According to current prices, Tamil Nadu's Gross State Domestic Product (GSDP) for 2025–2026 is expected to reach Rs 35,67,818 crore, representing a 15% increase over the updated estimates for 2024–2025.

Meanwhile, India's discretionary PMS AUM has been increasing quickly, with the head of the market regulator highlighting an annual growth rate of about 23%. That signals rising demand for professional equity mandates.

Three questions we will answer clearly:

• Are SEBI‑registered PMS products right for your goals and risk?

• What do fees, performance reporting, and taxes look like in 2025?

• Which Chennai‑based PMS names should be on your shortlist?

This guide brings SEBI rules, fee maths, 2025 tax rates, and a Chennai context into one place. We also point you to SEBI lists and local PMS offices so you can verify details yourself.

Key Takeaways:

• SEBI requires a ₹50 lakh first investment; top‑ups must meet this rule.

• Management fee plus performance fee, with high‑water mark and clear caps on associate charges.

• Firm‑level returns must follow TWRR, while client reports share XIRR.

• Equity gains currently use 12.5% LTCG over a ₹1.25 lakh annual limit and 20% STCG.

• Chennai’s mix of auto, electronics, and IT creates strong listed‑equity themes.

• Cross‑check any PMS on SEBI’s registry and review disclosure documents. 

What are the Portfolio Management Services in Chennai?

PMS is a SEBI‑regulated mandate where a licensed portfolio manager runs a bespoke equity or multi‑asset portfolio in your own demat. Strategies are documented as Investment Approaches with a defined style and benchmark.

SEBI lays down who can manage portfolios, what they can invest in, how they must report, and how fees get computed. This makes PMS a formal, rules‑driven service rather than a casual stock‑picking arrangement.

Types of PMS

When you invest in PMS, there are three formats set by SEBI. Each format decides who takes the final call on buying and selling shares.

1. Discretionary PMS

Here, the portfolio manager makes all investment decisions on your behalf. You don’t need to approve each trade. Most investors in Chennai prefer this option because it’s convenient and holds the manager fully accountable.

2. Non-Discretionary PMS

In this model, the manager gives advice and suggests trades, but you make the final decision. This works well if you want more control and have time to review suggestions.

3. Advisory PMS

This is only about giving advice. The manager recommends a strategy, but you execute all trades yourself. It suits people who already have access to strong execution platforms and want just the expertise.

Minimum Investment, Fees, and How SEBI Says to Compute Performance

PMS in India has a clear entry rule. The first single investment must be ₹50 lakh or more. Clients onboarded earlier must meet ₹50 lakh for any top‑up. Partial withdrawals can’t take the account below ₹50 lakh.

Fee models you will encounter

PMS fees typically include a management fee and a performance fee over a hurdle with a high‑water mark. SEBI also caps charges through associates (broking, demat, custody) to keep costs in check.

SEBI requires performance to be reported net of all fees and taxes in marketing material and on websites no glossy, pre‑fee numbers. That improves like‑for‑like comparisons.

How the Performance Fee Works 

Assume a ₹50 lakh start, a 10% hurdle, and a 20% performance fee. If your year‑end profit is ₹10 lakh, the fee applies only to the profit over the hurdle (₹5 lakh here), yielding ₹1 lakh in performance fee. The high‑water mark prevents paying the fee again on the same gains later.

Close this section with one check

Ask the PMS for a fee illustration based on your capital, and confirm that the high‑water mark and hurdle are documented in the agreement and disclosure file.

PMS Taxation for Chennai Investors in 2025

PMS assets sit in your demat, so taxation is at the investor level. Equity gains are taxed like listed shares. That is the key difference from pooled vehicles that may face past-level tax.

1. Equity Gains Today

As of mid‑2025, listed‑equity LTCG is 12.5% on gains above ₹1.25 lakh a year, while STCG is 20%. Surcharge and cess apply as normal. Always check your latest slabs before filing.

2. Debt, Bonds, and Other Income

Interest is taxed at your slab. For certain debt or unlisted instruments, holding period rules decide whether gains are short‑term or long‑term and the rate applied. Confirm instrument‑wise tax with your CA.

3. NRI Note

NRIs using PMS should confirm PIS/Re‑PIS or equivalent bank routes, repatriation status, and TDS on gains and income. Many Chennai managers outline NRI steps on their sites

How to Evaluate Portfolio Management Services in Chennai

Selecting a PMS is not only about past returns. The process quality and reporting discipline matter more over time.

1. Track Record and Reporting Standards

Per SEBI’s framework, PMS firms report firm‑level performance using TWRR and share XIRR for each client account. This separates strategy skill from cash‑flow timing. Marketing and website numbers must match what’s filed with SEBI.

Ask for drawdown history, volatility, and rolling returns across cycles. Check if quarterly client reports arrive on time with holdings, fees, and rationale for major moves.

2. Risk Controls and Operations

Look for position limits, liquidity filters, and a documented sell policy. On costs, SEBI caps annual charges through any associate at 20% by value per service. That reduces conflict on dealing and custody.

3. Compliance and Disclosures

Confirm the SEBI registration number on the regulator’s list and read the Disclosure Document. Prefer managers who publish an Investor Charter, audited performance, and clear fee annexures.

4. Lead‑in to the Local View

Once the hygiene checks are set, align the PMS approach to Chennai’s economic strengths and your goals. Here’s the local lens.

Top Portfolio Management Services in Chennai in 2025 

Chennai has a growing community of investors looking for SEBI-registered PMS providers who can manage wealth in a transparent, structured, and performance-driven way. Below is a list of some of the well-known PMS providers with a Chennai presence.

1. Ckredence Wealth 

Ckredence Wealth is a trusted PMS partner for many high-net-worth investors in Chennai. The firm focuses on SEBI-registered strategies and a data-driven approach. Its key strength is creating customised portfolios backed by sector analysis relevant to Tamil Nadu’s economy: automobiles, IT services, manufacturing, and financials.

Key Highlights:

• Works only with SEBI-registered PMS to give legal and regulatory safety.

• Offers comparison dashboards that show fees, TWRR vs benchmark, and XIRR (client-level returns).

• Helps with ₹50 lakh+ onboarding, including NRI-friendly documentation and PIS account support.

• Maintains a focus on capital protection while aiming for steady long-term compounding.

• Provides end-to-end support: selection, fee negotiations, and quarterly review frameworks.

 Why choose Ckredence:

If you want a single platform to simplify PMS selection, fee clarity, and local Chennai relevance, Ckredence Wealth is a dependable choice.

2. Unifi Capital Chennai-Headquartered PMS

Unifi Capital is one of the most recognised PMS firms headquartered in Chennai, with a presence since 2001. It is known for niche equity strategies focusing on mid-caps, special situations, and theme-based investments.

Key Highlights:

• SEBI-registered PMS (Reg No: INP000000613).

• Offers multiple strategies like Green PMS (sustainable businesses) and Blend PMS (growth + value mix).

• Caters to long-term investors who can withstand equity volatility.

• Provides detailed quarterly reports with TWRR and sectoral breakdowns.

Why choose Unifi:

Good for investors looking for theme-based portfolios and strong research depth in mid-cap and emerging opportunities.

3. ITUS Capital Advisors

ITUS Capital, based in R.A. Puram, Chennai, is another SEBI-registered PMS (Reg No: INP000006341). It focuses on concentrated portfolios with 15–20 carefully chosen stocks.

Key Highlights:

• Investment philosophy built on quality and growth companies with strong balance sheets.

• Transparent reporting with regular investor communication.

• Offers bespoke equity strategies aligned with long-term wealth creation.

• Particularly appeals to HNIs who want focused bets rather than broad diversification.

Why choose ITUS:

Best suited for investors who want concentration in select businesses and are comfortable with higher conviction positions.

4. ithought Financial Consulting

ithought, founded in Chennai, operates as both a Registered Investment Adviser (RIA) and a PMS provider. They blend financial planning with portfolio management.

Key Highlights:

• SEBI-registered PMS with long-only equity strategies.

• Known for consistent communication and investor education through reports, webinars, and blogs.

• Strong focus on long-term compounding and downside protection.

• Offers a mix of PMS and advisory services, making it suitable for investors who want planning and execution.

Why choose ithought:

Excellent for investors who, in addition to PMS, value consistent communication, openness, and financial planning.

5. Other SEBI-Registered PMS Options Available to Chennai Investors

Though headquartered outside Chennai, many national PMS providers cater to Chennai HNIs via offices or digital channels. These include:

Motilal Oswal PMS has due renown and growth strategies and a large nationwide client base.

• ASK Investment Managers: Focuses on quality large-cap and mid-cap strategies, with a strong 20+ year track record.

• Marcellus Investment Managers: Popular for concentrated portfolios in clean, consistent compounders.

• ICICI Prudential PMS: Bank-backed PMS, offering a mix of equity and hybrid approaches.

PMS vs Mutual Funds vs AIFs: What Fits Whom?

PMS keeps securities in your name and allows concentrated bets as per approach. Mutual funds are pooled with strict scheme rules and lower ticket sizes. AIFs vary by category and may have fund‑level taxation or complex structures.

Liquidity and costs

PMS lets you withdraw subject to agreement terms; no lock‑in, though exit loads may apply for early withdrawals. Fees are higher than direct mutual fund plans but can fit investors seeking custom portfolios.

Who tends to choose what

• PMS: HNIs needing ₹50 lakh+ tickets, seeking style clarity and manager access.

• Mutual funds: All investors, SIP‑friendly, strong for core allocation.

• AIFs: Sophisticated investors exploring alternatives and willing to accept longer locks. 

Step‑by‑Step: Onboarding a PMS in Chennai

Follow these steps in order. Keep a simple notes file as you go.

Step 1: Set your Goals and Risk: Write your return goal, the maximum loss you can accept, and the time frame. Decide the equity vs debt split.

Step 2: Pick the PMS Model: Choose Discretionary (manager decides), Non‑discretionary (you approve), or Advisory (advice only). Pick what fits your time and control needs.

Step 3: Shortlist 2–3 PMS Providers: Focus on SEBI‑registered firms with clear strategies. Save their disclosure documents and investor charters.

Step 4: Verify Registration and Documents: Check the SEBI registration number on the regulator’s site. Confirm the latest disclosure file and fee annexures.

Step 5: Do a Strategy Fit Call: Ask about universe, benchmark, capacity limits, position sizing, and sell rules. Note past drawdowns and rolling returns, not just CAGR.

Step 6: Get a Written fee Illustration: Ask for management fee, performance fee, hurdle, and high‑water mark math on your ticket size. Confirm all third‑party charges.

Step 7: Complete KYC and Profiling:  Provide PAN, Aadhaar, address proof, bank proof, and photos. Fill out the risk profile and FATCA/CRS forms.

Step 8: Set up Demat, Broker, and Portal Access: Confirm custodian and broker codes, online login, and statement format. Turn on email/SMS trade alerts.

Step 9: Sign Agreements and Limits: Sign the PMS agreement, fee annexures, and a limited POA for trade execution. Record broking and associate‑party caps.

Step 10: Fund the Account: Transfer funds from the mapped bank account. Or move approved shares in‑kind; record purchase cost and dates.

Step 11: Deployment Starts: The manager builds positions, often in tranches. You receive contract notes and a short rationale for large trades.

Step 12: Review Initial Holdings: Check sector weights, top positions, and cash levels against the stated approach. Ask about any off‑theme names.

Step 13: Track Performance the Right Way: Use XIRR for your account and compare it to the strategy’s TWRR. Review monthly statements and quarterly reports.

Step 14: Plan a Quarterly Check‑in: Discuss attribution, changes, risk metrics, and any style drift. Keep questions and answers in your notes file.

Step 15: Top‑ups, Switches, and Withdrawals: Confirm the ₹50 lakh rule for fresh money. Ask about exit loads, tax impact, and timelines before moving cash.

Step 16: Keep Tax records Ready: Save capital gains reports, P&L, fee invoices, and contract notes. Share them with your CA at filing time.

Factors to Consider When Choosing a PMS Provider in Chennai

You may have seen the competitor page list factors like track record, fees, and reporting. It is a good start, but it misses SEBI‑specific checks and 2025 tax updates that matter for outcomes.

What to add to your checklist

• Confirm ₹50 lakh minimum and top‑up rules in writing.

• Check that marketing performance equals what’s filed with SEBI.

• Ask for TWRR vs benchmark and client‑level XIRR.

• Validate associate charge caps and high‑water mark in the fee sheet.

• Map the strategy’s sector bias to Chennai’s listed universe.

Close by speaking to two or three managers before you decide. Style fit matters more than a one‑year number.

Why Choose Ckredence Wealth?

Many HNIs want clarity on rules, costs, and fit before writing a ₹50 lakh cheque. We solve this with a repeatable three‑part approach that stays data‑first and document‑heavy.

• Only SEBI‑registered strategies and verified documents

• Apples‑to‑apples scorecards using TWRR, XIRR, drawdowns, and cost sheets

• Local lens for Chennai: sector maps, promoter quality checks, and liquidity screens

• NRI‑ready onboarding with bank and PIS coordination where needed

We help you compare like for like, avoid fee surprises, and stay aligned to capital‑preservation rules you can read and track.

Conclusion 

Portfolio Management Services in Chennai are growing as more investors seek professional equity management with SEBI oversight. From sector-focused local firms like Unifi and ITUS to research-driven houses like ithought, the choices are many. But for investors, the challenge is not just picking a PMS it’s picking the right PMS that matches your goals, risk tolerance, and fee comfort.

This is where Ckredence Wealth stands apart. By working only with verified SEBI-registered PMS providers, offering clear comparisons, and bringing a Chennai-focused lens, Ckredence simplifies what is otherwise a complex decision. You get fee transparency, performance clarity, and expert guidance all in one place.

FAQs

Q1. What is the minimum investment for portfolio management services in Chennai?

PMS requires a first investment of ₹50 lakh under SEBI rules. Top‑ups must also meet the ₹50 lakh threshold.

Q2. How are PMS fees structured and protected for investors?

Managers use management and performance fees with a high‑water mark. Associate charges have 20% caps per service annually.

Q3. How are PMS equity gains taxed in 2025 for Chennai investors?

Listed‑equity gains face 12.5% LTCG above ₹1.25 lakh yearly. STCG is 20%, plus surcharge and cess.

Q4. Which SEBI‑registered PMS firms have a Chennai address today?

Examples include Unifi Capital and ITUS Capital Advisors. ithought also runs PMS with Chennai operations.