# Portfolio Management Services (PMS) — Arthum Wealth Services

A SEBI-registered portfolio manager runs a focused strategy on your behalf, with securities held **in your own name and demat account** — not as units of a pooled scheme. SEBI's prescribed minimum investment is **₹50 lakh**.

## What we help with
- Deciding whether PMS is right for you at all (often a mutual fund portfolio is the better answer)
- Shortlisting strategies by mandate: large-cap, mid & small-cap, flexicap, thematic
- Discretionary vs non-discretionary vs advisory mandates
- Reading the portfolio manager's Disclosure Document
- Comparing fee structures: fixed fee, performance fee, hurdle rate, high-water mark
- Taxation — gains are taxed in your hands on each underlying transaction
- Onboarding, demat and power-of-attorney formalities
- Ongoing review against the stated benchmark

## How we evaluate a portfolio manager
1. Strategy consistency — does the live portfolio match the mandate?
2. Post-fee returns, not gross headline returns
3. Drawdowns across 2018, 2020 and 2022
4. Portfolio churn and the resulting tax drag
5. Concentration — top-5 weight, sector weight, liquidity of small holdings
6. Fee structure — performance fee without a high-water mark is a red flag
7. Team stability — is the manager who built the record still running it?

## Who it isn't for
If ₹50 lakh is most of your investable corpus, PMS is the wrong product. It works as a satellite allocation once the core portfolio, emergency fund and protection are already in place.

*PMS investments are subject to market risks. There is no assurance or guarantee of returns. Read the Disclosure Document carefully before investing.*