Ask Value Research

Does PMS Offer Better Returns than MFs?

Mutual funds are transparent and easy to evaluate, while there is no verified data on the performance of PMS

I was approached by a financial advisor who claimed that PMS returns over the last five years are superior to mutual funds. Where can I obtain PMS performance? Also, is there any recent study/article on the trade off between PMS and mutual funds?
- Dhiraj Khanna

You said it. There is no verifiable data available in the public domain on the performance of PMS. Also, you have to shell out ₹25 lakh to join a PMS service. PMS services are tailored to individual needs, so you can't compare the performance of one scheme with the other. Compared to this, MFs are extremely transparent and their performance is easily available in the public domain. They are also not personalised. That means it is very easy to compare the performance of one scheme with another scheme.

This article was originally published on August 18, 2015.

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