India's top-performing Portfolio Management Services (PMS) fund managers are strategically positioning their portfolios, with significant bets placed on 42 stocks across various sectors. These sectors range from fintech to healthcare, agrochemicals, and industrial companies, reflecting a diversified approach to capture India's next phase of growth.

Key Investment Themes

Several overarching themes drive these investment decisions:

• Digital Disruption: Fund managers are keen on companies leveraging technology to disrupt traditional industries. Fintech giant Paytm is one such example.
• Specialty Chemicals: This sector continues to attract interest due to its growth potential and India's increasing role in the global chemical supply chain.
• Consumption Growth: As India's economy expands, consumer-focused businesses are expected to thrive, making them attractive investment opportunities.

Spotlight on Paytm

Paytm, a leading fintech platform, has seen its stock price surge in 2025. This surge is attributed to several factors, including regulatory approval from the Reserve Bank of India (RBI) and a recent profit turnaround. The RBI granted in-principle approval to Paytm's wholly-owned subsidiary, Paytm Payments Services Ltd, to operate as an online payment aggregator. This move lifted a merchant onboarding ban that had been in place since November 2022, removing a major regulatory hurdle.

In July 2025, Paytm reported a consolidated net profit of Rs 122.5 crore for the first quarter of FY26, a significant improvement from the Rs 839 crore loss a year earlier. Revenue from operations also climbed 28% year-on-year to Rs 1,917 crore during the quarter.

PMS Landscape in India

The Portfolio Management Services (PMS) sector in India has experienced substantial growth, driven by affluent investors seeking personalized wealth solutions. As of Q1 FY25, the total assets under management in the PMS sector reached ₹7.08 lakh crore, expanding at a CAGR of approximately 33% over the past decade.

Top PMS Providers

Some of the top PMS providers in India include:

• Abakkus Asset Management
• ASK Investment Managers
• Marcellus Investment Managers
• SageOne Investment Managers

These firms offer tailored strategies with proven track records, catering to the specific needs and goals of high-net-worth individuals.

Performance and Investment Strategies

PMS funds employ various investment strategies to generate returns. Some focus on large-cap stocks for stability, while others explore mid- and small-cap stocks for higher growth potential. Diversification across market capitalizations is a common theme, with fund managers allocating investments to both large and small-cap stocks to manage risk and enhance returns.

Factors to Consider When Choosing a PMS

Selecting the right PMS requires careful consideration of several factors:

• Investment Strategy: Ensure the PMS's investment approach aligns with your financial goals and risk tolerance.
• Long-Term Performance: Review the PMS's historical performance to assess its ability to generate consistent returns.
• Team Expertise: Evaluate the experience and expertise of the fund management team.
• Transparency: Choose a PMS that provides clear and regular communication about portfolio holdings and performance.