PMS vs Mutual Funds: Can You Invest in Both for Better Returns?

The money talk may be scary, at least the money talk with lots of new-fangled terms. But as women, we have lots of responsibilities daily—it’s high time that we get our money working harder in our favor too.

You may have heard of Mutual Funds, as they’re one of the most famous investing products. PMS (Portfolio Management Services), though, is the big league after that—in short, more high-end, more personalized.

So, if you’re settling on one over the other, or if you can afford both, then let’s explore PMS vs Mutual Funds comparison in simple language.

What is PMS (Portfolio Management Services)?

PMS is like your own personal stylist, but instead of selecting clothes for you, the portfolio manager selects investments on your behalf. It’s tailored, in that professionals manage your money in your name with the objectives, risk tolerance, and goals you specify.

PMS Features:

• Personalized Portfolio: PMS is tailored to your preferences, risk tolerance, and financial objectives. You receive a customized portfolio that is exclusively yours.
• Active Management: A professional actively manages your portfolio, making decisions based on the state of the market. This implies that your investments are continuously reviewed and modified to achieve optimal results.
• Higher Minimum Investment: A significant investment is needed for PMS, typically ₹50 lakh or more. As a result, it is better suited for people with large savings or high net worth.
• PMS Investment Returns: Here, there is a higher risk and higher reward because your money is concentrated on particular stocks and assets. PMS carries a higher level of risk. However, if the manager makes wise choices, this can also result in increased returns.
• Transparency & Reporting: You will receive regular updates about your portfolio’s performance, making it easier to understand how your money is doing. You can also track your investments online with a lot of services.
• Higher Charges: Higher management fees are typically associated with PMS; these fees may be flat or performance-based, depending on the performance of your portfolio.

What are Mutual Funds?

Mutual Funds are just like the readymade garments trade. Some people save in their pockets, and there is a qualified fund manager who puts that money in stocks or bonds.

Features of Mutual Funds:

• Low Minimum Investment: Mutual funds are a cost-effective choice with a low minimum investment requirement because you can begin investing with as little as ₹100. You can check out Lxme’s expert-curated Rs.100 portfolios, which are well-researched.
• Diversified Investment: Mutual funds make investments in stocks, bonds, and other assets. This spreads the risk. Other assets may perform well even if one performs poorly.
• Managed by Experts: Similar to PMS, professional fund managers oversee mutual funds and make investment decisions. However, the approach is less tailored to you in this instance.
• No Personalization: Mutual funds, in contrast to PMS, do not customize the portfolio to meet your unique financial objectives. Investing in a pre-made portfolio that aligns with a particular investment strategy (such as debt, equity, or hybrid funds) is what you do.

You can check out the Lxme app. We have created goal-based baskets where you can start investing as per your goals and needs.

• Lower Charges: Mutual funds charge less than PMS. The fund manager’s fees and other running costs are covered by the expense ratio they charge.
• Liquidity: Compared to PMS, mutual funds have more liquidity. While PMS investments may have lock-in periods, mutual fund units can be bought and sold at any time (subject to the fund’s regulations & your goals).

PMS vs Mutual Funds comparison:

Aspect	PMS (Portfolio Management Services)	Mutual Funds
Minimum Investment	₹50 lakh+	As low as ₹100
Management Style	Personalized, Active Management	Professional, but Standardised
Risk	Higher (Concentrated Investments)	Moderate (Diversified Investments)
Returns	Potentially higher	Higher to Moderate
Fees	Higher (Management Fees & Charges)	Lower (Expense Ratio)
Best For	High-net-worth Investors	Everyone

Investment is more than selecting the ultimate product—it’s finding the appropriate blend for your goals. PMS offers exclusivity and potential high returns but requires big capital and is riskier. Mutual Funds are beginner-friendly, pocket-friendly, and anyone can invest.

Mutual Funds are the easiest way in when women start on their financial journey. After gaining more confidence and more disposable wealth, you can then invest into PMS as well.

And don’t you forget, the clever lady doesn’t just save, but invests wisely!

Check out the Lxme app for well-researched, diversified, and expert-curated mutual fund portfolios.