You have done well in mutual funds. Here is what actually changes.
An objective comparison, not a pitch. Four structural differences, one break-even number, and an honest gate that says when staying in funds is the better call.
Four things change. Only four.
Strip away the marketing and the move from a mutual fund to a PMS changes exactly four things about how your money is held, taxed and reported. Everything else is detail.
| What changes | Your mutual funds | A PMS |
|---|---|---|
| Holdings | 45–70 stocks per fund, built for diversification | 15–25 stocks, built for conviction |
| Ownership | Units of a pooled scheme | Direct shares, held in your own demat |
| Tax | Deferred until you redeem | Realised gains taxed in your hands, every year |
| Reporting | A daily NAV | Monthly holdings, plus TWRR against the benchmark |
The only number that matters: break-even.
For the switch to pay, the PMS must beat your fund by enough to cover its own fees and its own tax drag. This calculator resolves the whole question into one number: the extra gross return per year the manager must deliver just to match your fund's post-tax outcome.
The PMS must gross about 15.0% a year, against the 13.0% assumed for your fund, just to match its post-tax outcome. Everything above that is what you actually gain.
A simplified illustration, not advice or a forecast. The full model is stated in the note at the end of this page. This calculator runs entirely in your browser, nothing you enter is stored or sent.
Turnover is a fee. Price it like one.
Every time the manager sells inside a PMS, you pay tax that year. Churn therefore behaves exactly like an extra annual fee, one that never appears on the fee schedule. Ask any manager you meet for their actual turnover, then read this table.
Approximate drag on a 13% gross return, with the turnover share of gains taxed as short-term. Your own drag depends on rates, returns and holding periods.
| Turnover | What it looks like | Tax drag |
|---|---|---|
| 15% | Patient, buy-and-hold | ~0.2% / yr |
| 30% | Typical conviction manager | ~0.5% / yr |
| 50% | Active rotation | ~0.8% / yr |
| 80% | High churn | ~1.5% / yr |
| 120% | The whole book turned over, and more | ~2.4% / yr |
Audit what you already hold first.
A ₹1–2 crore fund portfolio built over years usually carries three quiet inefficiencies. Fixing them costs little, and two of the three need no new product at all.
Overlap across your funds
Pull the top ten holdings of every fund you own and count the repeats. Five funds often turn out to hold the same dozen companies, which means you are paying five expense ratios for one portfolio.
Still on regular plans
If any folio is a regular plan, switch to direct first. It is the cheapest upgrade available, it needs no new product, and it changes nothing about what you hold.
Allocation drift
A decade of SIPs rarely lands where your plan started. Check equity, debt and mid-cap weights against your intent before adding a concentrated PMS on top of an already tilted book.
Audit first. Decide second.
Send us your CAS and we run the overlap map and the break-even arithmetic on your actual portfolio. That work carries no charge, and staying in funds is a perfectly good outcome.
Book a private consultationThe sensible path in, four steps.
Nothing here requires abandoning what got you to ₹1–2 crore. The structure that works treats the PMS as an addition to a working machine, not a replacement for it.
Keep the diversified core
Your funds stay. They are the ballast that lets a concentrated 15–25 stock book take real positions without betting the house.
Size the PMS as a satellite
Start at the ₹50 lakh SEBI minimum or close to it, and keep the PMS within roughly a quarter of your investable wealth.
Fund it from new money first
New savings and maturing deposits carry no exit tax. Selling fund units to fund the PMS triggers the very tax the calculator just priced.
Judge at 12 months, against the agreed benchmark
Fix the benchmark in writing before you sign. At month twelve, compare TWRR against it, not against your fund's best year.
When staying in funds is the right call.
A good outcome of this arithmetic is often the decision not to move. If any of these five hold, keep compounding where you are and revisit the number in a year.
- The break-even number is higher than you honestly expect any manager to sustain.
- The move would push the PMS past about a quarter of your investable wealth.
- Per-trade capital gains filing feels like a burden you do not want to carry.
- Your fund overlap is unresolved. Fix that first, it is cheaper.
- The urge to switch is driven by one manager's one hot year.
Shortlisting managers? Nyra has read them all.
Ask her for any strategy's turnover, fee structure and Nyra Score on the same 0–10 basis, with every answer citing its source. The arithmetic on this page, applied to real factsheets.
What MF graduates ask first.
No. The sensible structure keeps your diversified fund core intact and adds the PMS as a satellite, typically a quarter or less of your investable wealth. Moving everything concentrates risk and can trigger tax on your entire corpus in one year.
Find your page.
PMS Sahi Hai is operated by Nyra Capital Partners Consultancy Pvt Limited, an APMI-registered distributor (APMI Reg. APRN08358). We are a distributor, not a SEBI-registered Investment Adviser, and nothing on this page is personalised investment advice. We are remunerated by the portfolio managers whose products we distribute; this is disclosed to you and does not change the fees you pay.
PMS and AIF investments are subject to market risk. Returns are not assured or guaranteed, and past performance is not indicative of future results.
Calculator note: the break-even model is a simplified illustration. It assumes LTCG at 12.5% and STCG at 20% on listed equity, ignores the ₹1.25 lakh annual LTCG exemption, taxes the mutual fund only at exit, taxes the turnover share of PMS gains annually, and applies 18% GST to the fixed fee. Actual outcomes depend on the strategy, the market path, your tax position and holding periods; verify with the scheme documents and a qualified tax adviser. The calculator runs entirely in your browser, nothing you enter is stored or sent.