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PMS — Portfolio Management Services

Year-by-year management fee drag + high-water-mark performance share.

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Next Up Calculators

CAGR

Compound annual growth rate of any investment.

SWP

Retirement income simulation.

DRIP

Stock appreciation + dividend compounding.

ETF

Tracking-error & expense-ratio adjusted.

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Verdict

Net Corpus after all fees

₹1.94 Cr

Total fee drag vs gross: ₹67.84 L

Invested

₹50 L

Gross Corpus

₹2.62 Cr

Net Corpus

₹1.94 Cr

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Next Up Calculators

CAGR

Compound annual growth rate of any investment.

SWP

Retirement income simulation.

DRIP

Stock appreciation + dividend compounding.

ETF

Tracking-error & expense-ratio adjusted.

Back to Home Dashboard

PMS — Portfolio Management Services

SEBI-regulated PMS schemes (minimum investment ₹50 lakh) charge a fixed management fee plus a performance share over a hurdle rate, ratcheted by a high-water-mark (HWM) so the manager cannot double-charge for recovering past losses.

This calculator compounds gross returns, deducts the management fee on end-of-year balance, and charges performance share only on excess above HWM × (1 + hurdle). Reality is more granular (quarterly fee, dilution, exit load) but this captures the dominant fee drag.

Frequently Asked Questions

What is the minimum for PMS in India?

SEBI mandates a minimum investment of ₹50 lakh per investor across all PMS strategies of a manager. Securities are held in the investor's own demat account, giving full transparency on each holding.

How are PMS fees structured?

Two common models: (a) Fixed fee — 2-2.5% annually, no performance component, or (b) Performance fee — 1-1.5% fixed + 15-20% of returns above a hurdle (usually 8-10%) with a high-water mark. The high-water mark prevents paying performance fee on recovered losses.

Is PMS better than mutual funds?

PMS offers concentrated portfolios (15-30 stocks), customisation and transparency, but at materially higher cost and tax inefficiency (every rebalance triggers capital gains in your name). For most investors below ₹2 crore, a mix of large-cap and mid-cap mutual funds outperforms PMS on a post-fee, post-tax basis.

How are PMS returns taxed?

Each transaction in your demat triggers individual capital gains — STCG at 20% or LTCG at 12.5% (above ₹1.25 lakh). PMS managers do not provide consolidated capital-gains statements like AMCs do — reconciling for ITR is materially more complex.

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