Plan your investment
What Our Plans Cover
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A concentrated portfolio of listed...
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Professional research
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Direct holding in your own demat a...
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Regular reporting of holdings and...
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Dividends and corporate actions re...
Who Can Consider This Plan?
- Minimum investment of ₹50 lakh, as regulated
- Indian resident individual, HUF, trust, company or NRI
- Completed KYC with the portfolio manager
- A demat account in the investor's own name
- Acceptance by the portfolio manager
What May Not Be Covered?
- Diversification comparable to a mutual fund
- Any guarantee of return or outperformance
- Protection against market falls
- Low costs
- Availability below the ₹50 lakh minimum
Always check the policy wording before you commit.
Why Choose Wealth & Covers?
- Expert advice to choose the right plan
- Plans from leading investments companies
- Hassle-free process and documentation
- End-to-end support, including claim assistance
- Dedicated relationship manager
- Expert Guidance Personalised advice from experienced investments professionals.
- End-to-End Support From choosing the right plan to claim assistance, we are with you always.
- Claims Assistance Hassle-free claim support to ensure you get what you deserve.
- Transparent Process Clear information, easy documentation and a hassle-free experience.
Overview
Equity PMS strategies invest in listed shares, typically holding a concentrated portfolio of fifteen to twenty-five companies. That concentration is the structural difference from a mutual fund, which faces regulatory limits on how much it can hold in any one name.
The argument for concentration is straightforward. A manager's best ideas are worth more than their fortieth-best, and a portfolio confined to high-conviction positions expresses skill more directly than a diversified one.
The counter-argument is equally straightforward. Concentration amplifies whatever the manager's skill actually is, in both directions, and it removes the diversification that protects an investor when a view turns out to be wrong. Both statements are true at once.
Who should consider it
Investors above the minimum who want concentrated equity exposure with professional management. Investors who have assessed a specific manager's process and want it applied to their capital.
Investors seeking straightforward equity growth are usually better served by a diversified fund at a fraction of the cost.
Benefits
- Concentration levels mutual fund regulation does not permit
- Direct ownership of every share in your demat account
- Full transparency of holdings and transactions
- Portfolio can accommodate your constraints and existing holdings
- Your tax position is your own
- High-conviction expression of a manager's research
What is included, and what is not
Read the right-hand column first. It is the one that tends to surprise people later.
Included
- A concentrated portfolio of listed equities
- Professional research, selection and rebalancing
- Direct holding in your own demat account
- Regular reporting of holdings and performance
- Dividends and corporate actions received directly
Not included
- Diversification comparable to a mutual fund
- Any guarantee of return or outperformance
- Protection against market falls
- Low costs
- Availability below the ₹50 lakh minimum
Terms vary between providers and between plans from the same provider. The offer document you receive is what governs — we will walk you through it before you commit.
How it works with us
- 1 We test the case against a mutual fund first A ₹50 lakh minimum and higher fees need justifying. If a fund does the same job, that is the honest answer.
- 2 Strategy and manager assessed on process, not last year How the portfolio is constructed, how it behaved in a bad year, and how consistent the process has been.
- 3 Fee structure understood in full Fixed fee, performance fee, hurdle, high-water mark and exit load. These vary enormously and compound over time.
- 4 Account opened and portfolio built Shares are bought in your own name in your own demat account. You see every transaction as it happens.
- 5 Reviewed on process and reported for tax Every trade is a taxable event in your hands. We keep the reporting straight and review against the mandate, not the market.
Important considerations
The things a brochure tends to leave out. Read these before you decide.
- Concentration amplifies the manager's skill in both directions. Understand the position sizing and what happens if two large holdings disappoint together.
- Compare against a diversified equity fund net of all fees over a full market cycle. That is the test the structure must pass.
- Turnover creates taxable events in your hands. A high-turnover concentrated strategy has a real tax drag.
- Ask what the worst drawdown was and how long recovery took. Concentrated portfolios fall further and recover differently.
- Equity investments carry market risk, and concentrated portfolios carry materially more of it.
Documents required
- PAN card
- Aadhaar or other identity proof
- Address proof
- Bank account proof
- Demat account details, or consent to open one
- Completed KYC and PMS agreement
- Power of attorney in favour of the portfolio manager
Frequently Asked Questions
Why hold only twenty companies?
Because a manager's best ideas are worth more than their fortieth-best, and a concentrated portfolio expresses research more directly. The counter is that concentration removes the protection diversification provides when a view is wrong. Both are true, which is why sizing the allocation matters.
How much more volatile is it?
Meaningfully. With fewer holdings, individual company outcomes matter more, and a portfolio can lag or lead a diversified fund substantially. Ask specifically about the worst drawdown and the recovery period rather than annualised returns.
Does it beat a mutual fund?
Sometimes, and not reliably. The honest comparison is net of all fees over a full market cycle against a low-cost diversified fund. Some managers clear that bar consistently; many do not, and the fee differential is certain while the outperformance is not.
What is the tax impact of turnover?
Every rebalancing trade realises gains in your own name and is taxable, unlike a mutual fund where the fund rebalances internally. On a high-turnover strategy that drag is real and should be part of your assessment.
Can I exclude certain stocks?
Generally yes — accommodating constraints is one of the genuine advantages over a fund. If you hold a large position in your employer's shares, or want to exclude a sector, a PMS can build around that in a way a fund cannot.
Want a shortlist instead of a catalogue?
Tell us the situation and an advisor comes back with two or three options that actually fit — and names what each one gives up.