As your wealth grows and your financial needs become more complex, traditional approaches like self-management or mutual fund investing may no longer serve you efficiently. For high-net-worth individuals (HNIs), Portfolio Management Services (PMS) offer tailored investment strategies, greater transparency, and access to seasoned professionals. But how do you know when it’s time to make the switch?
This article outlines 8 key signs that indicate it’s time to consider moving to PMS — along with real-world examples, benchmarks, and supporting data from industry reports.
Your Investment Corpus Has Grown Beyond ₹50 Lakhs
Why it matters:
SEBI regulations mandate a minimum investment of ₹50 lakhs in PMS accounts. This threshold ensures that PMS strategies remain focused on HNIs who can benefit from custom portfolio management.
Data Insight:
- According to SEBI’s PMS Report (2024), over ₹5.53 lakh crore is managed under PMS, with the majority of inflows coming from portfolios between ₹50L and ₹5 Cr.
- Mutual funds charge low entry barriers (₹500–₹5,000), but do not offer customization.
Example:
If your portfolio exceeds ₹75 lakhs, self-managing becomes inefficient due to:
- Lack of real-time strategy alignment
- Poor tax harvesting
- Unsystematic diversification
PMS offers bespoke equity, multi-asset, and sector-specific strategies for higher capital.
You Want a Tailored Investment Strategy
Why it matters:
Mutual funds cater to the masses. PMS builds a personalized strategy aligned with your:
- Risk tolerance
- Cash flow goals
- Tax planning
- Ethical preferences (e.g., ESG filters)
Real-World Example:
Dezerv’s PMS crafts equity portfolios based on the client’s financial planning. If an investor prefers capital preservation over growth, Dezerv tilts the allocation towards blue-chip, dividend-paying stocks with low beta.
In contrast, mutual funds cannot modify allocations per individual preference.
You Lack Time or Expertise to Actively Manage Wealth
Why it matters:
Self-managed investing requires:
- Continuous market tracking
- Equity research
- Rebalancing
- Behavioral discipline (to avoid panic-selling)
Most professionals and entrepreneurs lack the time and analytical bandwidth for this.
Example:
A CXO earning ₹80L annually may lose ₹8–₹10L in opportunity cost by trying to self-manage a ₹1 Cr portfolio ineffectively, missing alpha opportunities or overexposing themselves during volatile markets.
With PMS, experienced managers like Dezerv or Marcellus PMS manage portfolios using tested frameworks (e.g., CCP or LCP).
Your Portfolio Performance Has Plateaued
Why it matters:
If your SIPs and MF investments are underperforming Nifty 50 or Nifty Midcap over the last 3–5 years, it’s time to evaluate whether active, concentrated strategies can generate alpha. You can even check and maximize return via SIP calculator for better comparison.
Data Comparison:
| Investment Type | 5-Year CAGR (As of 2024) |
| PMS – Multicap (Top Quartile) | 17.5% – 22.3% |
| Mutual Funds – Multicap | 13.5% – 15.2% |
| Nifty 50 TRI | ~13.9% |
Source: PMSBazaar Report
Example:
A ₹50L investment in a high-performing PMS in 2019 would now be worth over ₹1.1 Cr, compared to ₹93L in a typical mutual fund.
You Want Greater Transparency and Direct Ownership
Why it matters:
With PMS:
- Securities are held directly in your name (vs units in mutual funds)
- Investors receive detailed quarterly reports with transaction-level insights
- You can review stock-level breakdowns at any time via platforms like Dezerv or ASK PMS
Added Value:
This transparency allows:
- Sector-specific insights
- Exit strategy discussions
- ESG alignment
- Real-time rebalancing
Real Example:
PMS clients can opt to exclude sin stocks (alcohol/tobacco) or over-exposed PSU sectors, a flexibility unavailable in MF schemes.
You Have Complex Financial Goals
Why it matters:
If you’re:
- Planning a mix of early retirement, second home, or international education
- Managing inter-generational wealth or estate transfers
…then PMS can design diversified portfolios spanning:
- Domestic equity
- International ETFs
- Structured debt instruments
- REITs/InvITs
Example:
White Oak Capital PMS offers global diversification through feeder funds and GIFT City structures — ideal for NRIs or globally exposed HNIs.
Mutual funds do not offer this kind of strategic tailoring.
You Seek Tax-Efficient Investing
Why it matters:
Unlike MFs (where taxation is pass-through), PMS allows for:
- Individual security sales to optimize tax (harvesting losses)
- Deferring gains across FYs
- Structuring around dividend or interest incomes
Tax Comparison:
| Criteria | Mutual Fund | PMS |
| LTCG on Equity | 10% above ₹1L | 10% on listed equity gains |
| STCG | 15% | 15% |
| Tax Harvesting | Not possible | Yes – Fully Customizable |
| Reporting Responsibility | Handled by AMC | Investor files own capital gains |
Example:
A PMS can delay equity gains till April to push tax out by a financial year — helping reduce annual liability and giving better post-tax returns.
You Want Direct Access to Your Portfolio Manager
Why it matters:
In mutual funds, you are a unit holder — your interaction is limited to a relationship manager.
In PMS, you are the client — and have:
- Direct access to the Portfolio Manager
- Quarterly strategy calls
- Real-time performance updates
Example:
Dezerv hosts quarterly webinars with fund managers, while Marcellus offers investment thesis notes per stock — helping investors understand rationale behind every move.
This level of interaction helps build trust and tailor responses during volatile periods (like COVID crash or geopolitical disruptions).
Real PMS Providers to Consider (India, 2025)
| PMS Provider | Key Strength | Min Investment |
| Dezerv | Tech-enabled, goal-based, low-cost strategy | ₹50 Lakhs |
| Marcellus PMS | Clean Capital Allocation, focused 10–15 stock | ₹50 Lakhs |
| Motilal Oswal | Large ecosystem, multiple PMS styles | ₹50 Lakhs |
| ASK Investment | Sectoral insight, long-term alpha orientation | ₹50 Lakhs |
| White Oak | Global PMS, high alpha strategies | ₹50 Lakhs |
Conclusion: When is the Right Time?
If:
- Your wealth is growing beyond ₹50L+
- You feel underserved by mutual funds or robo-advisory platforms
- You want better control, tax optimization, and personalized strategies
Then, PMS is the logical next step.
It’s not just about higher returns — it’s about building a smarter, structured, tax-aware wealth strategy.