How do I know whether a PMS is actually adding value to my existing mutual fund portfolio?

Published 19 September 2026

Amar from Mumbai

I already own several good mutual funds across large-cap, mid-cap and different styles. If I add a PMS, how do I know whether it is genuinely diversifying my portfolio or just adding more of the same stocks?

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

Before adding a PMS, look at what you already own.

If the PMS simply holds many of the same stocks, sectors or styles as your existing mutual funds, it may only increase the same exposure rather than improve the portfolio.

The idea discussed in the video is a core-plus-satellite approach.

Your mutual funds can form the core, while the PMS can play a more specific satellite role.

There is no point in adding another product unless it brings something meaningfully different to the portfolio.

“At times it just may overlap and it becomes just an add-on with increasing exposure to the same stock or the sector that you may already have.”

“There is no point in adding a product. You have to add value when you add a product to your portfolio.”

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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