When it comes to growing wealth strategically, investors often ask: Should I go for Mutual Funds or Portfolio Management Services (PMS)?
While Mutual Funds are a popular route for retail investors, PMS investment is designed for those seeking personalized, goal-oriented wealth creation. At Maloo Investwise, we believe understanding the core difference helps you make smarter financial decisions. So let’s dive in!
Understanding the Basics of PMS
Portfolio Management Services (PMS) is a professional financial service where experienced portfolio managers invest your money in equities, fixed income, and other securities based on a clearly defined strategy tailored to your financial goals.
Unlike mutual funds, PMS offers:
- A separate Demat account for each investor
- Personalized stock selection
- Goal-specific portfolio structuring
PMS vs Mutual Funds: What’s the Difference?
Feature | Mutual Funds | PMS |
Investment Structure | Pooled from many investors | Individual portfolios |
Customization Level | Standardized | High – tailored to your goals |
Control & Transparency | Moderate | High – investor sees every stock movement |
Entry Point | ₹500 – ₹5,000 | ₹50 lakhs and above |
Ideal For | Retail investors | HNIs and ultra-HNIs |
While Mutual Funds remain suitable for beginners, PMS caters to sophisticated investors looking for high-touch financial planning.
Key Benefits of PMS Investment
Here’s why PMS can be a game-changer:
- Customization: Portfolios are built based on your specific needs.
- Focused Investments: Unlike mutual funds, PMS can hold concentrated positions in high-conviction stocks.
- Transparency: You know exactly what you hold in your portfolio.
- Flexibility: Investment strategies can be adjusted based on market conditions and your preferences.
- Direct Ownership: All securities are held in your name.
With PMS online, managing and tracking these benefits has become more seamless than ever.
Types of PMS You Should Know
At Maloo Investwise, we help you choose the right type of PMS based on your goals:
- Discretionary PMS: The fund manager takes all decisions on your behalf.
- Non-Discretionary PMS: You’re actively involved; the manager advises, but you approve every trade.
- Advisory PMS: You receive investment recommendations but execute trades on your own.
Each type has its strengths—knowing which suits you helps optimize returns.
PMS Online: The Digital Edge
In today’s digital age, PMS online offers:
- Hassle-free digital onboarding
- Portfolio access via app/web
- Instant reports and insights
- Online support from your dedicated relationship manager
Maloo Investwise integrates digital solutions with human expertise to offer a hybrid model that works best for you.
Tax Implications in PMS vs Mutual Funds
Taxation is a critical factor when choosing between PMS and mutual funds:
Investment Type | Capital Gains Tax (Equity) | Tax Handling |
Mutual Funds | 10% on LTCG > ₹1 lakh/year | AMC deducts and files |
PMS Investment | 10% on LTCG > ₹1 lakh/year | Investor handles filing |
PMS requires active tax planning. That’s why our experts at Maloo Investwise offer end-to-end support, from investment strategy to tax filing assistance.
FAQs: Your PMS Questions Answered
Q1: Is PMS better than Mutual Funds?
A: PMS is better for high-net-worth individuals (HNIs) seeking personalized, high-return strategies, while mutual funds are ideal for retail investors.
Q2: Can I switch from mutual funds to PMS?
A: Yes! Our experts at Maloo Investwise help you transition smoothly based on your evolving financial goals.
Q3: What is the minimum amount to start PMS?
A: SEBI mandates a minimum of ₹50 lakhs to invest in PMS.
Q4: Is PMS risky?
A: Like all equity investments, PMS carries risks. However, having a tailored strategy can help manage them more effectively.
Why Maloo Investwise?
Whether you’re exploring mutual funds or upgrading to PMS investment, we offer:
- 30+ years of wealth management expertise
- Trusted by thousands as the best mutual fund distributor in India
- AMFI registered and mutual fund distributor.
- Fully transparent and ethical practices
- Personalized, goal-based wealth planning
Our reputation as a top-tier mutual fund distributor and PMS advisor is built on trust, performance, and care.
Conclusion
Portfolio Management Services (PMS) are powerful tools for HNIs aiming for personalized, focused, and actively managed investments. While Mutual Funds remain a reliable option for many, PMS offers a sophisticated path to wealth creation. At Maloo Investwise, we help you navigate both worlds with confidence, clarity, and expert care.