How they work
In a mutual fund, you own units of a large shared pool. In a PMS, the shares sit in your own demat account and you can see each one.
The minimum is very different too. SEBI sets it at ₹50 lakh for a PMS, while many mutual funds let you start a SIP with a few hundred rupees.
Costs and tax
Mutual fund expenses are taken out inside the fund. A PMS can charge a fixed fee, a performance fee or both. And since you own the shares directly, each sale can create a tax entry in your name.
Who should look at a PMS
A PMS can work for someone with a large portfolio who wants a concentrated set of stocks and can handle bigger swings. For most people, a few good mutual funds will do the job at a lower cost.
Before you move to a PMS, ask what it will give you that your current portfolio doesn't.
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This is general information. It isn't personal advice. Investments in the securities market are subject to market risks. Read all related documents carefully before investing. Mutual fund investments are subject to market risks; read all scheme related documents carefully. Insurance is the subject matter of solicitation. Past performance does not guarantee future results.