InvestorQ : What is a PMS? How does it differ from mutual funds?
Rohan Bhadani made post

What is a PMS? How does it differ from mutual funds?

Rishita Das answered.
5 years ago

Portfolio Management Service or PMS is a customised fund management services offered to High-Net-worth customers or wealthy customers. Mutual Funds and PMS both manages investors corpus to earn a good return, however, both are different.

The basic difference between the two is that the PMS is offered to wealthy customers who hold amount more than Rs. 25 lakhs. Yes! so it is a customised service only to fulfill the investment objective of the customer.

Management Fees also differ from Mutual Funds. Generally, it ranges from 1% to 3%, depending upon the provider of PMS. Entry load also is charged around 2% to 3 % depending upon the provider. There are also exit load, Profit Sharing/Performance Fee,

Starting a Mutual Fund is much easier compared to PMS as PMS required a lot of paperwork.

In Mutual Fund, every single data is available on daily basis and disclosed to the public so anyone can track, even the person is not invested in that specific Mutual Fund can track easily. However, in the case of PMS, details are only disclosed to the customer and not to the public in general. As a result, there can not be any comparison between the two PMS provider.