Types of PMS in India: Discretionary, Non-Discretionary & Advisory Explained
Portfolio-based investing has evolved significantly over the last decade, especially among high-net-worth investors seeking customization and professional expertise. As capital markets mature, investors are increasingly exploring pms services in india to move beyond standardized products and gain greater control over their portfolios.
Understanding how pms services in india work and the different structures available is essential before committing capital. This guide breaks down the types of PMS in India, explains how each model functions, and helps investors choose the right approach based on involvement, risk appetite, and long-term goals.
Explore the different PMS models available for Indian investors
Understanding PMS Services in India
PMS services in india are professionally managed investment solutions where portfolios are created and managed in the name of the investor. Unlike pooled vehicles, these portfolios are personalized and aligned with specific objectives, timelines, and risk profiles.
The growing demand for pms services in india is driven by investors who want transparency, direct equity ownership, and strategic decision-making tailored to their financial journey.
What Is Portfolio Management in the Indian Context
• PMS involves direct investment in equities, debt, or other securities
• Each portfolio is uniquely structured for the investor
• Investments are held in the investor’s own demat account
• Portfolio managers actively track and rebalance holdings
Why Investors Choose PMS Services in India
Customized investment strategies
Professional stock selection and monitoring
Greater transparency compared to pooled products
Alignment with long-term financial goals
Types of PMS in India Explained
There are three primary types of PMS in India, each offering a different level of control and involvement. Understanding these structures is key to selecting the right pms services in india based on how actively an investor wishes to participate.
Discretionary PMS India
Discretionary pms india is the most popular structure among investors who prefer professional decision-making without daily involvement. In this model, the portfolio manager has full authority to make investment decisions on behalf of the investor.
Discretionary pms india is commonly chosen by individuals who value expertise, time efficiency, and long-term portfolio discipline.
How Discretionary PMS India Works
Investor defines objectives and risk tolerance
Portfolio manager designs an investment strategy
All buy and sell decisions are executed independently
Regular portfolio updates and performance reports are shared
Key Features of Discretionary PMS India
• Full decision-making authority with the manager
• Active portfolio management
• Faster execution during market movements
• Suitable for long-term wealth creation
Pros and Cons of Discretionary PMS India
Pros
• Minimal investor involvement
• Professional risk management
• Efficient response to market volatility
Cons
• Limited control over individual trades
• Requires strong trust in the portfolio manager
Read More: What is PMS in Stock Market A Complete Guide in 2025
Non-Discretionary PMS in India
Non-discretionary PMS offers a balanced approach between professional guidance and investor control. Here, the portfolio manager recommends investments, but execution happens only after investor approval.
This structure appeals to investors who understand markets and want oversight while still benefiting from pms services in india.
How Non-Discretionary PMS Functions
Portfolio manager identifies opportunities
Investment proposals are shared with the investor
Investor approves or rejects recommendations
Trades are executed post-confirmation
Advantages of Non-Discretionary PMS
• Greater transparency in decisions
• Investor retains execution control
• Suitable for experienced investors
Limitations of Non-Discretionary PMS
• Slower response to market changes
• Requires active investor participation
• Missed opportunities during volatile phases
Read More: Difference Between SIP and Mutual Fund Explained: A Complete Guide for New Investors
Advisory PMS Explained
Advisory PMS focuses purely on guidance rather than execution. The portfolio manager provides recommendations, while the investor independently executes trades.
This model of pms services in india is ideal for investors confident in execution but seeking expert insights.
Role of an Advisory PMS Provider
• Asset allocation guidance
• Stock and sector recommendations
• Risk management strategies
• Periodic portfolio reviews
Who Should Choose Advisory PMS
DIY investors with market knowledge
Professionals managing their own portfolios
Investors seeking lower-cost pms services in india
Read More: How to Buy and Sell Unlisted Shares in India: A Step-by-Step Investor’s Guide
Comparison of Different Types of PMS in India
Each structure serves a different investor profile. Choosing among the types of PMS in India depends on experience, time availability, and desired involvement.
Read More: Comparing the Best PMS Companies in India: Performance, Fees, and Services Explained
Regulatory Framework Governing PMS Services in India
PMS services in india are regulated by SEBI to ensure transparency and investor protection. These regulations set eligibility criteria, reporting standards, and compliance requirements.
SEBI oversight enhances trust in pms services in india and ensures ethical portfolio management practices.
Key SEBI Guidelines for PMS
• Minimum investment threshold
• Mandatory disclosures and reporting
• Performance transparency
• Compliance audits
Costs and Fees Associated With PMS Services in India
Fees vary across providers and depend on portfolio size and strategy. Understanding cost structures is crucial before selecting pms services in india.
Common Fee Models
Fixed management fee
Performance-linked fee
Hybrid fee structure
How to Choose the Right Type of PMS in India
Selecting the right structure among the types of PMS in India requires aligning investment goals with involvement preferences. Investors must evaluate risk appetite, market knowledge, and time availability.
Professional guidance can help determine whether discretionary pms india or other models are better suited to specific objectives.
Factors to Consider Before Selecting PMS
• Financial goals
• Risk tolerance
• Time commitment
• Market experience
Learn More: Equity Fund Investment vs. Mutual Fund: Which Is Better for 2025?
Real-Life Examples of PMS Use Cases
Practical examples help illustrate how different investors use pms services in india based on personal circumstances.
Example Scenarios
A business owner chooses discretionary pms india for hands-off management
A market-savvy professional selects non-discretionary PMS
An experienced investor opts for advisory PMS
Future of PMS Services in India
The demand for pms services in india is expected to grow with increasing financial awareness, digital reporting tools, and customized wealth solutions. As investor expectations evolve, portfolio management will become more data-driven and transparent.
Connect with us to discuss the PMS strategy that fits your goals
Frequently Asked Questions
What are PMS services in india?
PMS services in india offer professionally managed, customized investment portfolios held directly in the investor’s account.What are the main types of PMS in India?
The types of PMS in India include discretionary PMS India, non-discretionary PMS, and advisory PMS.How does discretionary pms india differ from other PMS types?
Discretionary pms india allows the portfolio manager to make all investment decisions independently.Are PMS services in india suitable for long-term investors?
Yes, pms services in india are designed for long-term wealth creation with strategic portfolio management.Is discretionary pms india risky?
Risk depends on market conditions, but discretionary pms india includes professional risk management.Who should avoid PMS services in india?
Small investors or those uncomfortable with market risk may find PMS unsuitable.What is the minimum investment for PMS in India?
SEBI mandates a minimum investment threshold for PMS participation.Can investors switch between types of PMS in India?
Yes, investors can change PMS structures based on evolving needs.How transparent are PMS services in india?
PMS providers offer detailed performance reports and disclosures.Is advisory PMS better than discretionary pms india?
The better option depends on the investor’s experience and involvement preference.
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