PMS is a professionally managed investment service for investors committing ₹50 lakh or more, where a SEBI-registered Portfolio Manager builds and runs a portfolio of securities held in your own name. DhanTarang holds APRN code APRN07740 with validity upto 11/11/2028 and helps you compare Portfolio Managers and strategies, complete onboarding, and stay serviced through the life of the investment.
Portfolio Management Service (PMS) is an investment service in which a SEBI-registered Portfolio Manager builds and manages a portfolio of stocks, bonds or other securities on behalf of a single investor. Unlike a Mutual Fund, where your money is pooled with other investors, a PMS portfolio is held in your own demat account, in your own name. SEBI prescribes a minimum investment of ₹50 lakh.
Because the portfolio belongs to you rather than to a pooled scheme, the Portfolio Manager can build it around your objective, your time frame and your existing holdings, rather than around a fixed scheme mandate that applies to thousands of investors at once.
PMS is generally used by High Net Worth Individuals, family offices, HUFs, NRIs and corporates who have already built a core portfolio and want a concentrated, actively managed strategy alongside it.
Each SEBI-registered Portfolio Manager runs one or more strategies, with a stated investment approach, typical holding period and risk profile. This is where our team helps you compare.
You enter into an agreement directly with the Portfolio Manager, which sets out the mandate, the fee structure and the reporting you will receive.
A dedicated demat and bank account is opened for the PMS. Every security bought under the strategy sits in your own name, not in a pooled scheme.
Under a Discretionary mandate, the Portfolio Manager transacts without seeking approval each time. Under a Non-Discretionary mandate, each transaction needs your consent.
You get portfolio statements, transaction-level reporting and periodic performance reporting, plus access to the Portfolio Manager for review discussions.
SEBI recognises three kinds of PMS, and the difference is simply who makes the final call on each transaction.
The Portfolio Manager makes investment decisions within the agreed mandate. You do not need to approve every individual transaction.
Investors who want to delegate portfolio decisions fully to a professional Portfolio Manager.
The Portfolio Manager recommends investments, but you retain control and approve each transaction before it is executed.
Investors who want professional portfolio input while retaining the final decision on every trade.
The Portfolio Manager provides investment advice, research and strategy input. You remain responsible for executing the trades yourself.
Investors who have their own execution setup and want professional research and strategy guidance.
The key difference between these PMS structures is the level of decision-making control retained by the investor.
Because a PMS portfolio is held in your own name, tax works differently from a Mutual Fund. Each purchase and sale made by the Portfolio Manager is treated as your own transaction, so capital gains arise as and when securities are sold within the portfolio — not only when you exit the PMS.
Gains on listed equity shares are taxed as short-term or long-term capital gains depending on the holding period of each security, and the Portfolio Manager provides a capital gains statement for your return. Because tax arises at the security level, portfolio turnover affects your tax position in a way it does not with Mutual Funds.
Tax treatment depends on your personal circumstances and on the rules in force at the time. Please consult a qualified tax professional before making a decision based on tax treatment.
DhanTarang Fintech Pvt. Ltd. is a PMS distributor holding APRN code APRN07740. The portfolio itself is managed by a SEBI-registered Portfolio Manager, who you contract with directly. Our role runs alongside that relationship.
We help you understand how different strategies are constructed, what they hold, how they charge, and which mandates match what you are trying to do.
PMS onboarding involves the PMS agreement, the Disclosure Document, KYC, and opening a dedicated demat and bank account. We coordinate it end to end.
Additions, partial withdrawals, reporting queries, nomination updates and review meetings — one point of contact instead of chasing paperwork.
Your PMS sits alongside your Mutual Funds, AIF, Bonds, NCDs and Market Linked Debentures on the DhanTarang platform, so you see the whole picture in one place.
PMS, or Portfolio Management Service, is an arrangement where a SEBI-registered Portfolio Manager builds and manages a portfolio of securities for one investor. The securities are held in your own demat account, in your own name, rather than in a pooled scheme. SEBI prescribes a minimum investment of ₹50 lakh.
The minimum investment in PMS is ₹50 lakh, as prescribed by SEBI. This can be contributed as cash or as an existing portfolio of securities, subject to what the Portfolio Manager accepts. Individual Portfolio Managers may set a higher minimum for particular strategies.
In a Mutual Fund, your money is pooled with other investors and you hold units of the scheme. In PMS, the securities are bought and held in your own name, and the portfolio is built to your mandate. A Mutual Fund SIP can start at ₹500 a month, while PMS requires ₹50 lakh. Tax also works differently: PMS gains arise as securities are sold within the portfolio, while Mutual Fund gains arise when you redeem your units.
There are three. In Discretionary PMS the Portfolio Manager transacts without seeking approval for each trade, within the agreed mandate. In Non-Discretionary PMS the Portfolio Manager recommends and you approve each transaction. In Advisory PMS the Portfolio Manager only advises and you execute the trades yourself. Discretionary PMS is the most common in India.
PMS fees are agreed directly with the Portfolio Manager and are usually structured as a fixed management fee, a performance-linked fee above an agreed hurdle rate, or a combination of the two. On top of the management fee, the account carries brokerage, custodian and demat charges, statutory levies, and an exit load if you withdraw within the initial period stated in your agreement. Ask for the full fee schedule in writing before signing.
PMS is regulated by SEBI, the Portfolio Manager must be registered, and your securities are held in your own name with an independent custodian, so the structure is well governed. Returns, however, are not assured. PMS portfolios are usually more concentrated than Mutual Fund schemes, which means they can move more sharply in both directions.
PMS is designed for a multi-year horizon, but you can generally make partial or full withdrawals subject to the terms of your PMS agreement, the minimum balance requirement, and any exit load applicable within the initial period. Withdrawals involve selling securities, so the timing affects the price you realise.
PMS generally suits High Net Worth Individuals, family offices, HUFs, NRIs and corporates who can commit ₹50 lakh or more, already hold a core portfolio, and are comfortable with a concentrated, actively managed strategy. It is not usually a first investment.
No. DhanTarang Fintech Pvt. Ltd. is a PMS distributor holding APRN code APRN07740, validity till 11/11/2028. The portfolio is managed by a SEBI-registered Portfolio Manager, with whom you contract directly. DhanTarang helps you compare Portfolio Managers and strategies, complete onboarding, and stay serviced. We are not a SEBI Registered Investment Adviser.
Speak to our team about your objective, time frame and the amount you plan to commit. We will help you compare Portfolio Managers and strategies, and coordinate the PMS agreement, Disclosure Document, KYC, and the opening of your dedicated demat and bank account. Call +91 7304343927 or book an appointment.
If you are considering a PMS allocation, the useful first conversation is about your objective, your time frame and how PMS would sit alongside what you already hold. There is no fee to you for that conversation.
