How to open a PMS account?

Last Updated: 3 Sep 2025

PMS or Portfolio Management Services are investments where portfolio managers manage the investments. These portfolios may contain stocks, fixed income, debt, cash and other securities. The services offered through PMS are investment solutions directed to a niche clientele that consists of high-net-worth individuals and even entities. IIFL PMS is among the biggest Portfolio Management Services in India. In this context, this article answers how to open a PMS account.

How to Open a PMS account as an Individual Investor?

To open a PMS account, you have to follow the key steps mentioned:

• Step 1: The PMS account opening process begins with comparing companies based on their strategies, performance, fees and brand value.
• Step 2: Reach out to the PMS firm you choose and express your interest.
• Step 3: Review their investment options, risk profiles, and minimum investment requirements.
• Step 4: Ensure that you have opened a demat account to invest in these securities
• Step 5: Collect and fill out the PMS application forms from the website of the chosen PMS firm
• Step 6: Submit KYC documents such as a photocopy of your PAN card, Aadhaar card, address proof, passport-size photo, and income proof.
• Step 7: Transfer the required investment amount to the specified bank account for PMS.

Once your documents are verified, your Portfolio Management Services account opening will be completed. These steps mark the beginning of a customised investment portfolio tailored to your objectives and managed by experts.

What is the minimum investment in PMS?

SEBI has been regulating the PMS industry for decades. Since PMS dealings are an unpredictable space, small investors are shielded by mandating a minimum investment amount. As per SEBI norms, a PMS account can be opened and held, with a minimum corpus of Rs. 50 lakhs. Until 2019, this amount was restricted to Rs. 25 lakhs. However, different financial service providers have varying balance requirements for the financial products offered by them.

Documents Required to Open a PMS Account in India

To open a PMS account as an individual, you would be required to submit the following documents:

• PAN card
• Photographs
• Address proof – Aadhar card
• PAN and Aadhar card copy of Guardian – If Nominee is minor
• Second Holder – PAN and Aadhar card copy
• Bank proof – Any one of the following
  1. Pre-printed canceled cheque in the name of the Account Holder
  2. If cheque not preprinted then – Bank statement / Passbook required
  3. In case a canceled cheque is given in the name of a proprietary firm then a bank letter along with a bank stamp is mandatory.
• FATCA Declaration
• Copy of the POA provided to the PMS
• Demat account opening form
• Term sheet

Final word

All forms of investment come with risk, including portfolio investments. The risks involved are clearly stated for your perusal. Before opening a PMS account, do make sure to understand all the nitty-gritty involved.

Frequently Asked Questions

Does the PMS offer any guaranteed returns?

No, PMS managers cannot offer guaranteed returns to investors.

Can I terminate my PMS account?

Yes, you can. Every financial service provider has a different process in place for the purpose of terminating an account.

How to open a PMS account as an investor?

To open a PMS account, you have to approach a SEBI-registered PMS provider and complete the required documentation. Once the account is verified, you have to sign an agreement and transfer the minimum investment amount to the PMS account.

What is the minimum investment required to open a PMS account?

According to SEBI’s regulations, the minimum investment required to open a PMS account is ₹50 lakh. This amount ensures that PMS remains a service targeted at high-net-worth entities and individuals.

What types of investments are included in a PMS portfolio?

A PMS portfolio may include equities, fixed income instruments, debt, cash, structured products and other securities. This composition depends on the chosen strategy and your risk profile.