Portfolio Management
Services (PMS)
Advanced investment solutions providing specialized portfolio construction and professional oversight for the Indian market.
What is PMS?
Portfolio Management Services (PMS) is a professional service where qualified managers handle a focused investment portfolio tailored to specific objectives.
SEBI Regulated
Regulated under SEBI (Portfolio Managers) Regulations, 2020 (Amended Feb 2025).
Direct Ownership
Investors own securities in their own Demat account, not a pooled unit structure.
Minimum Investment
Regulatory minimum ticket size of INR 50 Lakhs in cash or securities.
Fiduciary Duty
Mandated to prioritize client interests with strict segregation of firm and client assets.
Service Models
PMS vs Mutual Funds vs Advisory
PMS
Portfolio Management Services
Segregated Portfolio. Direct ownership of securities in client’s own Demat account.
Min InvestmentINR 50 Lakhs
FeesMgmt Fee + Performance Fee (HWM). Op expenses capped at 0.50%.
SuitabilityHNI seeking customization and specific strategy exposure.
Mutual Funds
Pooled Investment Vehicle
Pooled Vehicle. Investors hold ‘Units’; underlying assets held by Trust.
Min InvestmentVery Low (INR 500+)
FeesTotal Expense Ratio (TER) capped by SEBI. No performance fees.
SuitabilityRetail to HNI seeking broad diversification with lower ticket size.
Inv. Advisory
Registered Investment Advisor (RIA)
Advice Only. Client executes trades personally. No RIA custody.
Min InvestmentNone (Fee-based)
FeesFixed fee or % of AUA. Strict caps apply. No distribution commissions.
SuitabilityInvestors wanting professional advice with execution control.
Who is PMS For?
Advanced portfolio management for investors requiring direct ownership of assets and professional fiduciary oversight.
Minimum Investment
Regulatory ticket size of INR 50 Lakhs as per SEBI (Portfolio Managers) Regulations.
Redemption & Liquidity
Open-ended structure with no regulatory lock-in. Subject to scheme-specific exit loads.
Direct On-boarding
Investors can opt for direct plans with Portfolio Managers to benefit from zero-commission structures.
Fiduciary Oversight
Managers adhere to strict code of conduct to ensure transparent and ethical wealth management.
Eligible Entities
PMS Service Models & Operations
Discretionary
Manager independently manages the portfolio based on the agreed mandate.
Non-Discretionary
Manager suggests ideas; final decision rests with the client for every trade.
Advisory
Manager provides research only; client handles all execution personally.
Dividends (IDCW) taxed at slab rates. Capital gains (STCG/LTCG) based on holding periods.
Mandatory independent Custodian for Discretionary & Non-Discretionary assets.
PMS Fee Structures & Expenses
Management Fee
Calculated as a percentage of the Assets Under Management (AUM).
Commonly ranges from 1% to 2.5% p.a.
Performance Fee
Profit-sharing above a pre-agreed “Hurdle Rate.”
Aligns Manager interest with Client returns.
Other Expenses
Includes Custody, Audit, and Brokerage fees.
Excluding brokerage & statutory levies.
A protective mechanism ensuring that Performance Fees are only charged when the portfolio value exceeds its previous peak (highest historical NAV). No fee is paid for recovering previous losses.
Client Onboarding Journey
Disclosure
DD & MITC shared.
KYC/AML
Identity verified.
Risk Profile
Suitability check.
IPS Draft
Policy Statement.
Agreement
Signing PMS & PoA.
Account Setup
Bank/Demat open.
Funding
INR 50L Min.
Portfolio Execution Process
Idea & Research
Team selects securities within the approved mandate via fundamental research.
Order Management
PM instructs the Dealing Desk via recorded lines or authorized internal channels.
Trade Execution
Execution via Broker (Pooled/Bulk vs. Individual account trades).
Compliance Check
Pre-trade limit checks and post-trade verification of best execution.
Allocation/Settlement
Trade allocation to individual clients and Custodian settlement (T+1).
Recordkeeping
Audit trail preservation including trade logs, contract notes, and order books.
Portfolio Managers with AUM > INR 1,000 Crores must use an automated Order Management System (OMS) to ensure clear audit trails and fair allocation.
Reporting & Disclosures
Mandatory provision at least 2 days before agreement signing.
Comprehensive view of portfolio health, returns, and total cost of ownership.
Direct proof of trade execution and asset tracking via third-party custodians.
Statutory requirement where an external CA verifies all portfolio transactions.
Mandatory public accessibility to manager metrics and complaints data.
Fees & Expenses Structure
Charged on average daily Assets Under Management.
Profit-sharing above a pre-agreed Hurdle Rate.
Statutory cap on general expenses (excluding brokerage).
Max permissible loads based on redemption tenure.
No upfront charges allowed directly or indirectly.
Risk Matrix
GDP shifts, interest rates, and geopolitical volatility.
Heavy exposure to single stocks or specific sectors.
High impact costs and depth issues in Mid/Small-caps.
System failures, cyber threats, and human error.
Broker/Custodian default or settlement failures.
Changes in SEBI norms or LTCG/STCG tax laws.
Grievance Redressal
Resolution Mechanism
We are committed to resolving investor queries within a specified turnaround time. Our structured process ensures your concerns are handled with priority.
Your primary point of contact for operational and account-related assistance.
Escalation for unresolved grievances. Direct email access for formal compliance-related complaints.
SEBI SCORES Portal
If your grievance remains unaddressed by the Portfolio Manager, you may lodge a complaint with SEBI through their centralized web-based system.
Access the SEBI Complaints Redress System (SCORES) for a transparent and time-bound resolution of your concerns.
Visit SCORES WebsiteEnd-to-End PMS Lifecycle
Discovery
Needs Analysis
Disclosures
DD & MITC Provision
KYC & Risk
AML & Profiling
Suitability
IPS & Strategy
Agreements
Contract & PoA
Setup
Bank & Demat
Funding
≥INR 50 Lakhs
Execution
Trade Placement
Allocation
Trade Settlement
Reporting
Quarterly Statements
Performance
HWM & Hurdle
Monitoring
Rebalancing
Exit
Withdrawal Request
Settlement
Final Audit & Transfer
FAQ & Glossary
No regulatory lock-in period exists for PMS. Exit Loads (3%, 2%, 1%) apply for early redemption within 3 years.
Manager performance uses TWRR, while individual account returns are reported via XIRR.
Yes, NRIs can invest subject to RBI/FEMA guidelines. A PIS (Portfolio Investment Scheme) account is typically required.
No. SEBI regulations strictly prohibit Portfolio Managers from charging any upfront fees or entry loads, directly or indirectly.
Customized professional management of a segregated portfolio of securities.
Assets Under Management. Total market value of all assets managed by the PM.
Time-Weighted Return. Eliminates the distortion of investor cash flows.
Actual return considering the specific timing of all inflows and outflows.
High Water Mark. Performance fees only on new profits above the peak value.
The minimum threshold return required before performance fees are charged.
Most Important Terms and Conditions. A summary of fees, risks, and terms.
SEBI’s centralized online platform for tracking investor complaints.
Online Dispute Resolution. Digital conciliation and arbitration (SMART ODR).
The legal obligation of the PM to act solely in the client’s best interest.
Statutory Disclosures
FinTrackk is a Business Associate (BA) of Axis Securities Limited (ASL). Portfolio Management Services are provided by Axis Securities Limited, a SEBI Registered Portfolio Manager.
Distributor Credentials
- Name of Distributor: FinTrackk
- APRN Code: APRN08336
- Status: Authorised Person / BA of ASL
Grievance Redressal
- Internal Resolution: 21-Day Timeline
- ASL Compliance: compliance.officer@axisdirect.in
- SEBI SCORES: scores.sebi.gov.in
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Investors have the option to onboard directly with ASL without any distribution fees.