PMS vs Mutual Funds – A Case Study

Introduction
Many investors ask: “Why not mutual funds instead of PMS?” Both are regulated, but PMS differs in structure, transparency, and customization.

Case Study Example

• Mutual Fund Investor: Buys units in pooled fund with 10,000+ other investors. Standardized strategy.
• PMS Investor: ₹50 lakh+ portfolio managed individually, stocks held in personal demat.

Key Differences

• Customization: PMS = tailor-made; MF = standardized.
• Transparency: PMS = direct holdings; MF = pooled.
• Minimum Investment: PMS = ₹50 lakh; MF = ₹500/₹1,000 SIP.
• Liquidity: Both liquid, PMS depends on portfolio strategy.

Key Takeaway

• PMS = for HNIs who want control, transparency, customization.
• MF = for retail investors with smaller ticket sizes.

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.