| No PFIC Compliance Issues |
PMS investments involve direct ownership of stocks or assets, avoiding Passive Foreign Investment Company (PFIC) rules and simplifying tax reporting. |
Classified as PFICs under U.S. tax law, leading to higher tax rates (up to 37%) and complex reporting. |
| Personalized Portfolios |
Offers customized portfolios tailored to individual financial goals, risk tolerance, and preferences, including ethical or sectoral considerations. |
Follows a predefined strategy with pooled investments, limiting customization. |
| Greater Transparency |
Provides full visibility as investors hold stocks in their own name, with real-time portfolio performance and transaction history. |
Limited real-time disclosure of portfolio holdings. |
| Flexibility and Control |
Allows direct ownership and management of securities, offering flexibility to exclude specific stocks or industries. |
Standardized approach with minimal scope for customization. |
| Higher Investment Threshold |
Requires a higher minimum investment (e.g., ₹50 lakhs in India), ensuring tailored services for high-net-worth individuals. |
Designed for retail investors with lower investment thresholds and less personalized service. |
| Avoidance of Regulatory Barriers |
Operates on an individual basis, avoiding regulatory hurdles such as FATCA and Canadian securities regulations. |
Many AMCs restrict mutual fund investments for NRIs in the US and Canada due to compliance challenges. |
| Professional Management |
Managed by professional portfolio managers, with direct communication and personalized updates for clients. |
Managed by professionals but lacks direct client interaction or personalized updates. |
