Best Portfolio Management Services in India 2025

“If you don’t find a way to make money while you sleep, you will work until you die.”

These words of the legend, all-time great Warren Buffett, hold so much significance regarding sound financial planning. This is the easiest way you can understand the importance of Investing.

These days, people are exploring newer investment avenues more than ever. But at the same time, they find it hard to keep track of their investments. This is because much time is required to be spent identifying the most suitable investment options to achieve financial objectives. Plus, this needs a lot of financial knowledge as most people often end up making wrong investments. But Portfolio Management Services (PMS) turn out to be a saviour in this scenario. Let’s find out more about portfolio management services in India and the advantages that come with this post.

What is a portfolio?

In simple words, a portfolio is a collective term used for all the investments you make. It refers to the combination of investments of different asset classes, such as:

• Equity
• Derivatives
• Short-term debt and commodities

For example, your portfolio may comprise a combination of some equity investment, an investment in short-term debt, gold, and even cash. Every person has a unique portfolio suitable to their diverse needs and financial resources. When it comes to the management of a portfolio, you can either do it on your own or hire an expert to do the same. If you choose the latter option, you will have to go with Portfolio Management Services (PMS).

What are portfolio management services?

As some of you might have understood by now, portfolio management services are simply the services where an expert manages the investment portfolio of a person. The expert decides where to invest how much of your money so that your objective for investing is achieved.

Types of portfolio management services

PMS can be classified into categories based on how they are managed (active and passive) and the participation of investors in decision-making (discretionary and non-discretionary). There are two types of portfolio management services based on performance and the risk involved, namely:

1. Active portfolio management

Active portfolio management aims at the ‘active’ trading of securities, aiming at those listed on the Nifty. There is actively buying and selling depending on the dynamic Market conditions. This type of PMS is fit for those who are ready to assume higher risks on the possibility of getting higher returns. It outperforms the trend of the market to earn the highest possible returns.

2. Passive portfolio management

This type of portfolio management is in contrast to active portfolio management. It tends to replicate the performance of an index like NIFTY. The portfolio does not change frequently, and thus, the transaction costs and risk involved are comparatively lower in this type of investment. Based on the investor’s participation in the investment, PMS can be classified as follows:

3. Discretionary portfolio management

In this type of PMS, investment decisions are taken at the portfolio manager's discretion. The manager has complete control over where to invest and needs not to seek permission from the investor at all times. This is a great advantage for people without investment knowledge and time to look into the pros and cons of each decision. This is the most preferred type of PMS.

4. Non-discretionary portfolio management

This is the exact opposite of discretionary portfolio management. Here, the manager can only invest in a particular avenue after due discussion and permission from the investor. It is generally a less preferred PMS.

Why should you invest in portfolio management services?

There are too many reasons that will compel you to invest in PMS, making you understand that it is probably one of the best options for investment available out there. Here are a few of them:

1. Professional expertise

It is good to have financial knowledge, but when it comes to investing to achieve your financial objectives while safeguarding financial resources and minimising the risk, it is better to have an expert guide you through it all. The essence of portfolio management services is having a skilled portfolio manager assist you at every step.

2. Risk diversification

Having a portfolio manager will mean effective management of all investments to minimise risk. Also, the expert will invest in varied investment avenues, leading to risk diversification. The portfolio manager will make a combination of investments in your portfolio so that even if one investment has a very high risk, another will balance it out. This reduces the Volatility of an investment, and the risk of losing all your money is almost negligible.

3. Higher returns

A planned investment considering all the risk-return calculations by an experienced person, will guarantee higher returns than a common man’s investment. You cannot underestimate the knowledge and skills of the person whose profession is investing. Investing according to market conditions, investing in the most suitable asset classes, and making timely decisions will come down to higher returns.

4. Achievement of objectives

No matter how much you try to channelise your funds into different asset classes according to your suitability, you will unintentionally leave out one or more aspects. There is a greater possibility that you can achieve your investment goals partially or wholly. But the portfolio manager will design your portfolio in such a manner that you will be able to get the desired returns.

5. Freedom from hassle

If you manage your portfolio independently, you will have to check the prices of various securities you invested in regularly, without Fail to avoid losses. Whether you do it willingly or unwillingly, you will be solely responsible for the gain and loss of your investment. But when you invest in PMS, you are free from these hassles. Just leave it on the expert and chill.

What is the difference between portfolio management services and mutual funds?

Portfolio management services and Mutual Funds sound quite similar from a broader perspective. But when you get into the details, there are some stark differences between the two.

1. Minimum investment limit

There is no statutory minimum requirement for the amount invested in mutual funds. You can invest a sum as small as Rs.100. In PMS, the minimum investment amount has recently been raised from Rs.25 lakhs to Rs.50 lakhs.

2. Personalisation

Investing in PMS allows you to personalise your portfolio in the best possible manner suited to your needs. You can invest in as many different asset classes as you want. However, in mutual funds, this customisation is not possible.

3. Flexibility

There is greater flexibility in PMS regarding investing in and out of different asset classes. The portfolio is designed flexibly to meet the needs of the investor. Whereas most mutual funds invest in equity only or even in different avenues, there is a greater proportion of equity. Thus, they offer less flexibility when it comes to portfolio diversification.

4. Ownership

The assets or investments are owned directly by the investor in the case of PMS, whereas all the securities and other investments are owned in the name of the fund in the case of mutual funds.

5. Discretion of the investor

As the company manages funds, investors may not know where their money is invested. It is the exact opposite case in PMS. The investor is well aware of where their money is being invested. There is an even greater authority in the case of discretionary PMS.

Top 5 Portfolio Management Services in India

Here are the best PMS in India in 2025:

1. Motilal Oswal

Based in Mumbai, Maharashtra, Motilal Oswal came into existence in 1987. Ramdeo Agarwal and Motilal Oswal were the founders. They offer their clients two types of PMS services: discretionary and non-discretionary. Motilal Oswal PMS charges a fixed fee of 2-2.25% per annum.

2. ASK Investment Managers

Established in 1983 by Asit Koticha, ASK has a proven track record and is one of the best PMS in India. They charge a fee of 2.5% per annum. The company is based in Mumbai, Maharashtra, and is listed on the stock exchange.

3. Alchemy PMS

Ace investor Rakesh Jhujhunwala founded the company Alchemy Pvt Ltd along with Lashit Sanghvi in 1999. It has its place in the country's top-performing companies on the stock exchange. The Alchemy PMS has grown tremendously in the past few years. They charge a 2-2.5% fixed fee per annum.

4. Kotak PMS

Be it Kotak Bank or Kotak Securities, it has been doing great in all avenues. Whether they Call it the brand name or the superior services they offer, Kotak has been a leading PMS option among investors. They charge an annual fixed fee of 2.5%.

5. ICICI Prudential

They offer all four types of PMS: active, passive, discretionary, and non-discretionary. They have been the big players in the market for the past ten years. ICICI Prudential design extremely personalised and customer-specific portfolios depending on their respective needs. They charge a 1-3% fixed annual fee.

Conclusion

A prudent investor will explore all the investment avenues available. Portfolio management services are another lucrative option that offers expertise and guarantees the best results. This is a step further in investment and financial planning, making people realise their importance. If a person identifies their financial needs, they are good to go and get high PMS investment returns.