Best PMS in India in 2023 – All About PMS Services

Last updated on November 25, 2023

When investing in the stock market independently or considering a substantial investment, you may find yourself seeking guidance to make informed decisions that optimize returns while minimizing risks.

Portfolio Management Service (PMS) is the ideal solution in such situations. In this article, we will delve into the factors to consider when selecting the best PMS in India. A portfolio comprises various asset classes such as stocks, mutual funds, bonds, real estate, and commodities. Reputed and registered intermediaries offer these services, guiding you in making intelligent financial decisions and managing your portfolio for a fee.

What is Portfolio Management Service?

Portfolio Management Service offers investors access to experts who possess market insights and can assist them in making crucial investment decisions. Let’s explore what else they provide:

• Comprehensive Portfolio Management: PMS takes care of all aspects of managing your portfolio.
• Understanding Investor Expectations: PMS providers are aware of your investment return expectations and preferences.
• Market Monitoring and Allocation: They closely monitor the market and allocate your funds according to your needs.
• Wealth-Oriented Decisions: PMS providers make decisions aimed at enhancing your wealth.
• Stock Market Advice: They provide valuable advice on stock market activities.

Characteristics of Portfolio Management Service

PMS service providers in India are regulated by SEBI and handle both debt and equity portfolios. The minimum investment required for PMS, as mandated by SEBI, is INR 50 Lakhs, although some providers may have higher thresholds. Investors can choose from several model portfolios tailored to their financial goals, and if needed, these can be customized accordingly.

Also Read: Brown Label ATM and 5 Other Amazing Types of ATMs You Didn’t Know About

Types of Portfolio Management Services

Portfolio Management Services can be broadly categorized into three groups:

1. Discretionary Portfolio Management Service

In this model, the portfolio manager has the freedom to invest and manage the portfolio on behalf of the investors without their direct involvement. Currently, most service providers offer discretionary PMS.

2. Non-discretionary Portfolio Management Service

This type is advisory in nature, where the portfolio manager recommends suitable investments based on the investor’s objectives and risk tolerance. The final investment decision lies with the investor, while the portfolio manager handles the execution.

3. Advisory Portfolio Management Service

This is akin to an advisory service for high-value portfolios. The portfolio manager provides recommendations, and the investor is responsible for implementing the suggestions.

Top PMS in India – Performance Rankings

The ranking parameter in this list is simply the performance in the last 12 months. Here are 11 selected entries that make it to the list of best PMS services in India based on performance until September 2023.

• Aequitas – India Opportunities Product
• InvestSavvy – Alpha Fund
• Samvitti – PMS Active Alpha Multicap
• Asit C. Mehta – ACE Multicap
• Shepherds Hill – Value Magno
• Invasset – Growth Pro Max
• ithought – VRDDHI
• Green Lantern – Growth Fund
• Maximal – Pathfinder Value Fund
• O3 Securities – Special Situations Portfolio
• Unique – Strategic Fund

#1 Aequitas – India Opportunities Product

Aequitas is focused on finding multibaggers in Small and micro-cap stocks through a deep understanding and judicious use of market cycles. Nevertheless, the mainstay of the fund is value investing and the focus is always on finding undervalued bets. This approach has helped the fund in posting consistent outperformance through a variety of market cycles which is reflected in the CAGR of 29.45% since inception. Quite impressive!

Managed by industry veteran Siddharth Bhaiya, the fund’s multi-bagger approach rests on the three pillars of Growth, Contrarian investing, and Value.

Fund Manager: Mr. Siddharth Bhaiya
AUM: INR 2,473.7 crore
1-year Returns: 82.09%
3-year Returns: 60.15%

#2 InvestSavvy – Alpha Fund

Long-Term Profit

Fund Manager: Mr. Ashish Goel
AUM: INR 23.83 crore
1-year Returns: 73.56%

#3 Samvitti – PMS Active Alpha Multicap

To invest in companies who are market leaders, with strong cash flows who are not leveraged, & also emerging businesses in the mid, small & microcap segment and are run by promoters/management with high corporate.

Fund Manager: Mr. Prabhaker Kudva
AUM: INR 120.92 crore
1-year Returns: 68.95%

#4 Asit C. Mehta – ACE Multicap

Stocks in the total-cap universe have a market capitalization larger than INR 1000 crore and a minimum average daily liquidity of INR 1 crore over the previous three months.

Fund Manager: Mr. Deepak Makwana
AUM: INR 30.96 crore
1-year Returns: 68.53%
3-year Returns: 36.80%

#5 Shepherds Hill – Value Magno

Shepherd’s Hill offers investors in India and around the world a way of achieving superior long-term returns on their savings.

AUM: INR 83.01 crore
1-year Returns: 64.02%
3-year Returns: 33.98%

#6 Invasset – Growth Pro Max

To Generate Consistent Sustainable Wealth for our clients by investing their hard-earned income in a portfolio of Best Performing Equity Assets.

Fund Manager: Mr. Anirudh Garg
AUM: INR 91.75 crore
1-year Returns: 63.33%

#7 ithought – VRDDHI

To invest in emerging businesses in the mid, small & microcap segment. The companies that we invest in have market leadership characteristics, have no/low debt, strong cash flows, and are run by promoters/management who rank high on corporate governance standards.

Fund Manager: Mr. Shyam Sekhar
AUM: INR 262 crore
1-year Returns: 59.72%

#8 Green Lantern – Growth Fund

The fund strategy endeavors to generate superior risk-adjusted returns, in varying market conditions, by investing in mid- and Small Cap companies. Ideal long-term investment (3-5 year Horizon) option for investors where we build a portfolio of companies that are Industry leaders, have the potential to generate healthy ROE and are trading at a high margin of safety.

Fund Manager: Mr.Nilesh Doshi
AUM: INR 200.95 crore
1-Year Returns: 58.70%
3-year Returns: 63.49%

#9 Maximal – Pathfinder Value Fund

The main goal is to build long-term wealth for customers by investing in opportunities that have a very low possibility of permanent capital loss and exceptionally good risk-adjusted return potential.

Fund Manager: Mr. Sarvesh Nand Kishore Gupta
AUM: INR 82.66 crore
1-year Returns: 57.39%

#10 O3 Securities – Special Situations Portfolio

The investment goal is to put money into a firm whose prospects are increasing and which will show in a change in operating metrics but which will not yet be completely represented in the P&L and balance sheet of the company.

AUM: INR 38.89 crore
1-year Returns: 53.38%

#11 Unique – Strategic Fund

Unique PMS believes in preserving and growing clients’ wealth based on a disciplined approach and the following principles

1. Fear permanent loss of capital, not volatility
2. Long-term horizon (min 5 – 7 years)
3. In-house research (identify a good business, invest, monitor, exit).

Invests all of its funds in the same strategy as the rest of its clients, thus ensuring aligned interests.

Fund Manager: Mr. Ketan Gopani
AUM: INR 1,113.75 crore
1-year Returns: 53.21%
3-year Returns: 43.92%

Also Read: Best Growth Mutual Funds in India

Top PMS in India – AUM Rankings

Here are the top PMS services in India based on their Assets Under Management (AUM):

#1 ENAM Asset Management Company (AUM – INR 33,690.60 crore)

Flagship Strategy Details
Investment Approach – ENAM India Equity
Fund Manager – Mr. Rajesh Khona
AUM – INR 21,133 crore
1-year Returns: 23.78%
3-year Returns: 24.70%
5-year Returns: 12.60%

#2 Ask Investment Managers (AUM – INR 27,336.41 crore)

Flagship Strategy Details
Investment Approach – ASK Indian Entrepreneur Portfolio
Fund Manager – Mr. Sumit Jain
AUM – INR 18,051.02 crore
1-year Returns: 4.29%
3-year Returns: 20.10%
5-year Returns: 10.65%

#3 IIFL Asset Management Limited (AUM – INR 21,214.84 crore)

Flagship Strategy Details
Investment Approach – Customized Discretionary Portfolio
AUM – INR 12,039 crore
1-year Returns: 14.59%

#4 Quantum Advisors Pvt Ltd (AUM – INR 18,306.83 crore)

Flagship Strategy Details
Investment Approach – Q India Value Equity Strategy Constrained V
AUM – INR 16,207 crore
1-year Returns: 18.40%

#5 Unifi Capital Private Limited (AUM – INR 16,534.28 crore)

Flagship Strategy Details
Investment Approach – Blended- Rangoli
Fund Manager – Mr. Sarath K Reddy
AUM – INR 11,012 crore
1-year Returns: 17.41%
3-year Returns: 28.83%
5-year Returns: 22.69%

#6 White Oak Capital Management Consultants (AUM – INR 13,702.80 crore)

Flagship Strategy Details
Investment Approach – White Oak India Pioneers Equity Portfolio
Fund Manager – Mr. Prashant Khemka
AUM – INR 7,750 crore
1-year Returns: 9.60%
3-year Returns: 21.10%

#7 Marcellus Investment Managers (AUM – INR 11,159.09 crore)

Flagship Strategy Details
Investment Approach – CCP
Fund Manager – Mr. Saurabh Mukherjea
AUM – INR 6,878 crore
1-year Returns: 5.31%

Top PMS in India – Conclusion

Portfolio Management Service (PMS) can be an excellent way to achieve your investment goals, particularly if you are an HNI. However, retail investors are restricted from equity investments through PMS due to the minimum investment requirement of INR 50 lakhs set by regulators. This is a regulatory requirement that even the best PMS services in India can’t circumvent.

PMS providers must timely notify clients of any disclosures, although such information may not be freely accessible to the general public. While PMS services offer greater flexibility for larger investors and HNIs, they do come with higher fees compared to mutual funds.