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1. Number of PMS Firms Registered with SEBI

• As of 2024, there are approximately 440+ PMS firms registered with SEBI anandrathipms.comIIFL Capital Services.
• SEBI’s official intermediary list (as of September 9, 2025) actually shows 491 registered portfolio managers (PMS entities) Securities and Exchange Board of India.

So, depending on the data source and update time, the number ranges between 440 to nearly 500 firms.

2. Total PMS AUM (Assets Under Management)

• As of Q1 FY25, total PMS AUM crossed ₹7.08 lakh crore nbfcadvisor.comckredencewealth.com.
• Over the past five years, the PMS industry’s AUM has doubled, reaching ₹32 lakh crore by April 2025 The Financial Express.

There’s also a conflicting, lower AUM figure (₹4.37 lakh crore) cited by NDTV for April 2025—likely referring to a narrower segment or specific subset NDTV Profit. But multiple corroborated sources support the ₹7.08 lakh crore to ₹32 lakh crore range for total PMS AUM.

3. Combined PMS + AIF AUM

While data for combined AUM isn't always published together, your provided figure of ₹18.87 lakh crore for combined PMS + AIF AUM (FY25) isn’t directly confirmed by recent sources. I couldn’t locate an authoritative reference, so it may need verification from industry reports or APMI publications.

The core purpose of Portfolio Management Services (PMS) is to provide professional, personalized management of investments so that investors can achieve their financial goals efficiently.

PMS is designed mainly for HNIs and institutions, with a focus on:

• Wealth Growth – aiming for superior returns over time
• Risk Management – balancing opportunities with risks
• Diversification – spreading investments smartly across assets
• Liquidity Needs – keeping access to money when required
• Tax Planning – structuring investments in a tax-efficient way

PMS seeks to deliver a tailor-made strategy that maximizes returns while protecting the investor’s wealth.

• Customization – Tailor-made strategies designed to match your profile, goals, and risk appetite, with direct ownership of equities.
• Expert Management – Portfolios managed by experienced professionals who focus on delivering consistent, risk-adjusted returns.
• Focused Diversification – Investments spread across sectors and asset classes, but typically in 15–30 high-conviction stocks, not hundreds.
• Transparency – Clear view of holdings in your own Demat account, plus detailed performance and transaction reports.
• Higher Return Potential – Opportunity to outperform mutual funds through concentrated, conviction-driven portfolios.
• Tax Efficiency – Active tax-conscious decision-making to improve post-tax returns.
• Flexibility – More adaptable than mutual funds, with strategies ranging from equity to multi-asset, thematic, or sector-focused.
• Accountability – Discretionary PMS managers are measured against CAGR performance, ensuring alignment with investor expectations.
• Operational Ease for NRIs – Simplifies cross-border investment processes with regulatory compliance built-in.

PMS offers personalization, control, and performance focus that traditional mutual funds and instruments can’t match.

Step 1: What is AUM?

AUM stands for Assets Under Management — basically, the total money a Portfolio Management Service (PMS) is managing on behalf of its clients.

Think of it like a teacher managing students: the number of students (AUM) shows how many parents trust that teacher with their kids’ education. Similarly, AUM shows how many investors trust a PMS with their money.

Step 2: Why does AUM matter?

• Trust & Stability → A larger AUM means many investors have already trusted the PMS. It signals credibility and experience.
• But Too Large AUM Has Drawbacks → If a PMS manages a very big pool of money, it may be forced to invest only in large companies (large-cap stocks) because putting huge sums into smaller companies (mid/small-caps) would disrupt the market. This reduces flexibility.
• Ideal Balance → An AUM range of ₹300 crore – ₹3,000 crore is usually considered good.
  • Big enough to show trust and reliability.
  • Small enough to stay nimble, allowing the manager to pick emerging, high-growth businesses that can deliver better returns.

Step 3: Simple Analogy

Imagine three restaurants:

• Restaurant A (Small AUM) – Only 2–3 customers. The chef is good, but you wonder: If it’s so good, why aren’t more people coming?
• Restaurant B (Huge AUM) – Thousands of customers. The chef is famous, but now they can only cook in bulk. Every dish tastes the same, less experimentation.
• Restaurant C (Medium AUM) – A few hundred regulars. Enough people trust it, but the chef still experiments with new recipes and gives attention to detail.

Similarly, medium AUM PMS providers often strike the right balance between trust, stability, and flexibility.

Step 1: What is AUM?

AUM stands for Assets Under Management — basically, the total money a Portfolio Management Service (PMS) is managing on behalf of its clients.

Think of it like a teacher managing students: the number of students (AUM) shows how many parents trust that teacher with their kids’ education. Similarly, AUM shows how many investors trust a PMS with their money.

Step 2: Why does AUM matter?

• Trust & Stability → A larger AUM means many investors have already trusted the PMS. It signals credibility and experience.
• But Too Large AUM Has Drawbacks → If a PMS manages a very big pool of money, it may be forced to invest only in large companies (large-cap stocks) because putting huge sums into smaller companies (mid/small-caps) would disrupt the market. This reduces flexibility.
• Ideal Balance → An AUM range of ₹300 crore – ₹3,000 crore is usually considered good.
  • Big enough to show trust and reliability.
  • Small enough to stay nimble, allowing the manager to pick emerging, high-growth businesses that can deliver better returns.

Step 3: Simple Analogy

Imagine three restaurants:

• Restaurant A (Small AUM) – Only 2–3 customers. The chef is good, but you wonder: If it’s so good, why aren’t more people coming?
• Restaurant B (Huge AUM) – Thousands of customers. The chef is famous, but now they can only cook in bulk. Every dish tastes the same, less experimentation.
• Restaurant C (Medium AUM) – A few hundred regulars. Enough people trust it, but the chef still experiments with new recipes and gives attention to detail.

Similarly, medium AUM PMS providers often strike the right balance between trust, stability, and flexibility.

There is no mandatory lock-in for PMS investments (unlike some other products).

However:

• PMS providers usually recommend a 3–5 year holding period to allow strategies to play out and maximize returns.
• If you withdraw earlier, an exit load (1–3%) may apply, depending on the provider.

In short: You’re free to exit, but staying invested longer often works better.

28. What are the common risks associated with PMS?

Just like every investment, PMS also comes with risks. Knowing them helps you make smarter decisions. Here are the main ones:

1. Market Risk

• PMS portfolios are directly linked to the stock market.
• If the market goes up, your portfolio benefits. If it goes down, your portfolio value can fall.
• Example: A sudden global recession or a war can drag down even strong stocks.

Think of it like sailing — even if your ship is strong, rough seas (market conditions) will still shake you.

2. Concentration Risk

• PMS portfolios usually hold 15–30 stocks (much fewer than mutual funds).
• This focus can give higher returns when those stocks do well.
• But if 2–3 big stocks underperform, the entire portfolio can take a hit.

Like putting most of your money on a few horses in a race — if they run fast, you win big, but if they stumble, losses are sharper.

3. Liquidity Risk

• PMS often invests in mid-cap and small-cap companies for higher growth.
• In bad market conditions, these stocks can be harder to sell quickly without losing value.

Imagine trying to sell land in a remote area during a downturn — fewer buyers, lower price.

4. Managerial Risk

• Your returns depend heavily on the portfolio manager’s skills and decisions.
• A good manager can deliver great returns, but a wrong call can hurt performance.
• Returns are never guaranteed, even with experienced managers.

Like hiring a chef — if they’re skilled, you’ll enjoy amazing meals; if not, the same ingredients may taste bland.

5. Higher Costs

• PMS usually charges higher fees (management + performance fees) compared to mutual funds.
• These costs eat into your net returns, especially if performance is average.

Like paying for a luxury hotel — you get more services, but if you don’t use them fully, you may feel it wasn’t worth the money.

• Time Zone Advantage
  Fund manager takes investment decisions in real-time Indian market hours, so NRIs don’t miss opportunities due to time differences.

• Operational Ease
  No need to handle multiple trading accounts or folios — the manager does it on your behalf.

• Clear Accountability
  The PMS manager is directly responsible for the CAGR (portfolio performance), unlike DIY investing.

• Reduced Monitoring Burden
  NRIs don’t have to track Indian markets daily — the manager monitors and acts.

• Compliance-Friendly
  PMS managers ensure adherence to insider-trading restrictions, NRI investment rules, and employment policies.

When you invest in PMS, your money and stocks aren’t directly held by the portfolio manager. Instead, they are kept safe by an independent custodian. This setup ensures safety, transparency, and no conflict of interest.

1. Independent Custody (Safety First )

• The custodian is a third-party institution (like a trusted vault).
• Their job is to hold your money and securities separately from the PMS manager’s own funds.
• This ensures that the manager cannot misuse or mix your assets with others.

Think of it like renting a locker in a bank — the locker is yours, but the bank (custodian) safeguards it.

2. Fund Accounting & Compliance

• Custodians maintain records of holdings, transactions, and valuations.
• They make sure all activity follows SEBI rules.
• This transparency builds confidence, since your portfolio’s accounting is done independently.

3. How it works for Resident Investors

• Your funds are first pooled in a common account.
• Then they are segregated and mapped in your individual name, so ownership is crystal clear.

4. How it works for NRIs/FPIs

• A separate NRE/NRO account is opened in the investor’s name.
• The custodian is given Power of Attorney (PoA) to operate this account on behalf of the investor.
• This allows smooth compliance with Indian laws while keeping assets secure.

Portfolio Management Services (PMS) are designed for High Net Worth Individuals (HNIs) who can meet the minimum investment requirement of ₹50 lakh (as mandated by SEBI).

But PMS isn’t limited to individuals — several types of entities can invest.

1. Individuals

• Resident Indians who meet the minimum investment criteria.
• Example: A working professional, business owner, or retiree with investable surplus.

2. Hindu Undivided Families (HUFs)

• HUFs can pool family wealth and invest in PMS under the karta’s name.
• Example: A family managing ancestral wealth together.

3. Sole Proprietorships

• Individual-run businesses can invest in PMS in the name of the proprietor.

4. Partnership Firms & LLPs

• Business partnerships and LLPs can allocate firm funds into PMS.

5. Companies (Private & Public Limited)

• Corporate entities often invest treasury funds or surplus cash into PMS for professional management.

6. Association of Persons (AOPs) / Trusts

• Groups of individuals or trusts with pooled resources can also invest.

7. Non-Resident Indians (NRIs)

• NRIs are eligible, subject to regulatory compliance (NRE/NRO accounts, RBI rules).
• Example: An NRI doctor in the US investing in Indian markets via PMS.

Yes, but only in non-discretionary PMS and capped at 25% of AUM. They are generally not allowed in discretionary PMS.

Yes, SIPs are possible once the minimum ₹50 lakh investment is met. This enables disciplined, regular investing.

When you invest in PMS, the cost isn’t limited to just the fixed management fee and performance fee. There are several other charges you should be aware of.

1. Entry Load (Joining Fee)

• A one-time fee (usually 1–3%) charged when you start investing.
• Example: If you invest ₹50 lakh with a 2% entry load, ₹1 lakh goes as a fee upfront.

2. Exit Load (Early Withdrawal Fee)

• Charged if you withdraw before a certain time frame (commonly 1–3% if withdrawn within 1–3 years).
• Encourages long-term investing.

3. Custodian & Demat Charges

• Since your shares are held safely with an independent custodian in a demat account, small annual charges are levied.
• Usually a few thousand rupees a year.

4. Brokerage Fees

• Every time your PMS manager buys or sells stocks, brokerage is charged (just like in your personal trading account).
• Typically 0.1% per trade.

5. Audit Fees

• PMS accounts are independently audited each year.
• Audit fees are shared with clients to maintain transparency.

6. Other Operating Expenses

• Fund accounting, transaction charges, and statutory levies like Securities Transaction Tax (STT) and stamp duty.

7. Goods & Services Tax (GST)

• 18% GST is applied on management fees.
• Example: If management fees are ₹1 lakh per year, ₹18,000 will be added as GST.

Fees vary based on:

(i) Investment Strategy (active strategies cost more),

(ii) Manager Expertise (proven track records demand higher fees),

(iii) Operational Costs (research, compliance, technology, admin).

Yes, some providers (e.g., ICICI PMS) allow diversification of a single PMS account across multiple equity and mutual fund strategies, based on risk profile and needs.

SEBI does not approve, recommend, or certify PMS performance. PMS is contractual and customized, without pooling of funds or unit issuance like mutual funds. Hence, performance across portfolio managers is not directly comparable.

Yes, but only if you fully understand the risks, have the financial capacity, and your risk appetite allows you to withstand higher volatility. PMS has a ₹50 lakh minimum requirement and is designed for sophisticated investors. For most first-time equity investors, starting with mutual funds is a better way to build experience before moving to PMS.

Narrative-based investing happens when investment decisions are driven more by a story or hype rather than actual business fundamentals (revenues, profits, cash flow).

1. What does this mean?

• Sometimes a hot trend (like EVs, AI, or renewable energy) creates so much buzz that investors start buying companies simply because they fit the story.
• Prices rise quickly, not because the company is making real profits, but because everyone believes in the “narrative.”

Example: Think of the dot-com bubble in the early 2000s, when any company with “.com” in its name got sky-high valuations, even without solid business models.

2. Why is it risky?

• No Margin for Error – Since valuations are inflated, even a small disappointment (lower sales, delays, regulatory issues) can crash the stock price.
• Retail Frenzy – When too many small investors rush in chasing hype, volatility increases.
• Short-lived Gains – Narratives can change quickly; yesterday’s “hot story” may become irrelevant tomorrow.

It’s like buying a ticket to a concert just because everyone else is excited, without checking if the artist can actually sing.

3. The Better Approach

Investors should prioritize companies with:

• Strong fundamentals (steady revenues, profits, cash flows).
• Proven growth potential.
• Sustainable business models.

Narratives can play a role in identifying future themes, but they must be backed by solid numbers.

Narrative-based investing happens when investment decisions are driven more by a story or hype rather than actual business fundamentals (revenues, profits, cash flow).

1. What does this mean?

• Sometimes a hot trend (like EVs, AI, or renewable energy) creates so much buzz that investors start buying companies simply because they fit the story.
• Prices rise quickly, not because the company is making real profits, but because everyone believes in the “narrative.”

Example: Think of the dot-com bubble in the early 2000s, when any company with “.com” in its name got sky-high valuations, even without solid business models.

2. Why is it risky?

• No Margin for Error – Since valuations are inflated, even a small disappointment (lower sales, delays, regulatory issues) can crash the stock price.
• Retail Frenzy – When too many small investors rush in chasing hype, volatility increases.
• Short-lived Gains – Narratives can change quickly; yesterday’s “hot story” may become irrelevant tomorrow.

It’s like buying a ticket to a concert just because everyone else is excited, without checking if the artist can actually sing.

3. The Better Approach

Investors should prioritize companies with:

• Strong fundamentals (steady revenues, profits, cash flows).
• Proven growth potential.
• Sustainable business models.

Narratives can play a role in identifying future themes, but they must be backed by solid numbers.

Monitoring your PMS is simple and transparent with PMS Sahi Hai:

• Real-Time Dashboard: Track your portfolio performance, individual holdings, and benchmark comparisons anytime.
• Performance Analytics: See returns, risk metrics, and allocation breakdowns at a glance.
• Nyra – Your AI Wealth Companion:
  • Provides personalized insights based on your portfolio.
  • Alerts you to important changes, potential risks, and opportunities.
  • Helps you understand complex data in simple terms, so you stay in control.

With our dashboard and Nyra, you get real-time visibility, expert insights, and actionable updates, making portfolio management transparent and easy.

• Mutual Funds: You pay tax only when you sell your investment.
• PMS: Every time the manager buys or sells for you, the tax is counted in your name.
• Fees: PMS charges extra for personal management (like paying a chef’s fee). In mutual funds, the cost is already built into the fund’s price.

We check how each PMS invests whether it’s safe, balanced, or aggressive.

Then we match it with your goals, how long you want to invest, and how much risk you’re okay with.

This way, you only see plans that are the right fit for you.

With a bigger amount, PMS gives you:

Direct ownership of shares in your own account

A plan made just for you

A clear view of where your money is invested

Mutual funds are great for smaller amounts, but PMS gives you more control and exclusivity when you invest larger sums.

We bring together data from many PMS managers and show it in one place:

Past performance

Risk vs. returns

Side-by-side comparisons

This way, you can choose wisely — based on facts, not just sales talk.

We study your current portfolio which sectors, stocks, or asset classes you are invested in — and check for concentration risks. Based on this, PMS Sahi Hai suggests PMS strategies that can add balance and diversification, reducing overexposure.

Unlike platforms that just distribute PMS products, PMS Sahi Hai:

• Provides neutral, data-driven comparisons of all PMS strategies.
• Offers aggregated performance insights, not just sales-led recommendations.
• Focuses on post-investment monitoring, so you stay updated on how your PMS is really performing.

With the help of Nyra, your AI wealth companion, we look at:

• Investment horizon → short-term vs. long-term
• Risk comfort → conservative, moderate, or aggressive
• Financial goals → growth, income, or wealth preservation

Nyra analyzes these inputs and then maps you to PMS strategies that best fit your profile ensuring recommendations are personalized, data-driven, and not generic sales pushes.

Our aggregator model brings data from across the PMS industry into one platform, so you can:

• Compare strategy-wise returns
• Benchmark against peers and indices
• Track PMS providers objectively, without bias

This saves time and avoids dependence on individual PMS sales teams.