About PMS

Registered Entity: Centricity Portfolio Managers Private Limited

Registered Address :  405 A, Tower B, Global Business Park, DLF Qe, Haryana 122002, India

SEBI Registration Number: INP00010007

Registration Category: Portfolio Manager (PMS)

What is Portfolio Management Services (PMS)

PMS is a professional portfolio management service in which skilled, qualified & experienced fund managers & professionals manage equity or debt portfolios to achieve specific objectives. As per SEBI regulations, the minimum investment ticket for investing in PMS is Rs. 50 lakhs.

PMS is typically available to those who can meet certain minimum investment criteria set by the PMS provider. This makes it suitable for high-net-worth investment solutions and HNI investment services.

Why PMS?

The following are some advantages of PMS investment:

● Personalisation and customized investment portfolio

● Active portfolio management

● Potentially higher risk-adjusted returns

● Opportunistic portfolio rebalancing

Types of PMS

Investment solutions in PMS can be provided in three ways:

- Discretionary PMS

Under these services, the choice, as well as the timings of the investment decisions, rests solely with the portfolio manager. This is known as discretionary PMS.

- Non-Discretionary PMS

The portfolio manager will execute trades based on the client’s investment decision under these services. This is referred to as non-discretionary PMS.

- Advisory PMS

Under these services, the portfolio manager only suggests investment ideas. The choice, as well as the execution of the investment decisions, rests solely with the investor.

How PMS Differs from Mutual Funds

While both involve professional portfolio management, PMS offers a customized investment portfolio tailored to individual preferences.

● PMS focuses on generating alpha vs benchmarks

● Portfolios are more concentrated

● Can invest in early stock ideas

● Securities are held in the investor’s demat account

Minimum Investment & Structure

● Minimum investment: ₹50 lakhs

● Additional investments: ₹10 lakhs+

● Fees include management fee + performance fee

● Hurdle rate applies

This makes PMS suitable for high-net-worth investment solutions.

Fees & Charges

● Annual management fee (0.25%–2.5%)

● Performance-based fee over hurdle rate

● Fixed fee or profit-sharing models

Taxation

● Tax treated as direct equity investments

● Capital gains applied per transaction

● Long-term: 12.5%

● Short-term: 20% + cess + surcharge

Key Considerations

● PMS portfolios are concentrated

● Market movements have a higher impact

● Suitable for investors with a higher risk appetite

● Requires active monitoring

Role of a Portfolio Manager

An investment portfolio advisor or portfolio manager is responsible for:

● Asset allocation

● Security selection

● Portfolio monitoring

● Performance optimization