Selecting the right Portfolio Management Service (PMS) is one of the most important financial decisions for any investor with ₹50 lakh or more to deploy. The challenge lies not in finding available options, but in understanding which PMS genuinely aligns with your financial goals and comfort with risk.

According to SEBI’s September 2025 Portfolio Managers Report, India now has over 2 lakh PMS client accounts,with strategy-wise AUM reported under a standard format  a sign of a maturing, transparent market for ₹50-lakh-plus investors. The industry’s size highlights the need for informed selection built on data, compliance, and consistency.

Before you begin shortlisting, ask yourself three key questions:

• Do you prefer a discretionary model (manager decides) or an advisory model (you approve trades)?
  
  

• What level of loss could you reasonably handle in a volatile year?
  
  

• Does the PMS disclose performance using TWRR and XIRR as per SEBI norms?

Key Takeaways at a Glance

Choosing a PMS becomes easier when you look for measurable facts rather than marketing claims. Keep these essentials in mind before going deeper:

• Minimum investment: ₹50 lakh, mandated by SEBI.
  
  

• Always look for TWRR-based returns with a benchmark, and XIRR in personal reports.
  
  

• Study risk-adjusted metrics such as Sharpe ratio, alpha, beta, and drawdown.
  
  

• Understand the fee structure, fixed or performance linked  and confirm that no up-front fees are charged.
  
  

• Shortlist only SEBI-registered portfolio managers; confirm listings on SEBI or APMI websites.
  
  

• Schedule a direct conversation with the fund team; genuine PMS firms encourage it.

What is PMS and When It Fits HNI Investors

A Portfolio Management Service (PMS) is a regulated arrangement where your investments are managed separately by a SEBI-registered professional according to a signed agreement. Unlike mutual funds, your securities are held in your own demat account, giving you transparency and ownership.

Types of PMS

• Discretionary PMS: The manager takes all buy-and-sell decisions within the agreed mandate.
  
  

• Non-Discretionary PMS: You approve every trade the manager recommends.
  
  

• Advisory PMS: You receive advice only and execute transactions yourself.

Who should consider PMS

PMS is designed for HNIs and family offices with ₹50 lakh + investible surplus who want customised portfolios, tax-lot control, and direct exposure to equities or debt instruments. It also suits investors who have already built mutual-fund portfolios and now want focused strategies.

To explore PMS basics in more depth, refer to Ckredence Wealth’s guide on Portfolio Management Services in India.

Steps to Select the Right PMS in India

Finding a PMS that truly serves your goals requires method, not intuition. The following seven steps combine SEBI compliance, risk understanding, and practical evaluation

1. Define your goals and risk limit

Begin by writing down why you are investing, growth, regular income, or legacy creation. Then decide how much temporary loss you can tolerate in a tough year. Knowing both helps align you with the right strategy.

2. Verify SEBI registration

Check the SEBI “Registered Portfolio Managers” list or APMI compendium. Registration ensures regulatory oversight, minimum net-worth standards, and audited disclosures.

3. Check performance format and consistency

Ask for audited factsheets showing Time-Weighted Rate of Return (TWRR) versus a benchmark for 1-, 3-, and 5-year periods. In your own statements, expect Extended Internal Rate of Return (XIRR) that reflects your cash flows.

4. Read the Disclosure Document carefully

Every PMS must share its SEBI-filed disclosure document describing strategy, fees, risks, and past audits. Reviewing it reveals transparency and professionalism.

5. Understand the fee structure

SEBI forbids up-front fees. Common models include:

• Fixed fee: 0.25 %–2.5 % per year.
  
  

• Performance fee: a share of profits above a hurdle rate (often 8–10 %).
  Ask about taxes and calculation periods before signing.

6. Evaluate the fund-management team

Meet the CIO or fund manager. Inquire how research ideas become portfolio decisions and how risks are reviewed. A strong process matters more than one-year returns.

7. Assess reporting and technology

Ensure the PMS provides periodic updates, audited performance data, and secure online access to your holdings, now standard for the industry.

You can also read about the factors affecting investment decisions in portfolio management to understand how each step connects to your financial plan.

SEBI’s Performance Reporting Rules

Transparent reporting is what separates credible PMS providers from marketing-driven ones. SEBI made uniform reporting compulsory so investors can compare managers on the same basis.

Why these rules matter

Before 2020, PMS firms used inconsistent return calculations. SEBI’s regulations now mandate TWRR for strategy performance and XIRR for individual client reports.

Explaining TWRR and XIRR in simple terms

• TWRR (Time-Weighted Rate of Return): Shows how well the strategy performed regardless of when you added or withdrew money. It isolates the manager’s skill.
  
  

• XIRR (Extended Internal Rate of Return): Reflects your actual personal return, accounting for cash inflows and outflows.

Other key requirements

• Every PMS must show its benchmark (e.g., Nifty 500 TRI) next to results.
  
  

• Audited data for at least three years must appear in the disclosure document.
  
  

• No up-front fee can be charged to clients.

When you review factsheets, ensure these elements are clearly stated, it’s your best safeguard for accountability.

12-Point Checklist Before You Invest

Choosing a PMS is easier when you treat it like a due-diligence exercise. Use this checklist to assess each provider objectively.

1. SEBI registration — Confirm on SEBI/APMI sites.
   
   

2. Investment universe — Equity, debt, or multi-asset clearly defined.
   
   

3. Performance record — 1-, 3-, and 5-year TWRR vs benchmark.
   
   

4. Risk profile — Max drawdown, volatility, beta, and Sharpe ratio.
   
   

5. Attribution — Top contributors and detractors in past years.
   
   

6. Fee disclosure — Fixed or performance-linked; hurdle rate shown; no up-front fees.
   
   

7. Operations — Custodian, broker panel, and compliance contact.
   
   

8. Audit findings — Mentioned in latest disclosure document.
   
   

9. Reporting — Monthly factsheets and quarterly review calls.
   
   

10. Tax handling — Capital-gains method and demat credit of securities.
    
    

11. Team depth — Key fund managers, research analysts, and experience.
    
    

12. Client feedback — References from existing investors where possible.

Tick each before signing a PMS agreement; it prevents most future issues.

Industry Data and What It Tells Investors

Verified market data can reveal whether the PMS industry is expanding responsibly. As per SEBI’s September 2025 report, India had around 2,02,000 PMS client accounts, a steady rise from 1.8 lakh a year earlier.

Assets under Management (AUM): SEBI’s official dashboard shows over ₹30 trillion managed under PMS mandates, split between discretionary, non-discretionary, and advisory categories.

Industry oversight: The Association of Portfolio Managers in India (APMI) compiles monthly compendia listing all registered managers, strategy types, and compliance status.

Regulatory tone: In August 2025, the SEBI Chairperson emphasised that “governance and transparency will define the next phase of PMS in India,” urging managers to standardise disclosures further.

For investors, these facts confirm two things ,the PMS ecosystem is growing fast, and SEBI’s data availability now makes comparison fair and factual.

How Ckredence Aligns PMS With Investor Goals

Ckredence Wealth Management structures its PMS solutions around client intent, risk level, and time horizon. Each approach is designed to balance risk control and growth potential through a documented framework.

Our Four Distinct Approaches

• All Weather: Focuses on stability across market phases; limits volatility.
  
  

• Diversified: Builds a broad, factor-balanced equity portfolio.
  
  

• Business Cycle: Rotates exposure according to earnings and liquidity cycles.
  
  

• ICE Growth: Concentrated in high-quality growth stocks with position discipline.
  
  

Every client receives a transparent TWRR vs benchmark report plus XIRR for personal performance. Fees range from 0.25 % to 2.5 % fixed or are performance-linked with a hurdle rate; no up-front charges apply.

With a 35-year legacy, ₹610 crore AUM, and 435+ clients, Ckredence serves HNIs through offices in Surat, Mumbai, and Vadodara, and other parts of the country combining in-person expertise with digital access.

Using the PMS Comparison Table

Comparing PMS options is easier when you view all key metrics side by side. The table below can help you organise discussions during shortlisting meetings.

Before filling this, download each PMS’s latest Disclosure Document from SEBI or APMI websites and cross-check data.

Common Mistakes to Avoid While Selecting a PMS

Even experienced investors can go wrong if they rely on surface impressions. Here are the most frequent errors and how to avoid them.

• Chasing short-term returns: One good year may hide earlier losses. Always check 1-, 3-, and 5-year data to understand consistency.
  
  

• Ignoring benchmarks: A PMS benchmarked to a narrow index may look better on paper. Confirm that the benchmark truly reflects its investment universe.
  
  

• Overlooking fees and hurdles: A low fixed fee may hide a high performance fee or unclear hurdle rate. Understand the full calculation and payment schedule.
  
  

• Neglecting disclosures: If TWRR, XIRR, or benchmark information isn’t clearly presented, treat it as a warning sign. Transparency equals accountability.
  
  

• Skipping direct interaction: Speaking only with distributors can lead to half information. Always talk to the fund manager or CIO before investing.
  
  

Why Ckredence Is the Preferred PMS Partner for HNIs

For over three decades, Ckredence Wealth Management has built trust among HNIs and family offices by combining regulatory clarity with practical investment design. Its PMS offerings reflect the principles SEBI wants investors to value,  transparency, discipline, and long-term wealth creation.

What Sets Ckredence Apart

• Regulatory trust: SEBI-registered Portfolio Manager (INP000007164) with complete compliance and audited TWRR/XIRR reporting standards.
  
  

• Proven experience: 35-year legacy in wealth management, managing ₹610 + crore in AUM and serving 435 + active clients (as of 30 September 2025).
  
  

• Structured approaches: Four PMS strategies, All Weather, Diversified, Business Cycle, and ICE Growth, tailored for varied risk profiles and market conditions.
  
  

• Transparent pricing: Fixed or performance-linked fee models with no up-front charges, fully aligned with SEBI’s latest PMS regulations.
  
  

• Human access: Direct CIO-led client interactions and physical presence across Surat, Mumbai, and Vadodara for hands-on portfolio reviews.
  
  

• Tech-enabled reporting: Real-time digital dashboards and timely performance reports for complete visibility.

Ckredence’s process-driven approach, combined with SEBI compliance and personalised interaction, positions it as one of the best portfolio management services for HNIs in India.

Conclusion

Selecting a PMS is not about predicting the best performer but identifying a manager who follows process, transparency, and discipline.

Focus on documented disclosure, consistent reporting, and clarity on fees and risks.
When decisions follow data, not emotion, your wealth compounds safely and sustainably.

FAQs

Q1. What is the minimum PMS investment in India?
₹50 lakh  as specified by SEBI PMS Regulations 2020.

Q2. How should PMS performance be shown?
Public reports must use TWRR versus a benchmark; client statements show .

Q3. Are up-front fees allowed?
No. SEBI disallows any up-front collection; only fixed or performance-linked fees are permitted.

Q4. How can investors verify a PMS provider?Visit SEBI’s list of registered portfolio managers or APMI’s monthly compendium for active licence details.