How should I compare PMS returns with mutual fund returns after fees and taxes?
Published 19 September 2026
PMS brochures often show attractive gross or net returns. Are those numbers directly comparable with mutual fund returns, or do fees, churn and taxes change the actual outcome?
Headline PMS returns may not tell you how much you actually keep.
A PMS can have management fees, performance fees, custodian charges, brokerage costs, STT and taxation created by portfolio churn.
So if a ₹1 crore PMS portfolio earns 15% gross, that does not automatically mean the investor keeps ₹15 lakh.
Even a quoted return after some fees may not fully reflect taxes or every cost depending on how the return is presented.
The relevant number for the investor is the final return that actually remains after costs and taxes.
“The gross return can actually be very misleading.”
“The question that you should be asking is how much you are actually going to keep.”
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.
A PMS can have management fees, performance fees, custodian charges, brokerage costs, STT and taxation created by portfolio churn.
So if a ₹1 crore PMS portfolio earns 15% gross, that does not automatically mean the investor keeps ₹15 lakh.
Even a quoted return after some fees may not fully reflect taxes or every cost depending on how the return is presented.
The relevant number for the investor is the final return that actually remains after costs and taxes.
“The gross return can actually be very misleading.”
“The question that you should be asking is how much you are actually going to keep.”
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.