When we hear of PMS, we typically don’t think of structured or strategic investing. What comes to mind instead is profit or superior returns. And honestly, that’s largely because PMS has been marketed in this way over the years.

There’s no denying that PMS does promise higher returns. But there’s a catch. 

The catch lies in finding the right PMS, one that actually has the potential to generate meaningful wealth over time.

So how does one do that?

This is where things become challenging. The problem isn’t the lack of the best PMS in India; it’s making the PMS comparison in India correctly. 

And thus, this article exists. To help you out with the absolute PMS comparison in India.

So, let’s get started!

Define the comparable set.

Before jumping into returns or risk numbers, the first thing that needs to be sorted is whether the PMS strategies being compared are even comparable in the first place. 

At a structural level, PMS strategies should be aligned with a few basic parameters.

This includes asset class exposure. Some PMS strategies operate purely in equities, while others follow a multi-asset approach or have meaningful exposure to debt or hybrid structures.

Then comes the mandate type. 

In a discretionary PMS, most portfolio decisions are taken by the fund manager. In non-discretionary mandates, those decisions are constrained by client-defined instructions, which naturally limit how actively the strategy can be executed.

Investment style is another aspect that’s frequently overlooked. A core strategy will not behave the same way as a value or growth strategy, and once you move into sectoral or thematic PMS, the risk profile changes even more materially.

Finally, check the benchmark category being used. A PMS benchmarked against a broad-market index cannot be assessed the same way as one benchmarked to a large-cap or mid-cap index.

Avoid comparisons where:

  • Highly concentrated portfolios are placed against diversified ones
  • Sectoral or thematic strategies are compared with core strategies
  • Derivative-heavy strategies are evaluated alongside long-only portfolios

Around this stage, most people realise platforms like PMS AIF WORLD save a lot of effort. Without that, you’re basically going through mandate details PMS by PMS, and it’s not the best use of time.

Optional filters for better alignment

These are not mandatory, but they improve comparability significantly:

  • Minimum track record
  • Minimum AUM
  • Investor profile alignment

Compare Performance Behavior

Once you have a comparable set, this is where most people go straight to returns and stop. 

But returns, by themselves, don’t say much unless you understand how those returns were actually made.

You have to see how a PMS has behaved across different time periods and market phases.

Multi-period return comparison

A simple way to start is to line up returns across multiple horizons.

Period PMS A PMS B Benchmark
1Y x% y% z%
3Y
5Y

At this point, it’s usually not about which PMS shows the highest return. What helps more is running a few basic checks before drawing any conclusions.

  • One-year performance can be misleading, so multi-year returns carry more weight. 
  • It’s also worth checking how often the PMS beats its benchmark, not just how strong a single year looks. 
  • CAGR still matters, but consistency across years matters just as much.

Compare Risk Metrics

A PMS might look like a star performer, but risk can tell a different story. Returns without context usually don’t mean much.

This is where risk-adjusted performance becomes important.

Common metrics investors look at:

  • Sharpe ratio
  • Sortino ratio
  • Beta
  • Alpha

Each metric highlights a different aspect of risk. None of them works well in isolation.

Maximum drawdown

Two PMS strategies may show similar long-term returns, yet behave very differently during market stress.

A simple starting point is maximum drawdown.

  • A PMS falling 22% and another falling 35% are not carrying the same risk.

  • As a rough rule, a difference of 8 – 10% or more usually indicates a materially higher downside profile.

This often reveals more than headline CAGR numbers.

Recovery analysis

You can see how deep the losses go from drawdowns, and recovery shows whether the PMS can get back on track or struggles when markets turn.

  • Time to recover from peak-to-trough losses reflects the manager’s response to stress.

  • Faster recovery indicates effective capital allocation.

Volatility and concentration risk

Even strong-performing PMS strategies can hide risk beneath the surface.

It helps to check:

  • Overall volatility
  • Exposure to a single sector or theme
  • Concentration in top holdings

High concentration or heavy sector bias can boost short-term returns, but it also increases the chance of sharp drawdowns when conditions change. 

Wrapping Up

This framework changes the way PMS are compared. It shifts attention away from short-term performance and headline-driven decisions.

However, trying to do this comparison by hand across several PMS is a pain. Using a platform like PMS AIF WORLD helps; everything from risk and drawdowns to recovery and concentration is visible at a glance, making it easier to focus on sensible strategies.