Debt PMS surge among HNIs — but are investors paying more for customisation vs mutual funds?

As fixed-income markets evolve, Debt Portfolio Management Services (PMS) are becoming a niche but influential choice for affluent investors looking beyond traditional debt funds. With Rs 50 lakh as the minimum investment, these customised strategies—popular among UHNWIs, family offices and corporate treasuries—offer concentrated exposure and active credit calls. According to APMI, 169 debt PMS mandates collectively manage ₹40,351 crore, largely invested across 5–25 NBFC-heavy securities. Advertisement

Debt PMS portfolios typically comprise 5-25 securities and lean towards instruments issued by non-banking financial companies (NBFCs), ensuring liquidity, transparency and enhanced credit selection.

Unlike mutual funds—bound by sector and issuer exposure limits—debt PMS portfolios typicall