Path to Wealth Creation: Timeline To Initiate a PMS Account in India

by Alina Khan

Published On Dec. 20, 2023

In this article

In the pursuit of optimizing wealth management strategies, high-net-worth individuals (HNIs) in India are increasingly turning to Portfolio Management Services (PMS). As investors explore the benefits of professional fund management, a common question arises: How long does it take to start a PMS account? In this article, we will guide you through the process, shedding light on the various stages and timelines involved in initiating a PMS account.

The Regulatory Landscape:

Before delving into the timelines, it is essential to understand the regulatory framework that governs PMS accounts in India. The Securities and Exchange Board of India (SEBI) plays a pivotal role in overseeing and regulating PMS providers. SEBI's guidelines ensure investor protection, transparency, and compliance within the PMS industry.

Read this article to learn more about Portfolio Management vs Wealth Management: The Key Differences

Timelines for Initiating a PMS Account:

  1. Selection of PMS Provider:

The first step in the process is selecting a PMS provider that aligns with your investment goals, risk tolerance, and financial objectives. This phase is primarily driven by the investor's due diligence and may take varying amounts of time based on individual research and consultations.

On average, investors in India spend 2-4 weeks researching and selecting a PMS provider, considering factors such as historical performance, fees, and the reputation of fund managers.

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  1. Account Opening Documentation:

Once a PMS provider is chosen, the investor needs to complete the necessary documentation for opening the PMS account. This typically involves submitting Know Your Customer (KYC) documents, including identity proof, address proof, and income proof. You can start PMS onboarding with Wright Research directly online.

Example: A valid passport, Aadhaar card, and recent utility bills are commonly accepted as KYC documents. The process of collecting and submitting these documents can take 1-2 weeks, depending on the efficiency of document processing by the investor and the PMS provider.

  1. Risk Profiling and Portfolio Customization:

PMS providers assess the risk profile of investors to tailor the portfolio according to their risk appetite and investment preferences. This step involves discussions with the investor to understand their financial goals, time horizon, and risk tolerance.

On average, the risk profiling and portfolio customization phase takes 1-2 weeks, during which PMS providers engage in detailed consultations with investors to create a personalized investment strategy. Digital first PMS advisors such as Wright Research are able to expedite the process and investors can decide PMS portfolio customization based on their risk profiling within 1-2 days.

  1. Funding the PMS Account:

Once the documentation and risk profiling are complete, investors need to transfer funds to their PMS account. The time taken for this step depends on the mode of fund transfer and the efficiency of the financial institutions involved.

Example: Electronic fund transfers may take 1-2 business days, while check deposits may take longer. Some PMS providers offer online payment gateways, expediting the funding process.

  1. Portfolio Allocation and Commencement of Services:

The PMS provider allocates the investor's funds across the chosen securities, marking the commencement of portfolio management services.

Example: The portfolio allocation process can be completed within 1-2 weeks, during which the PMS provider strategically deploys funds based on the agreed-upon investment strategy.

Complete Guide on How to Choose the Best Portfolio Management Services for Your Investments

Summing Up

Initiating a Portfolio Management Services (PMS) account in India is a multi-step process that involves careful consideration, documentation, regulatory scrutiny, and collaboration with a PMS provider. While the timelines can vary based on individual factors and the efficiency of the involved parties, understanding the key stages outlined in this article provides investors with a roadmap for navigating the path to wealth through Portfolio Management Services. As the demand for personalized and professional wealth management solutions continues to rise, the streamlined processes and regulatory oversight contribute to the credibility and attractiveness of PMS as a viable investment avenue for HNIs.

Want to learn more about PMS? Here are some interesting articles related to Portfolio Management Services in India:

  1. What is Portfolio Management Service - Types and Benefits

  2. What is the Minimum Investment Ticket Size for Portfolio Management Services (PMS)?

  3. Complete Guide to Factor Investing & the Wright Factor Fund PMS

  4. Fee Structure for the Wright Portfolio Management Service

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