Everything about Portfolio Management Services


The Portfolio Management Service, or PMS, is a specially designed service that offers you great investment strategies which can get you good returns. The fund manager offers you different strategies according to your risk-return balancing requirements. You will get reports about your portfolio constantly.

What is the fee structure for PMS?

The free structure of portfolio management service can vary. It entirely depends on the performance of the fund managing company and the performance of the portfolio. Some of the structures can be:

You can get a fixed proportion of the main amount of the fund. It will be counted on the initial investment you make.

The addition of an amount of money that can vary depending on the performance of the portfolio. For this, you will get that amount added with the fixed proportion.

What are the tax implications of investments in PMS? 

The money you earn from the PMS is considered to be ‘capital gain’ as they are independent deals. Thus, your income from it is taxable. The tax depends on whether it was a long term investment or a short term investment. Short term capital gain is taxed at 10%. However, long term capital gains do not initiate any tax. 

What are the advantages of investing in PMS vis-a-vis mutual funds?

One of the best benefits in PMS is that you can handle the asset allocation better. In a mutual fund, the asset allocation is automated by the funding house but with PMS it can be organized according to your risk-return needs and outlook. It also becomes easier to invest money in or pull out funds from the fund according to the market situation.

Is there a maximum limit for investing in portfolio management services?

There is no upper limit for investing in PMS. You can invest as much money as you wish to and manage the PMS according to the amount you have invested.

Does portfolio management services have any lock-in period?

The lock-in period completely depends on the company in which you have your funds invested. Most of the companies do not have any lock-in period. Some companies, however, introduce a lock-in period and they mention it in the documentation. If you are looking for a no lock-in period, it is best to avoid these companies.


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