loads and other cost structure (TER) applicable at the time of making the investments before finalizing on any investments decision for Mutual Funds schemes. We deal in Regular Plans only for Mutual Fund Schemes and earn a Trailing Commission on client investments. Disclosure For Commission earnings is made to clients at the time of investments. Option of Direct Plan for every Mutual Fund Scheme is available to investors offering advantage of lower expense ratio. We are not entitled to earn any commission on Direct plans. Hence we do not deal in Direct Plans.
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