3 Factors to Consider Before Investing in a PMS

As Founder and CEO of Coheron Wealth, the question I hear most often from clients is some version of "which PMS should I choose?" My answer rarely starts with the product.

In fact, the first aspect of consideration is always learning and absorbing as much as possible about the client. Because research is the core of everything we do, and build upon.

Before any PMS recommendation reaches a client's table, I run it through three filters.

The objective isn't to recommend a PMS. It's to ensure the one you choose is built around your wealth journey.

The first is risk tolerance and drawdown comfort. Every credible PMS strategy will see periods of underperformance. I want to know, with precision, how you will respond when your portfolio dips 15 to 25 percent in a correction. For HNI portfolios in India, this isn't a hypothetical exercise; it is the difference between staying invested through a cycle and exiting at the worst possible moment.

The second is the PMS manager's track record and philosophy. Returns alone tell an incomplete story. Factors such as investment philosophy, portfolio construction, consistency of the investment approach, and historical performance across different market conditions are among the aspects considered during evaluation. Past performance, however, is not necessarily indicative of future results.

The third is portfolio structure, liquidity, and cost. I examine how the portfolio is built, how readily you can exit, and whether the fee structure is justified by risk-adjusted returns, the real benchmark in any serious Portfolio Management Services mandate in India.

At Coheron Wealth, the objective isn't to recommend a PMS. It's to ensure the one you choose is built around your wealth journey, not the other way round.

Disclaimer: This article is intended solely for educational and informational purposes and should not be construed as investment advice, a recommendation, or an offer or solicitation to invest in any security or Portfolio Management Service. Investments in securities and PMS are subject to market risks. Investors should carefully read all relevant disclosure documents and consult their financial or tax advisers before making any investment decision.