As of 2026, the Indian PMS industry has crossed ₹3.8 lakh crore in assets under management (AUM), according to SEBI reports cited by Banking Frontiers.

India's Budget 2026 doubled the individual investment limit for NRIs in listed Indian companies from 5% to 10%, while also strengthening the Portfolio Investment Scheme (PIS) framework, signalling a clear policy push to bring more NRI capital into Indian markets.

For Non-Resident Indians looking to invest in India's growth story, the window has never been more open.

• Are you an NRI with surplus capital looking for a structured, professionally managed route into Indian equities?

• Do you know which account type, NRE or NRO, is right for your investment goals and repatriation needs?

• Are you clear on how capital gains and dividends from PMS are taxed for NRIs in 2026?

These are the questions that determine whether your PMS investment in India works smoothly or runs into compliance issues.

This guide covers everything you need to know about investing in Portfolio Management Services as an NRI in 2026, from eligibility and documentation to taxation, repatriation rules, and how to get started.

Key Takeaways

• NRIs can invest in SEBI-regulated PMS with a minimum of ₹50 lakhs via NRE or NRO accounts

• A Portfolio Investment Scheme (PIS) account is mandatory for equity-based PMS investments

• Budget 2026 doubled NRI individual investment limits in listed Indian companies

• PMS offers direct ownership of securities; mutual funds give you units in a pooled fund

• LTCG is taxed at 12.5% above ₹1.25 lakhs; STCG at 20% TDS; DTAA benefits available with Form 10F and TRC

• NRE investments are fully repatriable; NRO repatriation is capped at USD 1 million per year

What Is PMS for NRI?

Portfolio Management Services (PMS) for NRIs is a SEBI-regulated investment solution where a qualified portfolio manager builds and manages a personalised portfolio of Indian securities on your behalf.

Your investments are held directly in your own Demat account, not in a pooled fund. This means every stock in the portfolio is in your name, giving you full transparency and direct ownership.

Unlike mutual funds, PMS in India is designed for high-net-worth investors who want customised strategies aligned to their specific goals, risk profile, and investment horizon. 

For NRIs, this structure also accommodates cross-border compliance requirements, including FEMA, RBI, and SEBI regulations, making it a structured and legally sound route to participate in India's markets from abroad.

Key Requirements for NRI PMS Investment in 2026

Before investing, NRIs must meet a specific set of eligibility and compliance conditions. Here is a clear overview:

For a detailed breakdown of minimum investment requirements, refer to our resource on Portfolio Management Services minimum investment.

Types of PMS Available for NRIs

NRIs can choose from three types of PMS based on how involved they want to be in day-to-day investment decisions:

1. Discretionary PMS

The portfolio manager has full authority to make investment decisions on your behalf without seeking your approval on each trade. 

This is the most commonly used type for NRIs because it allows the manager to respond to market changes quickly, regardless of time zone differences. 

Your pre-agreed investment strategy and risk profile guide every decision.

2. Non-Discretionary PMS

The portfolio manager researches and recommends investment opportunities, but you retain the final authority to approve or reject each trade. 

This model suits NRIs who have time and interest to stay involved in their portfolio decisions while still benefiting from professional research support.

3. Advisory PMS

The manager provides advice and recommendations only. You are responsible for executing all trades yourself. This is suitable for experienced investors who want professional insights but prefer full control over all transactions.

To understand how these models compare in detail, read our guide on discretionary vs non-discretionary PMS.

Why NRIs Should Invest in PMS in 2026

India's economic fundamentals make 2026 a particularly strong year for NRI investment.

The IMF forecasts India's economy to expand at 6.4% in 2025 and maintain the same growth rate in 2026, while RBI expects FY26 inflation at 3.7%, creating a rare combination of high growth and easing inflation. For NRIs, PMS offers several specific advantages in this environment:

• Professional Management Across Time Zones: NRIs cannot track Indian market movements daily. 

A PMS manager monitors your portfolio continuously, rebalancing when needed and acting on market opportunities without requiring your involvement

• Customised Portfolio Strategy: Every PMS portfolio is built around your specific goals, whether retirement planning, wealth preservation, generational transfer, or aggressive equity growth

• Direct Ownership and Transparency: Each stock is held in your personal Demat account. You can see exactly what you own at all times, unlike a mutual fund where you hold units in a pooled structure

• Compliance Handled for You: PMS providers manage KYC, FATCA declarations, FEMA compliance, and tax documentation on your behalf, significantly reducing the administrative burden of investing from abroad

• Potential for Higher Long-Term Returns: As per data from March 31, 2025, PMS strategies in the mid and small-cap space outpaced mutual funds by up to 15-20% over five years, creating ₹13+ crore more wealth on a ₹2.5 crore investment.

Step-by-Step Investment Process for NRIs in 2026

The process to invest in PMS as an NRI is structured and straightforward. Here are the steps:

Step 1: Select a SEBI-Registered PMS Provider Research providers based on investment philosophy, track record across market cycles, fee transparency, and NRI-specific compliance support. 

Always verify SEBI registration before proceeding. You can explore Ckredence Wealth's PMS service and investment approaches as a starting point.

Step 2: Complete Documentation and KYC Submit all required documents for KYC verification. FATCA declarations and FEMA compliance declarations are mandatory at this stage. 

Many providers offer remote KYC through video verification for NRIs living abroad.

Step 3: Open Demat, Trading, and PIS Accounts The PMS provider will assist you in opening a Demat account and a linked trading account in your name. 

A Portfolio Investment Scheme (PIS) account, approved by a designated bank and RBI, is required for equity-based PMS investments.

Step 4: Link Your NRE or NRO Bank Account Connect your NRE or NRO account to the PMS account. Investments through NRE accounts are fully repatriable. 

Investments through NRO accounts are repatriable up to USD 1 million per financial year after tax payment.

Step 5: Sign the PMS Agreement Review and sign the PMS agreement carefully. This document outlines the investment strategy, fee structure, exit terms, and all other conditions of the service.

Step 6: Transfer Funds and Begin Portfolio Construction Transfer the minimum investment amount of ₹50 lakhs or more from your NRE/NRO account to the PMS account. 

The portfolio manager then begins constructing your portfolio based on the agreed strategy. For a faster onboarding experience, visit our direct PMS onboarding page.

Taxation for NRI PMS Investors in 2026

Taxation is one of the most important considerations for NRIs before investing in PMS in India. The following rates apply for 2026:

1. Long-Term Capital Gains (LTCG)

Gains on listed equity held for more than 12 months are taxed at 12.5% on amounts exceeding ₹1.25 lakhs per financial year. No indexation benefit applies. 

This rate was revised upward from 10% in Budget 2024, effective July 23, 2024.

2. Short-Term Capital Gains (STCG)

Gains on listed equity sold within 12 months are taxed at 20% TDS. This rate was revised from 15% in Budget 2024.

3. Dividend Income

Dividends received from PMS holdings are taxed at 20% TDS for NRIs.

4. DTAA Benefits

India has Double Taxation Avoidance Agreements (DTAA) with 88 countries. NRIs can reduce their tax liability in India by claiming DTAA benefits. 

To do this, you must submit Form 10F and a Tax Residency Certificate (TRC) from your country of residence to your PMS provider before the financial year ends.

NRIs must also comply with tax filing obligations in their country of residence. Ckredence Wealth's NRI Desk provides end-to-end tax documentation support, including DTAA guidance and annual tax reporting assistance.

PMS vs Mutual Funds for NRIs

For NRIs with a corpus of ₹50 lakhs or more, PMS offers a higher level of customisation, transparency, and return potential compared to standardised mutual fund products. 

For a side-by-side view, read our resource on portfolio management services vs mutual funds.

2026 Investment Strategies, Repatriation Rules, and Key Risks

India's market in 2026 presents selective opportunities rather than broad-based momentum. 

Over 60% of NSE 500 stocks are still trading more than 20% below their 2024 peak levels, giving PMS managers the flexibility to concentrate where valuations remain reasonable, unlike index-linked products. 

Information Technology, Renewable Energy, Financial Services, and Capital Goods and Manufacturing are drawing the most PMS attention in 2026, driven by AI adoption, India's clean energy push, strong domestic flows, and PLI-led manufacturing growth. 

At Ckredence Wealth, our four investment approaches are built to capture these opportunities across market cycles.

On repatriation, the rules depend on your account type. NRE account investments are freely repatriable with no annual cap on principal or profits. 

NRO account repatriation is allowed up to USD 1 million per financial year after applicable taxes. All fund transfers must comply with FEMA regulations and go through RBI-designated bank accounts under the PIS framework. 

Your PMS provider and designated bank manage this on your behalf.

Before committing capital, NRIs should be aware of five key risks. Market risk means no strategy guarantees returns. 

Manager risk makes SEBI registration and track record verification essential. Liquidity risk applies to mid and small-cap holdings that may be harder to exit quickly. Currency risk can reduce actual returns at the time of repatriation. 

Regulatory risk covers changes in SEBI, RBI, or FEMA rules that can affect your investment terms. Working with a provider like the Ckredence Wealth NRI Desk helps you stay ahead of all of these.

Why Should You Choose Ckredence Wealth for NRI PMS?

NRIs need more than a fund manager. They need a partner who understands the full complexity of cross-border investing, from FEMA compliance and DTAA guidance to portfolio strategy and repatriation planning.

What We Offer:

• Four SEBI-registered PMS strategies, All Weather, Diversified, Business Cycle, and ICE Growth, built for different market cycles and investor goals

• Dedicated NRI Desk with support for NRE/NRO account setup, KYC, FATCA, and FEMA compliance

• End-to-end tax documentation support including DTAA guidance and capital gains reporting

• ₹805+ Crores in AUM managed across 376+ active clients with 37 years of wealth management experience

• Transparent fee structures, fixed and performance-linked, with full reporting and no hidden charges

• Branch presence in Surat, Mumbai, and Vadodara with dedicated relationship managers

For NRIs who want professional equity management in India backed by regulatory expertise, Ckredence Wealth brings both under one roof.

Ready to start? Schedule a Consultation with our NRI team today.

Conclusion

PMS for NRI in 2026 is one of the most structured and transparent routes available for Non-Resident Indians to invest in Indian equity markets. With direct ownership of securities, customised portfolio strategies, professional management, and a clear regulatory framework under SEBI, PMS gives NRIs meaningful control over their Indian wealth.

The process requires the right documentation, the right account type, and the right SEBI-registered provider. Getting all three right from the start ensures your investment is legally sound, tax-efficient, and aligned with your long-term financial goals.

FAQs

Can NRIs invest in PMS in India in 2026?

Yes. NRIs are eligible to invest in SEBI-regulated PMS in India through NRE or NRO bank accounts under the Portfolio Investment Scheme (PIS) framework, subject to KYC and FEMA compliance.

What is the minimum investment for PMS for NRI in India?

The minimum investment for PMS in India is ₹50 lakhs per client, as mandated by SEBI under the Portfolio Managers Regulations, 2020. This applies equally to resident and non-resident Indian investors.

How is PMS taxed for NRIs in India in 2026?

NRIs are subject to 20% TDS on short-term capital gains, 12.5% on long-term capital gains above ₹1.25 lakhs, and 20% TDS on dividends. DTAA benefits can reduce the tax burden with Form 10F and a Tax Residency Certificate.

What is the difference between NRE and NRO accounts for PMS investment?

NRE account investments are fully repatriable, meaning both principal and profits can be sent abroad freely. NRO account investments allow repatriation of up to USD 1 million per financial year after applicable taxes are paid.