Discretionary vs Non-Discretionary PMS – Which One Fits You?

Introduction
When investing in a PMS, HNIs must choose between discretionary and non-discretionary portfolios. Understanding the difference ensures better alignment with expectations.

Discretionary PMS

• Fund manager makes all decisions.
• Suitable for investors who trust the manager’s expertise.

Non-Discretionary PMS

• Manager suggests, but investor approves transactions.
• Suitable for investors who want control.

Advisory PMS

• Manager only advises, investor executes.

Key Takeaway

• Discretionary → hands-off, convenience.
• Non-discretionary → involvement, control.
• Choice depends on investor’s comfort with delegation.

Disclaimer
This blog is for educational purposes only and does not constitute investment advice. Past performance may or may not be sustained in the future. Investments in AIFs and PMS are subject to market risks. Please consult your SEBI-registered investment advisor before investing.