What is the Minimum Ticket Size for PMS?

Last Updated: 3 Sep 2025

A portfolio management service (PMS) is a customized investment product that is designed based on the investor’s unique needs and objectives. It is a more customized form of mutual funds since the mutual fund is essentially a mass broadcaster of strategy. However, there is a minimum investment in PMS that is needed, and we will come to that later. The PMS minimum investment has been constantly evolving over the years.

The unique feature of PMS is that it is managed and run by a group of experienced professionals with the capacity to do extensive research and analyze securities for the client. The PMS minimum investment is normally handed over to the service provider by the client and from that point, the journey begins. The PMS essentially tries to optimize the returns by investing in securities like equity, fixed income, commodities, etc. But more importantly, the minimum investment in PMS makes it a slightly exclusive product making unique services possible and feasible.

Minimum Investment in PMS

Before we get into the concept of minimum investment in PMS, let us first understand who is eligible to invest in a PMS. The following categories of investors can invest in a PMS, subject to PMS minimum investment capacity and willingness. Here is the list.

• Individual investors subject to completing KYC
• A Hindu Undivided Families (HUF)
• Partnership Firms
• Sole Proprietorships
• Association of Persons or AOP
• Private and Public Limited Companies
• Non-resident Indians, except certain geographies
• Overseas corporate bodies, trusts, societies; subject to RBI approval.

Now we arrive at the minimum investment in PMS, or the minimum ticket size as it is referred to. The minimum investment in PMS has undergone a change. For instance, the PMS minimum investment began at Rs. 5 lakh in 1993 when the SEBI guidelines for PMS were initially released. Subsequently, this was raised to Rs. 25 lakhs, and in November 2019, SEBI further raised the minimum investment in PMS to Rs. 50 lakhs. SEBI has further provided that if there is a deficit in the individual accounts, then the deficit is to be filled within a particular time period.

There has been much controversy regarding the minimum investment in PMS, which has been a discouragement to the growth of the PMS segment for many. But this PMS minimum investment is solely aimed at providing a measure of security for the investors and to see that not too many retail investors get attracted towards PMS, which is a high-risk proposition better suited for High Net Worth Individuals (HNIs). The whole idea of the minimum investment in PMS is to keep it an exclusive service for investors with a higher risk appetite and a better understanding of risk. It is in this context that the enhancement of the minimum investment in PMS to Rs 50 lakhs must be viewed.

The minimum investment for Portfolio Management Services eligibility also ensures that only serious investors go for this service with the necessary risk appetite and understanding of the markets. Also, the PMS minimum investment condition puts a greater onus on the PMS fund managers to put more focus on a smaller family of investors to bring the best quality of service for them.

Why Should You Invest in PMS?

Portfolio Management Services (PMS) can be a great option for those who can afford to invest the minimum investment required by PMS and like to have professional management of their portfolios. Financial markets are extremely volatile and complicated, and to make good investment decisions, one needs to have in-depth knowledge, research, and ongoing observation. For most, keeping up with these requirements along with professional and personal life is not easy, and hence, PMS proves to be a good option. Here are the main reasons for investors opting for PMS.

1. Expert Management

An effective portfolio management involves a solid understanding of various asset classes, economic trends, and market movements. PMS has the benefit of professional fund managers with years of experience, industry knowledge, and data-backed strategies to guide your investments in your best interest.

2. Time-Saving Convenience

For people who have hectic professional lives or businesses, monitoring and managing investments on a day-to-day basis can be simply unfeasible. PMS solves this by taking up the task of monitoring, rebalancing, and optimising the portfolio from time to time.

3. Tailor-Made Investing

In contrast to mutual funds, PMS provides tailored investment solutions. Fund managers are involved very closely with you, taking into account your investment goals, risk tolerance, and investment horizon. This creates a tailor-made portfolio that fits exactly with your individualised needs.

4. Performance-Driven Structure

PMS tends to follow a performance-based fee structure, in which the incentives for the fund manager are directly correlated with the returns that they provide to you. The managers usually get better incentives only after overcoming a predetermined hurdle rate and hitting above the high-water mark so that their goals are aligned with yours.

5. Transparency and Tracking

PMS providers are very transparent in their operations, regularly providing you with performance updates, portfolio statements, and investment decision insights. This keeps you in the know and assured of how and where your funds are being invested.

6. Diversification under Professional Supervision

A PMS portfolio may comprise equities, debt, and other asset classes, with proportions shifted in line with the market. This professional management minimises misallocation risk and maximises long-run returns.

What are the Types of Portfolio Management Services?

Broadly, portfolio management services can be classified into two categories.

• Discretionary PMS gives almost a free hand to the portfolio manager to make the investment and portfolio decisions on behalf of the investors, without consulting them. Currently, most companies offer discretionary PMS.
• Non-discretionary PMS is more advisory, wherein the portfolio manager advises on suitable investments depending on the investor’s risk appetite and objectives. The decision to invest or not is left to the investor, but trade execution is done by the portfolio manager.

Conclusion

Portfolio Management Services (PMS) provides a professional and customised investment style, making it suited for capital-abundant investors with higher risk tolerance. The Rs.. 50 lakh PMS minimum ticket size ensures selectivity and enables the managers to serve a serious, though smaller, client base. With advantages such as professional management, tailored strategy, and performance-linked incentives, PMS is an effective instrument in fulfilling financial objectives. But it is still most appropriate for investors who can grasp market risks and want active, customised portfolio management.

Frequently Asked Questions

What is the current minimum investment for PMS in India?

The current SEBI-mandated minimum amount for PMS in India is Rs 50 lakh. This threshold ensures that PMS remains an exclusive product for investors with higher risk tolerance.

Who can invest in a PMS?

Eligible investors include individuals, HUFs, partnership firms, companies, NRIs (with some exceptions), and certain institutions with RBI approval. All must meet the minimum ticket size requirement and complete KYC.

How is PMS different from mutual funds?

PMS offers customised investment strategies tailored to each investor’s goals and risk profile, whereas mutual funds follow a uniform strategy for all investors. This personalisation is the main reason PMS is preferred by high-net-worth individuals.

Is PMS suitable for retail investors?

PMS is generally not recommended for small retail investors due to its high minimum investment and higher risk profile. It is better suited for experienced investors with the capacity to handle market volatility.