Is PMS actually better than mutual funds once my portfolio becomes large?

Published 19 September 2026

Harsh Shah from Bangalore

My portfolio has grown significantly and my relationship manager says I should now move to PMS. Is PMS really the natural next step once someone becomes a “serious investor”?

Sachin Kabra Co-founder Foliyo (SEBI RIA No: INA000023454), ex-Director HDFC Private Wealth, Business Head Motilal Oswal AMC LinkedIn

No. PMS is not automatically the next step after mutual funds.

Mutual funds can continue to remain the core of a portfolio because they are simple, regulated, diversified and suitable for long-term wealth creation.

PMS can play a role when you specifically want something different — for example, a concentrated portfolio, a high-conviction manager or a particular investing style that may not be available through a diversified mutual fund.

PMS should have a role in your portfolio. It should not be bought simply because your portfolio has become large.

“PMS is not automatically the next step after your mutual fund. It’s not a trophy that proves you’re rich.”

“Mutual fund can be the core of your portfolio and PMS can be satellite.”

This is not personalized investment advice. Your portfolio size, goals, liabilities and risk tolerance may be different, so assess your own situation and discuss it with your financial advisor.

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