Plan your investment
What Our Plans Cover
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A concentrated portfolio of small...
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Professional research in an under-...
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Direct holding in your own demat a...
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Regular reporting of holdings and...
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?
- Any protection against severe drawdowns
- Reliable liquidity, particularly during falls
- Any guarantee of return
- Suitability as a core portfolio holding
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
Small cap PMS strategies invest in smaller listed companies, usually holding a concentrated portfolio. The segment is under-researched, which creates genuine opportunity for a manager willing to do the work.
It is also the least forgiving part of the listed market. Falls of fifty per cent or more occur during downturns, liquidity thins precisely when you want to exit, and business failure is a real outcome rather than a theoretical one.
The PMS structure compounds both sides. Concentration in a segment that is already volatile produces a portfolio that can substantially outperform or substantially lag, and the illiquidity of small caps means the manager cannot always exit a position at a sensible price when they want to.
Who should consider it
Investors with substantial portfolios allocating a satellite portion to small caps, with a long horizon and genuine tolerance for large declines.
It is not appropriate as a core holding, for money needed within five years, or for anyone who would sell during a severe drawdown.
Benefits
- Access to an under-researched segment where mispricing occurs
- Concentration in a manager's highest-conviction small cap ideas
- Direct ownership of every holding
- Manager can hold illiquid positions without redemption pressure
- Full transparency of holdings and transactions
- Potential for substantial outperformance in a favourable cycle
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 small capitalisation companies
- Professional research in an under-covered segment
- Direct holding in your own demat account
- Regular reporting of holdings and performance
Not included
- Any protection against severe drawdowns
- Reliable liquidity, particularly during falls
- Any guarantee of return
- Suitability as a core portfolio holding
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.
- Drawdowns of fifty per cent or more are normal in this segment. If that would cause you to exit, this is the wrong strategy.
- Liquidity constraints affect the manager as well as you. Exiting a meaningful position in a small company can take weeks and move the price.
- Size this as a satellite allocation. A severe small cap decline should be uncomfortable rather than damaging to your overall position.
- A small cap mutual fund provides similar exposure with more diversification and lower cost. Assess whether the concentration genuinely adds value for you.
- Equity investments carry market risk, and this segment carries materially more including permanent loss of capital.
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
How large can the drawdowns be?
Fifty per cent or more during market downturns is normal in this segment rather than exceptional, and recovery can take years. The honest question is whether you would hold through that, because selling near the bottom converts volatility into permanent loss.
Does liquidity affect the manager too?
Considerably. Exiting a meaningful position in a small company can take weeks and move the price against you. That constraint shapes what the manager can do, particularly during a fall when everyone wants out at once.
Is this better than a small cap mutual fund?
It is more concentrated and more expensive, with the freedom to hold illiquid positions without redemption pressure. A fund is more diversified, cheaper and has a much lower minimum. Whether the concentration adds value depends entirely on the manager.
How much should I allocate?
A satellite portion — an amount whose severe decline would be uncomfortable rather than damaging. Small caps concentrated in a PMS is among the highest-risk positions available in listed equity, and sizing is the main defence.
Can I lose money permanently here?
Yes. Small companies fail, and a concentrated portfolio can hold a meaningful position in one that does. Equity investments carry market risk, and this segment carries the highest of it in listed markets.
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.