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Ultimate Guide: Portfolio Management Services in India for HNIs (2025 Edition)

Our team of professionals have the expertise and experience for constant monitoring and has a tailored approach to maximize compounding and wealth creation for our investors.

Introduction

High-net-worth individuals (HNIs) in India today prefer to have their wealth professionally managed. With the market getting more complex, opportunities shifting rapidly, and the need for smart diversification, PMS (Portfolio Management Services) has become one of the fastest-growing investment solutions. The purpose of this guide is to provide a complete breakdown of Portfolio Management Services India for HNIs covering the definition, SEBI regulations, types of PMS, strategies, performance expectations, fees, risks, and a complete checklist for choosing the right PMS. Whether you’re an HNI or targeting HNI clients, this guide will work as a complete master resource. Sowilo Investment Managers LLP is a SEBI Registered Portfolio Management Company.

What are Portfolio Management Services (PMS)?

Portfolio Management Services is a regulated investment service where SEBI-registered portfolio managers professionally manage an individual’s funds and securities. PMS is specifically designed for high-net-worth individuals who want:

Why PMS is Popular Among Indian HNIs

As of 2025, India’s PMS industry has crossed ₹7 lakh crore in AUM. The rapid growth is driven by four key reasons:

Higher Return Potential

HNIs prefer PMS because it focuses on:

Common PMS strategies have major exposure to mid-cap, small-cap, and multi-cap portfolios historically delivering 18–25% CAGR.

Curated Portfolio (Unlike Mutual Funds)

Mutual funds operate with a pooled fund model, applying the same strategy to all investors. However, PMS offers a fully curated portfolio based on:

HNIs prefer this customization because it aligns directly with their wealth goals.

Direct Stock Ownership

This gives HNIs

SEBI-Regulated, High-Quality Framework

PMS providers in India follow strict SEBI regulations ensuring
HNIs prefer PMS because it combines performance with strong compliance.

Types of PMS in India

PMS is divided into three main categories

1. Discretionary PMS

The portfolio manager independently takes all buy/sell decisions

2. Non-Discretionary PMS

Decisions are taken with client approval. Ideal for HNIs who want a higher degree of control

3. Advisory PMS

The manager provides investment advice, but execution is done by the client. Suitable for HNIs who already manage their Demat actively.

Minimum Investment & Eligibility (Important for HNIs)

As per SEBI regulations:

Most HNIs prefer starting with ₹1 crore to ₹10 crore.

Each provider has unique investment strategies some focused on small-cap growth, others on low-risk diversified compounding

How Do PMS Generate Higher Returns?

The biggest attraction of PMS is its ability to generate higher long-term returns.
1. Diversified Portfolio
2. Active Portfolio Rotation
Dynamic rebalancing based on market cycles
3. Sector Leadership Focus
Focus on leading companies within high-growth sectors.
4. Deep Research-Based Investing

This combination helps in consistent alpha generation.

PMS vs Mutual Funds for HNIs

Feature

PMS

Mutual Funds

Minimum Investment

₹50 lakh

₹500

Ownership

Direct Stocks

Units

Return Potential

Higher

Moderate

Risk

Higher

Lower

Customization

Moderate

Zero

Fees

Higher

Lower

HNIs prefer PMS because of performance, transparency, and personalization.

Risks in PMS (HNIs Should Know)

PMS also comes with certain risks:
HNIs should ideally stay invested for 3–5 years for best results.

Checklist: How HNIs Should Choose PMS in India

1. SEBI Registration Check: Mandatory compliance check.
2. Track Record: Prefer PMS with multi-cycle performance.
3. Fees & Charges: Understand performance fee structure clearly.
4. Portfolio Strategy: Check alignment with your risk and goals.
5. Risk Management Approach

  1. Maximum drawdown
  2. Diversification
  3. Stop-loss discipline

6. Reporting Transparency: Monthly/quarterly insights should be mandatory.

PMS Returns in India for HNIs

Historical PMS returns (approx trends):

  1. Large-cap PMS: 12–16% CAGR
  2. Multi-cap PMS: 16–22% CAGR
  3. Mid-cap PMS: 18–25% CAGR
  4. Small-cap PMS: 20–30% CAGR

Returns vary with market cycles but long-term PMS performance is strong.

Conclusion

For today’s HNIs, Portfolio Management Services India for HNIs has become a powerful wealth creation vehicle. If you maintain discipline, accept volatility, and invest long-term, PMS can significantly boost your net worth and overall wealth growth. The 2025 PMS trends clearly show that personalization, concentrated portfolios, and deep research-driven investing are shaping the future of high-return wealth management.

Thanks & Regard

Sowilo Investment Managers LLP
Email: info@sowilo.co.in
Address: 57, Ground Floor, Virwani Industrial Estate, Goregaon East, Mumbai, Maha – 400063

DISCLAIMER: Any information contained in this material represents Sowilo’s views and research analysis and shall not be deemed to
constitute an advice, an offer to sell purchase or as an invitation or solicitation to do for security of any entity and further Sowilo Investment
Managers LLP and its employees/directors shall not be liable for any loss, damage, liability whatsoever for any direct or indirect loss arising
from the use of this information. Sowilo Investment Managers LLP – SEBI Registered Portfolio Manager (INPO00008127)