PMS Strategies Losing Investor Trust: What Triggered the Outflows?

In a thriving wealth management market, net inflows indicate optimism — but net outflows are a red flag no serious investor can ignore. Are PMS Strategies Losing Investor Trust? What has triggered the outflows? We will learn more in this article.

The industry of portfolio management companies in india grew by 20% in AUM and 27% in clients over the past year, according to SEBI’s February 2025 report. Yet not every fund manager is riding this wave. A deeper dive into SEBI’s PMS data reveals several well-known strategies have seen significant capital outflows, raising serious questions about performance, portfolio strategy, and investor confidence.

This article examines the PMS strategies that lost the most money in FY 2024–25. For finance enthusiasts and HNIs managing ₹50 lakh+ portfolios, it’s a vital read to understand where and why confidence is eroding — and how to avoid similar missteps.

PMS Strategies with the Highest Outflows (Feb 2025)

Rank	Strategy	PMS Provider	FYTD Net Outflows (₹ Cr)	FYTD AUM Growth (%)	1-Year Return
1	ASK Indian Entrepreneur Portfolio	ASK Investment Managers	-₹5,501 Cr	-33%	-1%
2	White Oak India Pioneers Equity	White Oak Capital	-₹2,172 Cr	-30%	2%
3	CCP	Marcellus Investment Managers	-₹2,018 Cr	-40%	-1%
4	ASK India Select Portfolio	ASK Investment Managers	-₹866 Cr	-38%	-9%
5	Enam India Diversified Equity	Enam AMC	-₹264 Cr	-10%	-4%

Source: SEBI PMS Trends – March 2025

Can you see why PMS Strategies Losing Investor Trust?

While most PMS firms saw steady growth, these strategies lost investor trust and capital, despite being run by highly respected institutions.

What Triggered the Outflows?

1. Underperformance vs Benchmarks

Investors expect PMS strategies to beat the market. Many of the above schemes failed to deliver even average Nifty 500 returns (~13% over the last 12 months).

ASK India Select Portfolio: -9% 1Y return
Marcellus CCP: -1% despite a high brand value

When PMS strategies fail to beat mutual fund returns, HNIs quickly reallocate their capital.

2. High Fees, Low Alpha

Many traditional PMS houses continue to charge fixed management fees (1-2% of AUM) regardless of performance. That’s unsustainable when the returns are negative.

By contrast, platforms like Dezerv offer performance-linked fee models, where investors only pay when they earn, creating alignment and trust.

3. Stale or Concentrated Strategies

Some PMS funds have highly concentrated portfolios or static models. In volatile markets, this hurts performance. For example:

Marcellus CCP maintains a long-term buy-and-hold approach, which lagged during market rotations.
ASK’s portfolios have struggled to adapt to emerging sector trends, leading to capital erosion.

4. Lack of Communication

HNIs today expect real-time transparency, mobile updates, and detailed manager insights. Old-school PMS platforms that don’t provide digital interfaces or monthly reports see lower client engagement and higher churn.

By contrast, Dezerv offers tech-enabled dashboards, risk tracking, and portfolio commentary, making it easier for investors to stay informed and committed.

AUM Losses by PMS Provider

Some providers faced multiple outflows across strategies:

PMS House	Strategy	FYTD Outflow (₹ Cr)
ASK Investment Managers	Indian Entrepreneur + India Select	-₹6,367 Cr
White Oak Capital	Pioneers + India Select Equity	-₹2,233 Cr
Marcellus Investment Managers	CCP	-₹2,018 Cr

These numbers suggest not just a strategy-level exit but a firm-wide dip in investor confidence. Some reasons why PMS Strategies Losing Investor Trust.

Lessons for HNIs from PMS Outflows

1. Don’t Overcommit to Star Brands

Even marquee names can underperform. Always diversify across themes and strategies — not just brands.

2. Prioritize Transparent Fee Models

Platforms like Dezerv offer zero fixed fees — you pay only when returns are delivered. This is investor-friendly and performance-aligned.

3. Monitor Alpha, Not Just Returns

A 10% return sounds good until you realize the Nifty returned 15%. Always evaluate performance vs benchmark.

4. Demand Digital Access

Choose PMS platforms that give you:

Real-time performance updates
Monthly insights
Portfolio overlap analysis
Exit/entry strategy notes

Dezerv, for example, combines tech-first reporting with human investment advice — perfect for digital-first HNIs.

How Dezerv Avoids the Pitfalls Others Fall Into?

Here’s why Dezerv is thriving while others lose investor trust:

Feature	Dezerv	Underperforming PMS
Fee Model	Performance-linked	Fixed 1–2%
Portfolio Customization	Yes	Limited
Real-Time Reporting	Yes (mobile app)	Often missing
Strategy Flexibility	Equity + Debt PMS	Mostly equity
FYTD Inflows	₹2,221 Cr (Equity Revival)	Net outflows

Dezerv’s 140% AUM growth and positive alpha stand in sharp contrast to firms like ASK (-33% AUM drop) or Marcellus (-40%).

What Should You Do If Your PMS Is Losing Capital?

Evaluate 3-Year Performance

One-year underperformance might be excusable. Consistent poor returns over 3 years? Time to consider switching.

Talk to the Fund Manager

If your PMS provider isn’t giving updates or rationale for performance — that’s a red flag.

Compare with Peers

Use tools like PMSBazaar to compare your current PMS with other top strategies.

Explore Alternatives

If you’re locked into fixed-fee PMS that underperforms, consider switching to newer models like Dezerv — where performance and fees go hand in hand.

What’s Next for PMS in 2025?

As investors become more performance-conscious, expect:

Greater migration to performance-linked PMS
Preference for transparent, tech-first platforms
Focus on managers with multi-strategy flexibility

PMS is no longer a “buy and forget” space. The modern HNI demands insight, value, and alignment.

Conclusion

In a world where capital is more informed than ever, PMS strategies that underdeliver will be punished. Outflows are not just numbers — they’re signals of fading trust.

If you’re evaluating PMS options, learn from the 2025 exits and look for platforms that offer:

Clear reporting
Strategy innovation
Performance alignment

Dezerv, with its performance-linked fees, rising inflows, and forward-thinking model, is proving that PMS can be transparent, tech-enabled, and trustworthy — a combination today’s investors deserve.

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