Question 1

What is PMS and how is it different from mutual funds?

Accepted Answer

Portfolio Management Services (PMS) offer personalized, actively managed portfolios with direct stock ownership, unlike mutual funds where you own units of a pooled fund. PMS provides customization, transparency, and dedicated fund manager attention, ideal for HNI investors with ₹50 lakh+ to invest.

Question 2

What is the minimum investment for PMS in India?

Accepted Answer

SEBI mandates a minimum of ₹50 lakh for PMS investment. However, accredited investors under the SEBI Accredited Investor framework can invest in PMS starting from as low as ₹1 lakh through Specialized Investment Funds (SIFs).

Question 3

How to choose the best PMS in India?

Accepted Answer

Compare PMS funds based on: (1) Track record and consistency of returns over 3-5 years, (2) Risk-adjusted returns (Sharpe ratio), (3) Fund manager experience, (4) Fee structure (fixed + performance fee), (5) Investment philosophy alignment with your goals. Ionic Wealth helps you compare and select from top SEBI-registered PMS providers.

Question 4

What are the tax implications of PMS investments?

Accepted Answer

PMS investments are taxed at the individual stock level since you hold stocks directly. Equity LTCG (over 1 year) above ₹1.25 lakh is taxed at 12.5%, while STCG is taxed at 20%. The key advantage is the ability to do tax-loss harvesting at the individual stock level.

Question 5

Is Ionic Wealth a SEBI registered PMS provider?

Accepted Answer

Yes, Ionic Wealth is SEBI-registered and operates as a wealth management platform by Angel One. We help investors access and compare top PMS providers, facilitate the investment process, and provide ongoing portfolio monitoring and advisory.