Portfolio Management Services (PMS) give investors direct ownership of securities and a personalized portfolio managed by professionals. 

A PMS fact sheet is the single-page gateway to understanding a strategy’s objectives, risks, fees, and track record. 

If you want to compare portfolio management services, do a PMS returns comparison, or simply shortlist PMS services in India, mastering fact-sheet analysis will save you time and money. 

Here’s a clear, step-by-step guide for the same!

1) Start with the essentials: mandate, style, and objective

A fact sheet must state the strategy’s investment objective, whether it is large-cap concentrated, multi-cap, thematic, or hybrid. 

Confirm the mandate is consistent with what you want: risk level, holding period, and permitted instruments. 

PMS providers operating under SEBI regulations are expected to give clear disclosures regarding their investment style and philosophy, allowing investors to evaluate whether the approach aligns with expectations.

2) Look at returns – but dig deeper than the headline number

Fact sheets usually show absolute returns (monthly, YTD, 1-, 3-, 5-year) and sometimes CAGR. 

Still, don’t just compare raw returns. Check:

  • Benchmark used and whether it’s appropriate for the mandate.
  • Rolling returns or multi-period performance to see consistency.
  • Survivorship bias: older strategies with long track records matter more than cherry-picked short-term spikes.

Many credible research platforms provide analytical dashboards that allow investors to compare PMS performance with filters across parameters like AUM, benchmark, and portfolio vintage, enabling a more accurate PMS returns comparison rather than relying solely on headline numbers.

3) Understand risk metrics

A good fact sheet shows volatility, maximum drawdown, and downside capture. 

Ask whether returns were generated with concentrated bets or broad diversification. If volatility is high and drawdowns are severe, you must be comfortable with the path, not just the destination.

4) Fee structure and alignment of interest

PMS fee models vary: fixed management fee, plus performance fee, sometimes with high-water marks. 

Check:

  • Exact management and performance fees.
  • Hurdle rates and high-water mark treatment.
  • Any entry/exit or custody charges.

Even a strong strategy may deliver lower real returns if fee layers are heavy, so ensure the structure is transparent and the fact sheet documents all cost components clearly.

5) Portfolio snapshot and concentration

Fact sheets should list top holdings, sector allocations, cash levels, and the number of positions. 

Look for:

  • Concentration risk: top 5 – 10 holdings as a percent of AUM.
  • Turnover: frequent churning can imply trading-based returns and higher transaction costs.
  • Hidden exposures, such as derivatives or unlisted securities allowances.

Certain PMS categories are permitted to invest in unlisted or alternative instruments under defined conditions, and this should be clearly mentioned in the disclosures.

6) People, process, and philosophy

Numbers tell one story, but the team writes the next chapter. 

Fact sheets should briefly describe the portfolio manager, the decision-making process, risk controls, and any co-investment policies. 

Assess whether the manager’s philosophy matches the portfolio construction you see.

7) AUM, vintage, and client base

Strategy size matters. Very small AUMs may be experimental, and very large AUMs may make nimble strategies less effective. 

Check vintage (how long the strategy has run) and the typical investor profile. Note that in India, PMS investments usually require a significant minimum commitment, so evaluate liquidity needs and risk capacity before committing.

8) Use disclosure documents and third-party verification

Always read the formal Disclosure Document and SEBI filings for red flags. 

Independent third-party analytics platforms that evaluate PMS strategies can help investors run comparisons objectively instead of relying only on the claims of the fact sheet. 

Platforms such as PMS AIF WORLD offer structured research, comparative tools, and performance intelligence that support data-backed decisions while maintaining neutrality.

Quick checklist before you invest

  • Objective matches your goals and horizon.
  • Returns are benchmarked and consistent, not episodic.
  • Risk metrics and drawdowns are acceptable.
  • The fee structure is clear and reasonable net of tax.
  • Portfolio concentration and turnover are transparent.
  • Team, process, AUM, and vintage checked.
  • Disclosure documents downloaded and read.

Wrapping Up

Fact sheets are shorthand for due diligence. Treat them as the starting point for questions, not the final answer. 

With a checklist and a careful read, you can turn a page of numbers into a confident investment decision. And when it’s time to compare multiple strategies or explore PMS returns comparison across managers, having access to structured research and analytical tools can make all the difference.

That’s why, when investors want to go beyond surface-level numbers and compare strategies meaningfully, they often lean on independent research platforms like PMS AIF WORLD. 

By curating comprehensive performance libraries and objective insights, the platform helps investors understand each strategy in its true context and make decisions grounded in clarity rather than assumptions.