Navigating the stock market on your own or considering a major investment often leads to seeking expert guidance. This search stems from the need to make informed decisions that optimize returns while reducing potential risks.

Enter Portfolio Management Service (PMS) – the ideal solution for such situations. In this article, we will explore the key factors to consider when selecting the best PMS in India. A portfolio, which includes various asset classes like stocks, mutual funds, bonds, real estate, and commodities, serves as its foundation. Reputable and authorized intermediaries offer these services, helping you make smart financial decisions and managing your portfolio for a fee.

Typically, a Portfolio Management Service (PMS) charges a combination of a management fee (around 2% of the investment) and a performance fee (approximately 20% of the profits). Additionally, there may be exit penalties for early withdrawals. However, the competitive landscape in the industry is shifting, resulting in more affordable pricing models. For instance, Dezerv Investments—a PMS that has consistently outperformed the BSE500TRI since its inception—charges 0% in management fees, positioning it as one of the most cost-effective PMS options in India.

What is Portfolio Management Service?

Portfolio Management Services offer investors the chance to leverage the expertise of market insiders, providing them with valuable insights and guidance in critical investment decisions. Now, let’s delve into additional offerings they extend:

• Holistic Portfolio Management: PMS oversees all facets of managing your portfolio.
• Understanding Investor Goals: PMS providers comprehend your expectations for investment returns and individual preferences.
• Market Surveillance and Allocation: They vigilantly monitor the market and allocate your funds based on your requirements.
• Wealth-Driven Decision-Making: PMS providers make decisions geared towards augmenting your wealth.
• Stock Market Guidance: They offer valuable advice on activities in the stock market.

Characteristics of Portfolio Management Service

PMS service providers in India operate under the regulatory oversight of SEBI, managing portfolios that include both debt and equity. The minimum investment mandated by SEBI for PMS is INR 50 lakhs, although some providers may establish higher thresholds. Investors can choose from a range of model portfolios tailored to their financial goals, with options for customization if required.

Also Read: Brown Label ATM and 5 Other Amazing Types of ATMs You Didn’t Know About

Types of Portfolio Management Services

Portfolio Management Services can be broadly classified into three groups:

1. Discretionary Portfolio Management Service:

In this model, the portfolio manager possesses the freedom to invest in and manage the portfolio on behalf of investors without requiring their direct involvement. At present, the majority of service providers extend discretionary PMS.

2. Non-discretionary Portfolio Management Service:

This category operates in an advisory capacity, where the portfolio manager suggests appropriate investments aligned with the investor’s objectives and risk tolerance. The ultimate investment decision rests with the investor, while the portfolio manager oversees the execution.

3. Advisory Portfolio Management Service:

This service is comparable to advisory offerings tailored for high-value portfolios. The portfolio manager offers recommendations, and it is the investor’s responsibility to implement the suggestions.

Top PMS in India – Performance Rankings

The ranking criterion for this list is based solely on performance over the past 12 months. Below are 10 selected entries that have earned their spot among the best Portfolio Management Services (PMS) in India, evaluated for their performance up until August 2024.

• Wallfort PMS – Diversified Fund
• Green Lantern – Growth Fund
• Carnelian Asset – YnG Strategy
• Stallion Assets – Core Fund
• Motilal Oswal Asset – Multifactor Equity
• Moat Financial – UpperCrust Wealth Fund
• Asit C Mehta Investment – ACE Multicap
• Green Lantern – Alpha Fund
• Accuracap – Dynamo
• Equitree Capital – Emerging Opportunities

#1 Wallfort PMS – Diversified Fund – Best PMS in India

Wallfort PMS and Advisory Services LLP aims to offer clients a framework designed to both preserve and grow their capital.

Fund Manager: Mr. Vijay Shyamsunder Bharadia
AUM: INR 75.03 crore
1-year Returns: 99.29%
3-year Returns: 43.30%
5-year Returns: 43.40%

#2 Green Lantern – Growth Fund

The fund strategy endeavors to generate superior risk-adjusted returns, in varying market conditions, by investing in mid- and Small Cap companies. Ideal long-term investment (3-5 year Horizon) option for investors where it build a portfolio of companies that are Industry leaders, have the potential to generate healthy ROE, and are trading at a high margin of safety.

Fund Manager: Mr. Abhishek Bhardwaj
AUM: INR 890.61 crore
1-Year Returns: 98.00%
3-year Returns: 51.40%
5-year Returns: 50.90%

#3 Carnelian Asset – YnG Strategy

A long-only, multi-cap, well-diversified portfolio designed to capture yield and growth across industrials, financials, and services. It blends both public and private sector companies.

Fund Manager: Mr. Manoj Bahety
AUM: INR 87.50 crore
1-year Returns: 91.35%

#4 Stallion Assets – Core Fund

The main goal of the proposed portfolio management product is to achieve capital appreciation over the medium and long term by investing in Indian equity markets.

Fund Manager: Mr.Amit Mohanlal Jeswani
AUM: INR 2,815.07 crore
1-year Returns: 83.97%
3-year Returns: 31.47%/
5-year Returns: 38.80%

#5 Motilal Oswal Asset – Multifactor Equity

The goal is to construct a portfolio designed to outperform the broader market throughout the investment cycle by diversifying exposure to various investment factors. This will be achieved through a systematic and rules-based approach.

Fund Manager: Mr. Sankaranarayanan Krishnan
AUM: INR 34.53 crore
1-year Returns: 76.42%
3-year Returns: 28.11%

#6 Moat Financial – UpperCrust Wealth Fund

The strategy focuses on harnessing the long-term compounding effect of investments in exceptional businesses led by outstanding management for superior wealth creation. It seeks to deliver strong returns by investing in stocks from sectors poised to benefit from the next trillion-dollar GDP growth.

Fund Manager: Mr. Ramakrishnan TB
AUM: INR 102.44 crore
1-year Returns: 74.75%

#7 Asit C Mehta Investment – ACE Multicap

A structured value investing Total-Cap strategy entails selecting 25 equal-weighted stocks that are among the most undervalued and highly quality within a risk-mitigated and alpha-generating Scientific Alpha framework.

The total-cap universe consists of stocks with a market capitalization greater than INR 1000 crore and a minimum average daily liquidity of INR 1 crore over the preceding 3 months.

Fund Manager: Mr. Deepak Makwana
AUM: INR 205.06 crore
1-year Returns: 74.72%
3-year Returns: 64.74%
5-year Returns: 36.38%

#8 Green Lantern – Alpha Fund

The fund strategy aims to deliver superior risk-adjusted returns across different market conditions by investing in large mid-cap stocks within a comprehensive multi-cap allocation approach. This strategy is an ideal long-term investment option (2-3 years) for investors looking to build a portfolio of market leaders characterized by strong balance sheets, robust earnings growth, and consistent free cash flow generation.

Fund Manager: Mr. Abhishek Bhardwaj
AUM: INR 48.29 crore
1-Year Returns: 73.94%
3-year Returns: 38.18%

#9 Accuracap – Dynamo

GARP – Growth at Reasonable Price

Fund Manager: Dr. Raman Nagpal
AUM: INR 8.87crore
1-year Returns: 72.63%
3-year Returns: 32.93%
5-year Returns: 43.06%

#10 Equitree Capital – Emerging Opportunities

Equitree Capital is a SEBI-registered Portfolio Management Service (PMS) dedicated to long-term value creation. It prioritizes responsible investing and strives to provide clarity in an uncertain world. The full alignment with investors’ interests ensures that it keeps them ahead of tomorrow’s challenges.

Fund Manager: Mr. Pawan Bharaddia
AUM: INR 335.01 crore
1-year Returns: 72.12%
3-year Returns: 42.67%
5-year Returns: 39.78%

Also Read: Best Growth Mutual Funds in India

Top PMS in India – AUM Rankings

Here are the leading Portfolio Management Services (PMS) in India ranked by their Assets Under Management (AUM):

#1 ENAM Asset Management Company (AUM – INR 43,480.89 crore)

Flagship Strategy Details
Investment Approach – ENAM India Equity
Fund Manager – Mr. Rajesh Khona
AUM – INR 24,054.11 crore
1-year Returns: 34.97%

#2 360 ONE Asset Management (AUM – INR 32,803.90 crore)

Flagship Strategy Details
Investment Approach – Customised Discretionary Portfolio – Equity
Fund Manager – Mr. Nishant Vass
AUM – INR 19,212.11 crore
1-year Returns: 46.23%

#3 Ask Investment Managers (AUM – INR 24,995.46 crore)

Flagship Strategy Details
Investment Approach – ASK Indian Entrepreneur Portfolio
Fund Manager – Mr. Sumit Jain
AUM – INR 15,526.31 crore
1-year Returns: 27.17%
3-year Returns: 10.16%
5-year Returns: 18.30%

#4 Unifi Capital Private Limited (AUM – INR 23,885.36 crore)

Flagship Strategy Details
Investment Approach – Blended- Rangoli
Fund Manager – Mr. Baidik Sarkar
AUM – INR 16,757.94 crore
1-year Returns: 31.75%
3-year Returns: 17.50%
5-year Returns: 33.15%

#5 Quantum Advisors Pvt Ltd (AUM – INR 19,668.37 crore)

Flagship Strategy Details
Investment Approach – Q India Value Equity Strategy Constrained V
Fund Manager – I.V. Subramaniam
AUM – INR 19,392.36 crore
1-year Returns: 47.73%
3-year Returns: 20.20%
5-year Returns: 21.11%

#6 Abakkus Asset Manager LLP (AUM – INR 19,338.48 crore)

Flagship Strategy Details
Investment Approach – All Cap Approach
Fund Manager – Mr. Aman Chowhan
AUM – INR 7,182.15 crore
1-year Returns: 32.15%
3-year Returns: 20.02%

#7 Invesco Asset Management (India) (AUM – INR 17,165.53 crore)

Flagship Strategy Details
Investment Approach – RISE Portfolio
Fund Manager – Mr. Neelesh Dhamnaskar
AUM – INR 416.57 crore
1-year Returns: 45.61%
3-year Returns: 22.15%
5-year Returns: 24.67%

#8 White Oak Capital Management Consultants (AUM – INR 7,105.16 crore)

Flagship Strategy Details
Investment Approach – White Oak India Pioneers Equity Portfolio
Fund Manager – Mr. Chaitanya Kapur
AUM – INR 6,502.97 crore
1-year Returns: 34.29%
3-year Returns: 12.78%
5-year Returns: 24.62%

Top PMS in India – Conclusion

As you embark on the journey to achieve your investment goals, Portfolio Management Service (PMS) stands out as a powerful option, especially designed for High Net Worth Individuals (HNIs). However, a significant barrier exists for retail investors seeking equity exposure through PMS: a regulatory constraint that mandates a minimum investment of INR 50 lakhs. This financial requirement, enforced by regulatory authorities, remains firm, creating a challenge even for the best PMS services in India.

Portfolio Management Service (PMS) providers must swiftly communicate any relevant disclosures to their clients, regardless of whether that information is publicly accessible. While PMS offerings grant significant flexibility to substantial investors and High Net Worth Individuals (HNIs), they also come with higher fees compared to traditional mutual funds.