Did you know? Portfolio Management Services (PMS) are fast turning into the most preferred PMS Investment in India 2025 for NRIs and HNIs, imparting personalised strategies and expert-driven wealth growth. 

Unlike mutual funds, Best PMS in India offers tailor-made stock selection, direct ownership, and better flexibility, making it ideal for buyers looking for superior risk-adjusted returns. 

‘According to a report by Business Today, the combined assets under management (AUM) for PMS and Alternative Investment Funds (AIFs) have grown at a compound annual growth rate (CAGR) of approximately 33% over the last decade, rising from around ₹1 lakh crore to ₹18.87 lakh crore between FY14 and FY25. 

This growth trajectory suggests that the combined AUM for PMS and AIFs is expected to surpass ₹100 lakh crore by 2030. 

Similarly, The Economic Times reports that the Indian alternative investment industry, encompassing both PMS and AIFs, is projected to cross the ₹100 lakh crore mark by 2030, based on estimates from PMS Bazaar.’

NRIs and HNIs are embracing PMS and are turning to leaders like Bonanza Wealth for their custom-designed asset allocation, active risk management, and professional expertise, helping them navigate global marketplace volatility with confidence. 

Is PMS the right move for your portfolio in 2025? Let’s explore!

What is Portfolio Management Services (PMS)?

Portfolio Management Service is a professional financial service that, with the help of a research team, knowledgeable stock market experts, and portfolio managers, oversees your equity portfolio.

Many investors find it difficult to manage the equity portfolios in their demat accounts. PMS is an organised method for increasing returns on investments while lowering risk. Without doing any work, you can make wise decisions backed by thorough research and verifiable facts. It also better equips you to handle market challenges. Bonanza Wealth is one of the names that one can rely on in the market for PMS and other investments.

Types of Portfolio Management Services

1. Discretionary PMS

   – The best wealth managers in India make all investment decisions on behalf of the client, including buying, selling, and portfolio allocation.  

   – Clients cannot directly control individual transactions but can set overall investment goals.  

   – Ideal for clients who prefer a hands-off approach with Personalized Wealth Management.

2. Non-Discretionary PMS

   – The portfolio manager provides advice and recommendations, but the client has the final say on all investment decisions.  

   – Best suited for clients who want to maintain control but seek professional guidance.  

   – It offers a balance between expert advice and personal decision-making.

3. Advisory PMS

   – The portfolio manager provides strategic advice and helps clients in decision-making, but the client executes the transactions themselves. 

   – This service is generally more cost-effective than discretionary PMS, as it offers less active management.  

   – Suitable for investors who want expert insights while managing their PMS Investment India in 2025.

Each type offers varying degrees of control, involvement, and expertise, allowing clients to choose according to their investment preferences and risk tolerance.

Why PMS Stands Out for NRIs and HNIs in 2025

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In the dynamic financial scenario of 2025, Non-Resident Indians (NRIs) and high-net-worth individuals (HNI) face unique investment challenges and opportunities. With the global market fluctuation, the Best PMS in India, Bonanza Wealth, has emerged as a compelling solution. 

Here is why PMS stands out for NRIs and HNIs in 2025:

1. Personalized Investment Strategies

Imagine that there is a financial plan that is as unique as your fingerprint – PMS makes it possible!

Unlike mutual funds, which provide standardized investment approaches, the PMS provides a tailored strategy that aligns with personal financial goals and risk appetites. This customization ensures that your portfolio reflects your unique financial aspirations.

2. Direct Ownership of Securities

Take the driver’s seat in your investment journey with direct ownership of assets!

With PMS, investors own individual securities, offering more transparency and investment control. This allows direct ownership for strategic decisions that can increase portfolio performance.

3. Flexible Fee Structures

Performance pay—experience a fee structure that rewards success!

The PMS provides flexible fee models, including performance-based fees, which align the interests of the portfolio manager with the investor. This flexibility can lead to cost capacity and potentially high net returns.

4. Simplified Regulatory Compliance

Focus on growth while experts handle the red tape for you!

For NRI, the regulatory landscape can be complicated to navigate. PMS providers often handle compliance requirements, simplify the investment process, and ensure adherence to the required regulations.

5. Professional Portfolio Management

Let experts navigate the market maze, guiding your investments to success!

The PMS provides access to seasoned portfolio managers who actively manage investments, take advantage of market opportunities, and reduce risks. This professional oversight is important in volatile markets.

6. Enhanced Transparency and Reporting

Stay informed and in control with crystal-clear reporting!

Investors receive detailed reports and regular updates, providing clear insights into portfolio performance. This transparency promotes trust and enables informed decisions. 

7. Strategic Diversification

Build a resilient portfolio that stands strong amidst market storms!

The PMS allows for strategic diversification in asset classes and sectors, tailored to individual preferences. This approach can increase returns and reduce risk exposure. 

8. Tax Efficiency

Keep more of your earnings with smart tax strategies!

PMS providers often apply tax-skilled HNIs Wealth Growth Strategies, optimize post-tax returns, and align with investors’ financial goals.

9. Minimum Investment limit

Elevate your investment game with exclusive, high-net-worth strategies!

While PMS typically requires a higher minimum investment than mutual funds, this range ensures a more individual and dedicated management approach for the sophisticated needs of HNI and NRI.

10. Alignment with Global Investment Trends

Stay ahead of the curve with investment strategies designed for today’s markets!

In 2025, there will be a notable shift toward personalized and actively managed investment solutions. PMS aligns with this trend and provides NRIs and HNIs with an effective tool to navigate global market volatility. 

Portfolio management services provide a strong platform for NRIs and HNIs to effectively manage wealth in 2025. 

With personalized strategies, professional management, and enhanced control, PMS stands out as an intelligent option for discerning investors looking to thrive amid market volatility.

Personalised Investment Strategies for High Net-Worth Investors

High Net-Worth Individuals (HNIs) require tailor-made investment strategies to effectively manage and grow their substantial assets. The personalised investment  approach offers several key advantages:

1. Customized Financial Planning

Personalized financial services enable HNIs to create comprehensive financial plans that align with their unique goals, risk tolerance, and investment portfolios. 

This individualized method serves as a roadmap for informed decision-making and long-term wealth-building through PMS.

2. Diversified Investment Opportunities

HNIs often have access to a broader range of investment options, including alternative assets such as private equity, real estate, and specialized funds.

3. Tax Efficiency and Estate Planning

Personalised strategies can greatly increase tax efficiency. 

By using tax-advantaged investments, strategic time of income and deductions, and trusts and other estate planning tools, HNI can effectively reduce tax liabilities and ensure efficient wealth transfer to future generations.

4. Advanced Risk Management

Tailored solutions for Risk management in portfolio management services, including diversification strategies, hedging, and alternative investments, are important for protecting wealth. 

Personalized financial services offer these customized solutions, allowing HNIs to address specific risks and achieve their financial objectives. 

5. Access to Innovative Investment Vehicles

The financial industry has introduced new tools to maximize after-tax returns for high-net-worth individuals. 

Including strategies such as direct indexing, option overlays, and private investment in client portfolios can help reduce taxes, manage risk, and target higher returns.

Including these personalised investment strategies enables HNIs to effectively manage their wealth, capitalize on diverse opportunities, and achieve their long-term financial goals.

Higher Returns with Active Portfolio Management

Active portfolio management involves making strategic investment decisions as compared to passive strategies that repeat benchmark performances. 

Proponents argue that active management can obtain higher returns by redeeming market inefficiencies. For example, Cliff Essence firm, AQR, reported a 21.1% average annual return in the last 5 years by employing quantitative strategies that exploit statistical variations among assets.

However, the success of active management is not uniform. The British fund boutique Ruffer experienced a loss of 6.3% in 2023 and a loss of 1.8% in 2024, which did not occur after the possibility of a recession in the US stock market.

It highlights the risks and requirements for investors to carefully assess the strategies and track records of fund managers.

Despite these challenges, active management can provide benefits in volatile markets. 

Fabiana Fedley, Chief Investment Officer of M&G Investments, stressed that active stock-picking during an uncertain time is important, in which companies like Siemens Energy and SAP yield remarkable returns despite geopolitical and economic challenges.

KEEP IN MIND:

‘While active portfolio management has a high return capacity, it requires diligent research and understanding of associated risks. Investors should weigh these factors against their financial goals and risk tolerance when considering active management strategies.’

Tax Efficiency & Regulatory Advantages for NRIs

India’s evolved financial scenario offers several tax efficiencies and regulatory benefits that make it an attractive investment destination for Non-resident Indians (NRIs) and high net-worth individuals (HNIs). 

Here is how NRIs benefit-

1. Double Taxation Avoidance Agreements (DTAA) 

NRIs often face the challenge of levying tax on the same income in both India and their country residences. 

DTAA helps in mitigating this issue, which ensures better taxation and better returns on investment. 

•  88 countries have DTAA agreements with India, currently with 85 in force.
• Tax relief on interest income- NRIs Indian banks deposit interest (normally taxed at 30%) can reduce this to 10-15% under DTAA.
•  DTAA applies to salary, business profits, capital gains, and rental income, which helps NRIs save taxes in many income sections.
•  To take advantage of DTAA benefits, NRI has to submit Form 10F and a Tax Residency Certificate (TRC) from his country’s residence. 

Why it matters: NRIs can significantly reduce tax liabilities and make their Indian investments more tax-efficient.

2. Liberalized Foreign Investment Policies 

The Government of India has simplified and streamlined investment policies to attract foreign investments, ensuring a trouble-free experience for NRIs.

• Foreign Exchange Management Act (FEMA) and RBI rules have smooth repatriation of funds. 
• In most areas, 100% foreign direct investment (FDI) pre-approval is not required under the automatic route. 
• NRIs can invest in equity, mutual funds, government bonds, startups, and more, offering several paths for portfolio diversification. 
• Simplified procedures ensure easy repatriation of earnings and capital by increasing liquidity for NRIs. 

Why it matters: NRIs can invest with confidence, knowing that India’s regulatory framework supports hassle-free wealth creation and management.

3. Enhanced Investment Opportunities in Government Securities 

The Government of India is actively working to simplify PMS Investment India 2025 processes for NRIs in safe, stable assets like government bonds.

• SEBI has initiated a “light-touch” registration process to encourage NRI participation in government securities.
• Government bonds provide stable, risk-free returns, making them an ideal investment for long-term wealth conservation.
• NRIs investing in government securities support India’s economic growth while enjoying assured returns and tax benefits.

Why it matters: NRIs can now access safe, fixed-income investments with minimal regulatory hassle.

4. Attractive Deposit Schemes

To attract foreign exchange flows, India has introduced attractive deposit schemes tailored for NRIs.

• High interest rate ceilings on FCNR-B deposits boost returns, making it a profitable and safe investment.
• NRIs can enjoy tax exemptions on FCNR interest earnings, depending on their country’s DTAA treaty with India.

Why it matters: NRIs can protect their wealth from currency fluctuations while earning competitive returns on deposits.

5. Favorable Real Estate Investment Climate 

India’s real estate sector is witnessing strong growth, and with tax encouragement, it creates an ideal investment for NRI.

• Recent income tax relief measures have increased disposable income, promoting the demand for real estate.
• Affordable housing projects and commercial real estate provide high appreciation capacity, making property investment lucrative.
• Relaxed property ownership laws allow NRIs to easily buy, sell, and rent properties, which ensures long-term value generation.

Why it matters: NRIs can capitalize on India’s growing real estate market with high returns and long-term value appreciation.

India’s proactive approach to investment policies, tax treaties, and financial regulations provides NRIs and HNIs a favorable environment to increase their wealth. 

By taking advantage of these tax efficiencies and regulatory benefits, NRIs can:

• Diversify their portfolios with tax-efficient investment options
• Reduce tax liabilities through DTAA and strategic plan.
• Maximise returns with government-backed securities, high-yield deposit schemes, and real estate investments.

Comparing PMS with Mutual Funds & Other Investment Avenues

When choosing between Portfolio Management Services, Mutual Funds, and other investment options, the best fund managers for mutual funds in India, and PMS must consider factors like customization, returns, risk, and liquidity. 

Here is how to compare:

1. PMS vs. Mutual Funds

• Active vs. Passive Management– PMS actively adjusts holdings based on market trends, while mutual funds allow a buy-and-hold strategy with limited flexibility.
• Personalised vs. Standardized Approach– PMS offers customized investment strategies tailored to individual risk profiles, while mutual funds follow a predefined portfolio structure for all investors.
• Direct ownership vs. Pooled Investment- PMS investors own individual stocks, ensuring transparency, whereas mutual funds pool money from multiple investors.
• Higher Investment Threshold– PMS is designed for HNI and NRI investors with a minimal investment of 50 lacs, whereas mutual funds allow investments as low as 500/-

2. PMS vs. Other Investment Avenues

• Bonds & Gold– These offer stability but lower yield potential, whereas PMS actively seeks high-growth investment opportunities.
• Fixed Deposits (FDs)– FDs offer capital protection but low returns that may not beat inflation, unlike PMS, which aims for market-linked high returns.
• Real Estate– While real estate provides tangible asset ownership, it lacks liquidity and diversification, making PMS a more flexible alternative.

So, which one should you choose?

• Choose PMS if you want personalized strategies, direct stock ownership, and active wealth growth.
• Opt for mutual funds if you prefer lower costs, passive management, and diversification.
• Consider FDs, real estate, or bonds for low-risk, long-term stability.

Your choice depends on your financial goals, risk appetite, and investment horizon!

How to Get Started with PMS as an NRI or HNI

Investing in portfolio management services offers personalized investment strategies tailored to financial goals for non-resident Indians (NRIs) and high net worth individuals (HNIs). Here is a step-by-step guide to help you get started:

1. Understand PMS and its benefits

PMS provides professional management of your investments with customized portfolios designed to meet specific objectives. This service is particularly beneficial for PMS for NRIs and HNIs seeking personalized attention and strategies beyond standard investment avenues.

2. Eligibility Criteria

To invest in the Best PMS in India, you must be an NRI or HNI with the necessary documentation, including proof of identity and address and overseas residency. Ensuring compliance with the Foreign Exchange Management Act (FEMA) regulations is essential.

3. Open the necessary bank accounts

NRIs need to open specific bank accounts to facilitate investments:

• NRE (Non-Resident External) account: Allows repatriation of both principal and gains.
• NRO (Non-Resident Ordinary) account: Suitable for funds originating in India but with limited repatriability.

Some PMS providers may also require a portfolio investment scheme (PIS) account as per RBI guidelines.

1. Complex KYC Formalities

Compliance with know-your-customer (KYC) norms is mandatory. You’ll need to submit documents like your passport, PAN card, overseas address proof, and recent photographs. Some platforms also facilitate video KYC, simplifying the process.

2. Choose a reputable PMS provider

Research and select a PMS provider that has a strong track record and expertise in managing NRI and HNI portfolios. For instance, Bonanza Wealth’s approach to steady returns provides the best results even when the market is dicey. 

When choosing another firm, consider factors like investment philosophy, performance history, fee structure, and client testimonials. 

3. Understand Tax Implications

NRIs investing in India are subject to specific tax regulations. India has double taxation avoidance agreements (DTAA) with various countries, which can provide tax relief. 

It’s advisable to consult a tax advisor familiar with NRI taxation to understand liabilities in both India and your country of residence.

4. Execute the agreement

Once you’ve selected a PMS provider and completed all the formalities, you will enter into a PMS agreement. This contract outlines the terms of service, investment strategy, fees and other pertinent details. Review it carefully before signing.

5. Fund your Account

Transfer the investment amount from your NRE/NRO account to the PMS account. Ensure compliance with RBI guidelines regarding fund transfers and repatriation.

6. Monitor your investments 

Regularly review performance reports provided by your PMS manager. Stay informed about market trends and communicate with your portfolio manager to ensure alignment with your financial goals.

By following these steps, NRIs and HNIs can effectively begin their journey with Portfolio Management services in India, leveraging professional expertise to achieve their investment objectives.

Is PMS the Right Choice for You in 2025?

In 2025, Portfolio Management Services (PMS) stand out as a strategic investment choice for NRIs and HNIs, offering personalized strategies, active management, and superior returns, With evolving market opportunities, PMS ensures diversification, tax efficiency, and expert-driven decision-making.

Bonanza Wealth is empowering investors with tailored PMS solutions, leveraging in-depth market insights and professional expertise to maximize wealth growth. 

Whether you’re looking for long-term stability or high-growth opportunities, Bonanza Wealth provides customized investment plans to suit your financial goals.

Ready to elevate your strategy? Contact Bonanza Wealth today!