PMS Strategies & Manager Selection
A working-level walk-through of common PMS strategy archetypes — large-cap quality, small-mid cap growth, multi-cap concentrated, value, sector-rotation — and the manager-selection framework that separates skill from luck.
Common PMS Strategy Archetypes
Indian PMS strategies fall into a small number of archetypes — large-cap quality, small-mid cap growth, multi-cap concentrated, value, sector-rotation...
PMS Manager Evaluation Framework
PMS manager evaluation systematically reviews five dimensions: 5+ year strategy-consistent track record, AMC infrastructure and ownership stability, o...
PMS Portfolio Construction & Reporting
PMS portfolio construction follows a disciplined process: stock selection per stated strategy and conviction, position sizing within concentration lim...
Ready to start PMS Strategies & Manager Selection?
Begin with the first topic and work through all 3 topics at your own pace.
What you’ll learn in PMS Strategies & Manager Selection
A working-level walk-through of common PMS strategy archetypes — large-cap quality, small-mid cap growth, multi-cap concentrated, value, sector-rotation — and the manager-selection framework that separates skill from luck.
Frequently asked questions
How do I know if my PMS manager is following the stated archetype?
Quarterly portfolio statements show the actual holdings, sector allocation, and turnover. Compare these against the archetype's expected pattern. A "large-cap quality" PMS holding 35% in mid-caps or running 70% turnover has drifted. Trustner's ongoing monitoring includes archetype-drift detection.
Are theme-led PMS strategies dangerous?
Not dangerous per se — but inappropriate for core allocation. A theme-led PMS concentrates in one macro narrative; if the narrative reverses, the entire allocation underperforms simultaneously. Use theme PMS only as a 5-10% portfolio satellite, not as the central allocation.
Should I have multiple PMS allocations across different archetypes?
For HNIs with ₹3+ crore liquid wealth, splitting PMS allocations across 2-3 archetypes (e.g., large-cap quality + multi-cap concentrated) reduces archetype risk and manager risk. Below ₹3 crore liquid wealth, a single PMS allocation is more practical.
What if a PMS manager has only 3 years of track record?
For new launches, evaluate the PM team's prior track record at other AMCs. A PM with 12 years of strong AMC performance launching a new PMS at a fresh AMC may be evaluated based on the prior history. New PMs without any prior track record warrant 3-5 years observation before empanelment.
How do I detect "strategy drift" in a PMS?
Compare quarterly portfolio statements against the stated strategy mandate. Indicators: large-cap quality PMS holding 35%+ in mid-caps; sector-rotation PMS staying static in one sector for 6+ quarters; concentrated PMS suddenly running 35+ stocks. Trustner's ongoing monitoring includes drift detection.
Should I prefer Discretionary or Non-Discretionary PMS for evaluation purposes?
Discretionary PMS evaluation focuses on PM skill and execution. Non-Discretionary evaluation is more about advisory research quality. Discretionary is materially more common in retail PMS distribution. Either way, the evaluation framework principles (track record, attribution, drift detection) apply.
How quickly are PMS quarterly statements expected?
SEBI mandates statements within 30 days of quarter-end. Top-tier PMS managers deliver within 15-20 days. Beyond 30 days, the AMC is breach of regulatory requirement; this is an operational red flag warranting immediate clarification.
Can I see real-time positions in my PMS account?
You see actual transactions in your demat account immediately as they occur — every trade is visible the same day on your broker statement. The "PMS portfolio statement" with full holdings and analytics is provided quarterly with regulatory lag, but the underlying transactional transparency is immediate via your demat account.
Free course · 3 topics · 40 min