What is the most important question to ask a PMS manager before investing?

Published 19 September 2026

Rajan from Pune

Most PMS presentations focus on historical returns and the manager’s successes. What should I ask to understand the downside before I invest?

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

Ask the manager or adviser: “When is this PMS likely to underperform?”

You should understand in what market cycle the strategy may underperform, how long that underperformance can last and how deep it can be.

You should also understand the concentration in the portfolio and the cost implications.

Then ask yourself whether you can emotionally and financially stay invested through that difficult period.

If you cannot handle the strategy’s underperformance, you may end up exiting during exactly the wrong phase.

Understanding when a strategy fails can be more useful than knowing how well it performed in the past.

“One question that you must ask the manager or the advisor is when you think this PMS is likely to underperform.”

“If you can’t handle or be through that underperformance period, then you are likely to lose substantially.”

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.

Ask Sachin

Get your question answered by our partner advisors.

Related guides

More from Sachin Kabra

Subrata from Kolkata

What percentage of my portfolio should I put into PMS?

If PMS is meant to be a satellite and not the core of the portfolio, how much allocation is reasonable without letting one strategy dominate my wealth?

Uday from Noida

I have ₹50 lakh. Does that mean I should invest in a PMS?

₹50 lakh is the minimum investment required for PMS in India. If I have that amount available, does that automatically make PMS suitable for me?

Amar from Mumbai

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

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…

Anoop Dixit from Pune

Why can a PMS outperform strongly for a few years and then suddenly underperform?

I often see PMS products marketed using strong 3-year or 5-year returns. How do I know whether that outperformance came from manager skill or simply from the investment style…

Harsh Shah from Bangalore

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

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”?