PMS Guide for NRIs: The Nuts and BoltsPMS Guide for NRIs: The Nuts and Bolts

We recently conducted a webinar for NRIs on investment options in India, and the response revealed something striking: there's a significant knowledge gap around Portfolio Management Services (PMS) as an investment structure. Not the investment strategies or performance promises, but the fundamental mechanics of how PMS works and why it might be particularly well-suited for Non-Resident Indians.

This surprised us, because in many ways, PMS addresses the core challenges NRIs face when investing in India better than any other structure. It offers direct ownership of securities, professional management, lower entry barriers than Alternative Investment Funds (AIFs), diversification flexibility, and the ability to customize mandates based on individual requirements. For NRIs juggling time zones, regulatory complexities, and operational challenges, PMS provides an elegant solution.

Yet despite these advantages, few PMS providers actively serve NRIs due to operational complexities, which means there's limited educational content specifically designed for the NRI community. The result? Many NRIs either miss out on this option entirely or make decisions based on incomplete information.

This guide fills that gap. We'll examine PMS from an NRI perspective – the structural mechanics, fee analysis using real data, operational requirements, and decision framework for determining when PMS makes sense for your situation. We'll compare it against mutual funds and direct equity investing, showing you both the advantages and limitations.

Whether you ultimately choose PMS, mutual funds, or direct equity, you deserve to make that decision based on complete information. This guide represents our effort to provide the education that the NRI community needs but hasn't been getting.

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Read other sections of the guide here :

1. Introduction
2. PMS Explained: Professional Management with Direct Ownership
3. PMS vs. Mutual Funds vs. AIFs: Which Investment Route Works Best for NRIs?
4. PMS Inner Workings: Banking Partners, Custody Structure, and Trading Execution
5. Understanding PMS Fee Structures: Is ‘Skin in the Game’ Really in Your Interest?
6.  Is PMS Right for You? – Who Should Consider PMS and When

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At Capitalmind, we help NRIs optimize their Indian investments through compliant, growth-oriented strategies. For more details, reach out to us at NRI Desk

Disclaimer : This article does not constitute any solicitation of securities business from Residents of the United States of America or from a jurisdiction where accessing this without proper registration is restricted.