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A short, number-first reference for investors weighing a Portfolio Management Service. You will find the ₹50 lakh entry ticket, how fees and GST add up, and what capital gains tax looks like on a real example. For the full explanation, use our Complete PMS Guide.

By Trilithon (SEBI Reg. No. INP000009898) · Rates as of October 2026 · Updated 23 October 2026 · 4 min read

Short answer: Portfolio Management Services (PMS) in India need a minimum of ₹50 lakh per client, except for accredited investors. You hold the securities in your own name with an independent custodian, there is no regulatory lock-in, and fees combine a management charge (plus 18% GST) with an optional performance share. Gains are taxed in your hands at 20% if short-term and 12.5% above ₹1.25 lakh if long-term on listed equity.

The numbers that matter

Minimum to start: ₹50 lakh per client; accredited investors are exempt
Can it be securities, not cash? Yes, cash, existing securities or a mix, as long as the total value meets the minimum
Lock-in: None under SEBI rules; an exit load may apply as per your agreement
Who holds the shares? You own them; they sit in your name with an independent custodian
Performance fee, where charged: Commonly 10% to 20% of profits, subject to a high-water mark
GST on management fee: 18%
Tax on short-term gains (listed equity): 20%, for holdings of 12 months or less
Tax on long-term gains (listed equity): 12.5% on gains above ₹1.25 lakh in a financial year

Why the entry ticket is ₹50 lakh

SEBI set the PMS minimum at ₹50 lakh in January 2020, up from ₹25 lakh. The aim is to keep concentrated, actively managed portfolios with investors who have the means and experience to handle swings in value. Because the same floor applies to every registered manager, you can compare providers without worrying about different entry tickets.

Two details are easy to miss. First, once you are invested, a partial withdrawal is allowed only if the remaining portfolio stays at or above ₹50 lakh. Second, accredited investors are outside this minimum under SEBI's accredited investor framework; ask the manager whether you qualify.

What PMS fees can look like: a worked example

Your agreement and the manager's Disclosure Document set the real fees. This example uses a made-up rate to show how GST changes the total.

Hypothetical example (not Trilithon's fee): Portfolio value ₹1 crore. Management fee of 1.5% a year. Fee = ₹1,50,000. Add 18% GST (₹27,000) and you pay ₹1,77,000 a year before any performance fee, brokerage, custodian or audit charges. That is why you should compare managers on total cost, not just the headline percentage.

If a performance fee applies, it is charged only on profits above the previous peak value of your portfolio (the high-water mark), and often only above a hurdle return. Ask for exact terms in writing.

What tax looks like: a worked example

Each time your manager sells a holding at a profit, that sale creates a gain in your name. The year's totals are what you report.

Illustrative example, listed equity, surcharge ignored: Suppose your PMS portfolio books ₹8 lakh of gains in a year. If all long-term: 12.5% × (₹8,00,000 − ₹1,25,000) = ₹84,375, or ₹87,750 with 4% cess. If all short-term: 20% × ₹8,00,000 = ₹1,60,000, or ₹1,66,400 with 4% cess. The ₹1.25 lakh long-term exemption applies once per year across all your listed equity, not once per account. Check with a chartered accountant for your own position.

The gap between the two outcomes (about ₹78,650 here) is why holding period and portfolio turnover are worth asking about before you invest.

Five common PMS myths

"PMS is just a mutual fund." No. In a mutual fund you own units of a pool. In PMS you own the underlying shares individually.
"The ₹50 lakh has to be cash." No. Eligible securities you already hold can count toward the minimum.
"My money is locked in." There is no regulatory lock-in, though an exit load may apply.
"SEBI registration guarantees returns." Registration confirms the manager is regulated. It says nothing about future performance.
"I only pay tax when I withdraw." No. Tax arises on each profitable sale inside the portfolio, even if you never withdraw.

Is PMS right for your ₹50 lakh? Three quick checks

Time horizon. Could this money stay invested for several years without being needed?
Comfort with swings. Concentrated portfolios can fall sharply in weak markets. Would you stay invested?
Tax position. Do you understand how realised gains will affect your yearly tax bill?

If the answer to all three is yes, the next step is to read a manager's Disclosure Document and talk to the team.

Quick FAQs

How much money do I need to start PMS in India? SEBI requires at least ₹50 lakh per client. Accredited investors are exempt from this minimum.

Does Trilithon hold my shares? No. Your securities are held in your name with an independent custodian, not with the portfolio manager.

Can I count shares I already own toward the minimum? Yes. You can fund a PMS account with cash, eligible securities or a combination, provided the total value reaches ₹50 lakh.

Is there a lock-in period? SEBI rules do not impose one. Your agreement may specify an exit load if you withdraw early, so check it before signing.

Why is GST charged on PMS? PMS management fees are a service charge, and 18% GST applies on that fee. It is on top of the fee itself.

What tax do I pay on PMS gains? For listed equity, short-term gains (held 12 months or less) are taxed at 20%, and long-term gains at 12.5% above ₹1.25 lakh a year, plus applicable cess and surcharge. Please confirm with a tax advisor.

Where can I learn more? Our Complete PMS Guide covers how PMS works, types of PMS, SEBI rules and how to choose a manager.

Go deeper

Complete PMS Guide. PMS Strategies. AIF vs PMS. SEBI PMS Regulations. PMS FAQs.

Talk to our team

Discuss whether PMS suits your goals, risk profile and tax position. Schedule a Call. Contact Us.

Disclaimer: Investments in securities markets are subject to market risks. Past performance is not indicative of future results. Please read all disclosure documents carefully before investing. Trilithon Partners LLP (SEBI Reg. No. INP000009898) is registered with SEBI under the SEBI (Portfolio Managers) Regulations, 2020. This page is for general information only and is not investment, tax or legal advice, or an offer or solicitation to invest. Examples are illustrative and use assumed rates. Tax rates and regulations are stated as of October 2026 and may change. Registration granted by SEBI does not guarantee the performance of the portfolio manager or provide any assurance of returns. To lodge a complaint on Smart ODR Portal, visit https://smartodr.in/login. SEBI Master Circular for Portfolio Managers.

TRILITHON

Trilithon is a SEBI-registered investment manager offering a Category III Alternative Investment Fund and Portfolio Management Services for high-net-worth investors across India. Headquartered in Hyderabad, Telangana.

SEBI Registered · Category III AIF & PMS

AIF. SEBI Registration Number: IN/AIF3/25-26/1808

Useful

Disclaimer. How to invest. Category III AIF. PMS Guide. Grievance Redressal. Investor Charter. SEBI Compliance. Accessibility Statement.

PMS. Grievance Redressal. Terms & Conditions. Investor Charter. PMS in India. PMS Guide. FAQs. SEBI Compliance. Disclosure Document. Accredited Investor Framework. Fees. SEBI Master Circular. FAQ on Adoption of Standardized, Validated and Exclusive UPI IDs for Payment. IAAP – Grievance Redressal & Nodal Officer details.

SEBI Reg. No: INP000009898. LLPIN: ACM- 5983.

UPI handle: trilithon.sbi@validsbi. UPI QR. SEBI Registered UPI QR for the Firm.

Contact. AIF. Cabin #3, 4th Floor, 1A & 1B Jyothi Imperial, Janardana Hills, Lumbini Avenue, Gachibowli, Hyderabad, Telangana, India - 500032.

PMS. Office 10, 4th Floor, Jyothi Imperial, Gachibowli, Hyderabad – 500 032, Telangana, India.

Distributor Details. Name of Distributor : Lotusdew Securities Private Limited. Enrollment Date : 06/05/2026. APRN Code : APRN08995.

investor.relations@trilithon.in. www.trilithon.in.

Important Disclaimer: Investment in Alternative Investment Funds and Portfolio Management Services involves substantial risk of loss, including the possible loss of the entire principal invested. Category III AIFs do not have pass-through tax status. Past performance, if any, is not indicative of future results. Nothing on this page constitutes investment advice, an offer to sell, or a solicitation to buy any securities. Prospective investors must read all scheme-related documents carefully before investing.