“The more important question is whether the PMS has a demonstrable edge in asset allocation and fund selection — because that is where the real value lies. Investors should ask questions to find out whether the PMS provider has a clear investment framework and the execution discipline to rebalance when it matters. Then the fee is worth paying,”
Since mutual fund-based PMSes are a relatively new category, most providers have limited track records. That said, disclosure norms have improved — Sebi now requires PMS providers to publish strategy returns in a standardized manner, along with fee structures, and mandates the high-watermark principle to prevent double-charging on profits. Performance data for individual providers is available on the Association of Portfolio Managers in India (APMI) website.