Why the high minimum investment requirements in PMS?

Hi @nithin,

What should a professional like me do who has 15L to invest and has no time or technical knowledge to spare . Can’t be part of a PMS , doesn’t believe in stock advisory or model portfolio services . Also , been a Mutual fund investor since six years in the best possible way of SIP and my returns in none of the six years have beaten inflation or even their underlying benchmark . Have diversified and invested in real estate , fixed income , gold .

I want to invest 15L in equities directly for a long term of more than a decade or two . No trading .

20% CAGR for 20 years or more for an investment amount of 15 L .

I would be thrilled if you guide me on this .

PMS is generally considered to be riskier than Mutual funds, and hence a higher entry barrier. It was 25lks until last year before SEBI increased it to 50lks.

Some of the PMS folks also offer advisory services, essentially the same portfolio that you would get in the PMS, but instead of them executing the trades, you’d have to do it on your own. Maybe check them out. Some of them are also listed on @smallcase

I think the best way is to get started with a good investment advisor (RIA). Do check out some of the guys on smallcase.

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Can’t RIA execute the trade in clients account with his approval or through POA agreement with his client regarding this.

No, can’t do. There is no POA allowed by SEBI which gives the right for someone else to trade on behalf of your account.

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yes but what if client doesnt have related infrastructure to execute trades and shares his login credentials with third party (here to his ria) , i know its little grey area but i see many people taking this route.

Yeah, today there are no rules against sharing login/pwd to your account, but it is best not to.


My friend has a trading terminal but he does transactions for all his family members from one window but through separate client codes . how is it possible ?

Maybe that broker is giving out dealer terminal to trade for family members ,still this is little grey area.