I still remember the day I first heard about investing through a Portfolio Management Service (PMS). I had been dabbling in mutual funds and fixed deposits for a few years, comfortable with the steady pace of returns. Then a friend mentioned that one could go with a PMS — and that changed my view of investing in India.
My PMS Journey & What I Learned
A PMS, or Portfolio Management Service, refers to a professional service where a portfolio manager builds a customised investment portfolio for you — unlike a mutual fund where your money is pooled.
When I looked at past performance, I found that the best PMS schemes in India had out-performed top mutual funds over 10 years — for example, “the best PMS returned ~35% vs ~26% for top equity mutual funds.”
However, I’d also discovered that PMS comes with caveats: higher minimums (often ₹50 lakh and above) and higher risk.
At PMSAIFWorld I’ve seen these returns being tracked and compared. What I learned:
Returns vary widely — not all PMS outperform. In one recent snapshot, out of 391 PMS strategies, only 67 beat the benchmark. r
Because of customisation, PMS requires active trust in the manager, and you must be comfortable with less liquidity and more concentrated portfolios.
For serious investors with higher risk appetite and big capital, PMS can be a useful tool in India’s equity-rich market.
What Does This Mean for 2025 & Beyond?
As we look into 2025, India’s investment landscape is full of opportunity — but also full of choices. According to government-backed reports, growth areas include technology, renewables, healthcare and consumer goods.
So, where do I believe you can pick your investment game-plan?
Here are the options I keep going back to:
Equity Mutual Funds – For most investors, this remains a solid option. Industry lists highlight mutual funds and diversified equity funds as among the best investments for 2025.
PMS – If you are a high-net-worth investor (and comfortable with risk and higher capital), PMS remains an option. With items tracked at PMSAIFWorld, you can compare returns and risk profiles.
Government-backed safer vehicles – PPF, NPS, ULIPs or bonds for that stable base. They offer steadier returns, lower risk.
Thematic or growth sectors – Because India is going through structural changes, sectors like renewables, tech, healthcare could give higher growth. Add a portion of your portfolio here as a “growth tilt”.
Diversification & risk-management – Whatever you choose, diversify: don’t put all money into one PMS, or one stock, or one sector. Make sure your risk profile matches.
My Practical Advice (from what I did)
I started with mutual funds for ~80% of my investable surplus.
Then I earmarked ~10–15% for high-risk/higher-return avenues (PMS or thematic equity) because I believed India’s growth story.
I kept ~5–10% in safer options to sleep well at night.
I regularly check platforms like PMSAIFWorld to compare PMS returns, fees, consistency.
I asked: What is the historical return? How many years has it beaten the benchmark? What is the drawdown in downturns?
I accepted that higher returns mean higher swings — and thus I set a time-horizon of 5–7+ years.
FAQ
Q: What are PMS returns in India typically like?
A: PMS returns vary a lot. Some of the best PMS schemes have delivered ~30%+ annualised over long periods, compared to ~20% for top mutual funds. But many do not outperform, so past performance isn’t a guarantee.
Q: Is PMS suitable for small investors?
A: Usually not. Many PMS require minimum investment of ~₹50 lakh or more. For smaller savings, mutual funds or hybrid options may make more sense.
Q: What are the best investment options in India in 2025?
A: Based on current trends, good options include diversified equity mutual funds, government-backed long-term instruments (PPF, NPS), thematic plays in tech/renewables/healthcare and for qualified investors, PMS.
Q: How should I decide between PMS vs mutual funds?
A: Ask yourself: how much capital do I have? How much risk can I tolerate? Do I want customisation? Am I comfortable with less liquidity? If you answer “yes” to those and have the capital, PMS might be considered; if not, stick with mutual funds.
Q: How does PMSAIFWorld help?
A: At PMSAIFWorld, you can compare PMS returns, view analytics, risk-return matrices and make more informed decisions about which PMS (if any) you might pick.