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HDFC Securities Portfolio Management Services

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HDFC Securities Portfolio Management Services

Portfolio Management Services (PMS) is a service wherein investment in stocks, fixed income, cash, debt, and other securities is managed by professional, qualified and highly-experienced portfolio managers. HDFC Securities Ltd, one of the best brokers in India offers portfolio management services to clients, under which, portfolio managers backed by a strong research team creates & manage clients investment portfolio as per their investment objective and risk appetite. HDFC Securities Portfolio Management Services is known as one of the top PMS services providers in India.

HDFC PMS Services Types

    The broker offers two types of HDFC PMS services to investors includes discretionary PMS and non-discretionary PMS.

    Discretionary PMS

    Under the discretionary portfolio management services, entire investment decisions are made by managers’ judgment on behalf of clients. In discretionary PMS, all decisions such as buy and sell of securities, stock selection, in and out timings etc. are taken by portfolio managers rather than clients. Clients only get information about their investment portfolio.

    Non-discretionary PMS

    Unlike discretionary, in the non-discretionary PMS, all decisions such as buy & sell of any security, stock selection decisions, trade execution timings etc. are taken by clients and based on it, portfolio managers have to execute the order. Thus, portfolio managers play a limited role in investment management and held other responsibilities such as portfolio reshuffling, portfolio custody & monitoring, books management etc.

HDFC PMS Benefits

  • Portfolio Management Service is available in line with individual investment goals and risk tolerance capacity.
  • As an investment portfolio is managed by experienced professionals therefore, risk can be effectively controlled.
  • Portfolio managers control risk through diversifying investment across different asset classes, sectors, and stocks.
  • As PMS follows an active investment strategy, therefore, can deliver aggressive returns also.
  • HDFC PMS offers various themes which help to get benefits during different economic times.
  • As investment is managed by HDFC PMS managers, therefore, your investment is in safe hands.
  • In both types of discretionary and Non-discretionary PMS account, clients get all the information thus, transparency is maintained.
  • Flexible commission model including prepaid commission, volume-based commission, and profit-based commission model.
  • There are various strategies followed by the broker in line with client risk-bearing capacity.
  • HDFC Sec has a customer support team to help clients to resolve their queries.

HDFC PMS Strategies

    HDFC Securities PMS Strategies differs from client to client because every client has different investment specification like risk-bearing capacity, tenure, and financial goal. Keeping into account different investors’ expectations, HDFC PMS strategies include large-cap, diversified and small-midcap investment strategies. Let’s understand each of HDFC PMS Strategies in detail.

  • Large-cap strategy

    As its name, the strategy aims to create wealth by investing in large-cap companies. Such companies have high market capitalization and stable businesses therefore, less prone to downturn market risks. HDFC PMS Managers choose and filter large-cap companies with good profitability margins (i.e. ROE, net profit etc.), sound valuation and robust growth prospectus.

  • Diversified strategy

    In the Diversified PMS strategy, investment managers change their portfolio allocation in equity instruments of different companies such as large-cap, mid-cap, and small-cap. As the investment is made in companies of different market cap therefore, helps to reduce portfolio risks. The strategy is particularly suitable for moderate risk-takers.

  • Small-Midcap strategy

    According to its name, the strategy predominately invest in mid-cap and small-cap companies. As such companies are at the middle or initial level of growth stage, therefore, have huge growth possibility in long-term. However, at the same time, it is prone to high risk during short-term period. At HDFC Securities, PMS managers select the best quality of mid-cap and small-cap stocks with strong fundamentals, qualitative management, and reasonable valuations.

HDFC PMS Returns

    The performance is the most important factor that encourages and attracts more and more clients to avail HDFC PMS services. In terms of returns aspect, as HDFC PMS is managed by experienced and renowned fund managers therefore, its PMS returns come in the list of toppers.

    • HDFC PMS 3 years CAGR return is 11%.
    • HDFC PMS 5 years CAGR return is 9%.
    • HDFC PMS 7 years CAGR return is 12%.
    • HDFC PMS 10 years CAGR return is 15%.
    • HDFC PMS 11 years CAGR return is 16%.

HDFC PMS Investment Plans

    The minimum amount of portfolio management service is Rs. 25 Lac. There are four different PMS investment plans offered by HDFC Securities based upon the investment amount that is presented below:

  • Bronze: Portfolio management services from Rs. 25 Lac to Rs. 50 Lac.

  • Silver: Portfolio management services from Rs. 50 Lac to Rs. 1 Cr.

  • Gold: Portfolio management services from Rs. 1 Cr. to Rs. 5 Cr.

  • Platinum: Portfolio management services beyond Rs. 5 Cr.


    The fee structure of the broker includes prepaid commission, volume-based commission, and profit-based commission model.

    Prepaid commission model

    As its name, in this model, the commission is paid in prior or advance. Clients can go for this particular model wherein they need to pay a fixed percentage of the investment amount to the portfolio manager.


      • Investors pay a fixed commission, it doesn’t increase with the higher PMS return.


      • Clients pay a commission in advance without even getting PMS services.
      • If clients don’t satisfy with the services then he will incur the loss of commission and investment loss as well.

    Volume-based commission model

    It is a commission model based on transaction volume completed during a year. In this mode, investors pay a fixed percentage commission on the total transaction volume.


      • Charges lower commission compared to other models.


      • If there is an unnecessary number of transactions, then you have to pay a greater commission.

    Profit-based commission model

    This is the most popular commission model wherein, the commission is charged on the total returns generated by clients on their investment portfolio.


      • A fixed commission on portfolio return.


      • Commission increases with the higher return.
      • Charges higher commission percentage than other models.

HDFC PMS Charges

    HDFC Securities PMS charges include management fee, upfront charge, custodian charge, depository charge and others, that are addressed below;

  • PMS Brokerage: HDFC charges brokerage on the transactions executed by the fund manager, ranging between 0.012% - 0.022% of the transaction value.

  • Management fee: As the portfolio is managed by HDFC Portfolio managers who take a management fee from the client as per the commission model opted.

  • Upfront fee: It is paid in advance and may range in between 1.5% - 2 % of the transaction value.

  • Custodian charges: This charge may vary in between 0.3% - 0.4% of total asset value.

  • Depository charges: HDFC Sec charges depository charge of 0.15% - 0.18% of asset value.

  • Exit load fee: The broking house suggests a tenure of 3 years to clients but if in case, clients withdraw their investment within 1-year tenure then exit load fee of 1% - 2% has to be paid.

Final thoughts

    HDFC Securities PMS is one of the most trusted PMS providers in the country. The broker follows multiple investment strategies keeping into consideration investors' risk attitude, tenure, and investment goal to provide satisfactory PMS results to clients. Besides this, the broking house further offers flexible investment plans & commission models, among which, clients can choose the one as per their requirement.

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Last updated on 5th Mar 2020


Yes, HDFC Sky offers portfolio management services. HDFC PMS is a service offered by the broker wherein investment portfolio of client is managed by professionals with the aim to generate higher return. The broker offers both the discretionary and non-discretionary PMS account services to clients.


Keeping into account varied investment expectations and goals, HDFC PMS follows three different strategies;

  • Large cap strategy: This strategy aims to create wealth by investing in top or large-cap companies which are more stable and well-established businesses, therefore, prone to lower market risks.
  • Diversified strategy: This strategy aims to create wealth and manage risk by investing in equities of companies across market capitalization such as large-cap, mid-cap and small-cap.
  • Small-Mid cap strategy: As its name, in this strategy, a significant proportion of investment is undertaken in mid-cap and small-cap companies that have strong growth prospectus. Therefore, the strategy is more suitable to high-risk taker investors for the long-term investment horizon.


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