Portfolio Management Services (PMS) are becoming more popular in India. As of Q1 FY2025, the total assets under management (AUM) for Portfolio Management Services (PMS) in India have reached approximately ₹7.08 lakh crore (excluding EPFO contributions and advisory assets)(source: Economic Times).

HNIs and family offices are shifting towards PMS due to better control, personalization, and returns. But many investors still ask, what kind of PMS should I choose? Should it be discretionary or advisory? What type matches my risk profile?

• Do you know the exact difference between active and passive PMS?

• Are you clear about what control you will have under each PMS structure?

• Have you evaluated PMS based on your investment goals and timeline?

This blog offers a clear, comparative, and strategy-focused overview of all types of portfolio management services in India, designed to help investors, advisors, and wealth professionals choose better.

Key Takeaways

• Understand the three core PMS types: Discretionary, Non-Discretionary, Advisory

• Explore PMS strategies by investment style, risk, and asset allocation

• Learn which PMS suits different investor types and capital goals

• Compare PMS examples like equity, debt, hybrid, and multi-asset

• Get insights on regulatory controls and SEBI compliance

What Are Portfolio Management Services (PMS)?

Portfolio Management Services (PMS) is a service where professional portfolio managers handle your investments. These experts invest your money in a mix of assets like stocks, bonds, and other financial instruments to help you earn better returns. Unlike regular mutual funds, PMS gives you a high level of personalization and control.

SEBI mandates a minimum investment of ₹50 lakh to start with PMS in India. The main benefit is that you own the securities directly in your name, unlike mutual funds where units are held collectively.

PMS is mostly chosen by high-net-worth individuals (HNIs) who want focused strategies, direct communication with managers, and portfolios that match their personal goals and risk levels.

Types of Portfolio Management Services Based on Control

Portfolio Management Services in India can be classified based on how much control you have over the investment decisions. This helps investors decide how involved they want to be in managing their money. There are three main types under this category: Discretionary, Non-Discretionary, and Advisory PMS.

Discretionary PMS

In Discretionary PMS, you hand over the decision-making to the portfolio manager. Once you agree on the broad strategy and goals, the manager takes full responsibility for stock picking, allocation, and exit decisions. This means you don’t have to approve every transaction.

Key Features of Discretionary PMS:

• No ongoing consent is needed for transactions

• Portfolio stays in your name (held in your demat account)

• Manager acts instantly on market changes

Ideal For:

• Passive investors with limited time

• HNIs looking for fully managed wealth solutions

Things to Consider:

• Manager’s skill impacts returns

• No say in stock-level decisions once strategy is agreed

Discretionary PMS is the most opted PMS model in India, especially among retired professionals and NRIs.

Non-Discretionary PMS

In Non-Discretionary PMS, the manager will give you recommendations, but you have to approve each transaction. You stay more involved in the decision-making process, and the manager acts only after you give permission.

Key Features of Non-Discretionary PMS:

• You stay involved in portfolio execution

• Manager sends recommendations and market insights

• Execution requires your approval each time

Ideal For:

• Informed investors who want control

• Family offices that operate with internal reviews

Things to Consider:

• Delay in decisions may lead to missed opportunities

• Higher administrative communication load

This structure suits investors who want oversight but still benefit from expert research.

Advisory PMS

This is a consultative model. In Advisory PMS, the manager only provides expert recommendations. You are responsible for making all transactions and managing execution based on the advice given.

Key Features of Advisory PMS:

• Maximum control; manager doesn’t operate your account

• Best suited for experienced investors or financial firms

• SEBI-registered PMS advisor still handles strategy formulation

Ideal For:

• HNIs with internal research teams

• Corporate treasuries and ultra-rich families

Things to Consider:

• All trades, compliance, and reconciliations are on you

• No execution support, so responsibility is higher

This type works for those who want expert advice but prefer their own execution system.

Types of PMS Based on Investment Strategy

Different PMS products use different approaches to investing. This classification helps investors understand how often the portfolio changes and how aggressively the fund tries to beat the market. The three main strategies are Active, Passive, and Hybrid.

Active PMS

Active PMS aims to generate higher returns by frequently changing the portfolio. The manager uses research, market trends, and timing strategies to invest in specific sectors or stocks that are expected to perform better than others. This approach requires constant monitoring.

Characteristics of Active PMS:

• Focused on alpha generation (returns above market)

• Involves timing, sector shifts, and dynamic rebalancing

• Common in large-cap and multicap PMS products

Risk Level:

• High, due to concentration and tactical bets

Works Best For:

• Aggressive investors with long-term goals

Passive PMS

In Passive PMS, the portfolio mirrors a stock index or follows a fixed model. The focus is on keeping things simple and low-cost. There are fewer changes to the portfolio and no attempt to outperform the market.

Characteristics of Passive PMS:

• Follows market indices (Nifty, Sensex, etc.)

• Low churn, fewer trades

• Predictable performance based on benchmarks

Risk Level:

• Moderate to low

Works Best For:

• Conservative HNIs

• Institutional accounts seeking stability

Hybrid PMS

Hybrid PMS combines equity and debt in one portfolio. This strategy helps reduce risk while still allowing for decent returns. The fund manager adjusts the ratio based on market conditions.

Characteristics of Hybrid PMS:

• Usually has 60:40 or 70:30 equity-debt ratio

• Adjusted periodically based on market volatility

• Good for medium-risk appetite clients

Risk Level:

• Balanced

Works Best For:

• First-time PMS investors

• Retirement corpus builders

  
  

Types of PMS Based on Asset Classes

Asset-based classification helps investors understand what kind of instruments their money will be invested in. It also helps in building portfolios based on risk level and financial goals.

Equity PMS

This PMS invests only in stocks. The focus is on long-term growth and capital appreciation. Managers often choose mid-cap, small-cap, or large-cap stocks based on their expertise.

Strategy Types Under Equity PMS:

• Multicap

• Large & Midcap Focused

• Thematic (e.g., PSU, Pharma, Infra)

• Sector Rotation

Ideal For:

• HNIs seeking long-term capital growth

• Investors with 5+ year time horizon

Debt PMS

This PMS focuses on fixed-income securities like government bonds, debentures, or corporate bonds. It is a safer option with stable income but lower returns compared to equity.

Benefits:

• Lower volatility

• Predictable returns

• Regular income potential

Suitable For :

• Ultra-safe investors

• Retirees seeking fixed cash flows

Multi-Asset PMS

This PMS includes a mix of equity, debt, gold, real estate investment trusts (REITs), and sometimes international assets. The idea is to reduce risk through diversification.

Portfolio Diversity :

• Designed to reduce portfolio risk

• Allows rebalancing between asset classes

Best Suited For :

• Large family offices

• NRIs needing currency hedging

How to Choose the Right Type of PMS?

Selecting the right PMS depends on your financial goals, risk capacity, and how involved you want to be in decision-making. Each type of PMS offers something unique, and knowing your priorities will help you choose wisely.

Key Considerations : 

• Control: Do you want to decide trades or prefer full delegation?

• Time: Can you actively participate, or need full support?

• Risk: Are you growth-focused or conservative?

• Tax Structure: Some PMS are more tax-efficient than others

• Track Record: Past alpha, volatility, and benchmark comparisons

Always ask for a PMS factsheet, review mandates, and consult a licensed wealth manager before committing.

Why Should You Choose Ckredence Wealth?

PMS is not about chasing the best returns. It’s about building the right portfolio—structured for your goals, risk, and financial story.

At Ckredence Wealth, every PMS solution is designed to reflect that principle.

What We Offer

True Personalization
We don’t bundle PMS in standard templates. Each portfolio starts with your inputs—risk profile, wealth goals, return targets.

Multi-Layered Diversification
We use a combination of equity PMS, multi-asset strategies, and low-volatility frameworks depending on your needs.

Dedicated Advisory Desk
Every client works with a dedicated advisor who handles onboarding, review calls, and strategy updates.

PMS for Every Profile
Whether you're a growth-first NRI or a risk-averse retiree, we create a custom PMS framework for you.

Transparent Governance
Clear reporting, zero hidden fees, and quarterly audit trails keep your money visible and protected.

Edge Through Research
Our advisory desk leverages proprietary PMS scoring frameworks across Indian managers and categories.

Your portfolio is a responsibility, not a product. Choose Ckredence Wealth to shape it right.

Conclusion

Understanding the types of portfolio management services in India is key to building a profitable, stable, and personalized investment plan.

• Discretionary PMS suits hands-off investors

• Non-discretionary PMS fits involved decision-makers

• Advisory PMS works for self-directed investors

• Choose PMS based on control, risk, assets, and time

• Ckredence Wealth offers personalized PMS strategies with high-quality execution support

Pick wisely. Your financial goals deserve more than guesswork.

FAQs

1. What are the different types of portfolio management services in India?
The types include Discretionary, Non-Discretionary, and Advisory PMS based on control structure.

2. What is the difference between discretionary and non-discretionary PMS?
Discretionary PMS gives full control to the manager; non-discretionary needs client approval for trades.

3. Which type of PMS is best for HNIs in India?
Discretionary or Hybrid PMS works well for HNIs who prefer active wealth management.

4. How do I choose between equity PMS and multi-assest PMS?
Choose equity PMS for growth focus and multi-assest for risk-adjusted diversification.