At Xylem, we neither claim nor possess the ability to time the absolute top or bottom of the market. That kind of precision belongs more to fortune tellers than to investors. What we do believe in, with conviction, is understanding where we are in the cycle and responding with clarity and discipline. Right now, several signs suggest it is time to play defense more than offense What the Market Is Telling Us Beyond the growth numbers and valuation multiples, there are several soft signals beginning to show up. We have seen these before in past cycles, and their recurrence is telling: * A steady increase in promoter selling , even in companies that appear to have no immediate capital needs * A noticeable rush of IPOs , many from businesses still building their long-term credibility * Rising retail leverage , with margin books expanding * Growing retail interest in unlisted equities , often driven more by narrative than underlying fundamentals * TINA Factor - There is no alternative to equities Individually, none of these are red flags. But taken together, they indicate late-cycle behavior. A phase when optimism starts crowding out caution. What We Are Doing We believe the market is currently in a time correction phase . Prices may stay elevated, but progress beneath the surface is uneven. Valuations tend to reset not through steep falls, but through a period of sideways movement and moderation. Historically, this is the phase during which new bull market leaders quietly take shape We are gradually aligning our portfolio toward businesses that exhibit: * A fresh earnings cycle , not yet priced in * Visible promoter confidence , reflected through active buying * Low institutional ownership , which offers room for long-term re-rating These opportunities are not widespread. But our research is beginning to uncover them. This is not a time for hyperactivity, but for clarity. Not a time to react, but to position. What Should Investors Do There is a way to participate in bull markets, and a way to navigate bear phases. Both require different skill sets. We have experience playing both sides of the cycle. We do not rely on prediction. We rely on preparation. It is wishful to think that anyone can invest precisely at the bottom. Only two kinds of people manage to do that gods and liars. For the rest of us, the best way to navigate this phase is by being highly selective and preparing portfolios with businesses that can potentially lead the next cycle. Trust that we are spending our time where it matters most. Studying signals. Validating them through deep research. Stress-testing our theses. And preparing for the next up cycle with intention. If you'd like to discuss your portfolio or explore how Xylem can help you navigate this market, consult with us here .

India’s fintech story is nothing short of a revolution. Over the last decade, technology has completely reshaped how people manage money, pay bills, borrow, and invest — all from the convenience of their smartphones. Fintech, which simply means financial technology, is bringing financial services to millions who were previously left out of the traditional banking system. What’s driving this boom? A few key things: India has a massive population that’s young and tech-savvy, smartphone usage is skyrocketing, and internet connectivity is spreading fast, even in smaller towns. Plus, government initiatives like Digital India and the launch of UPI (Unified Payments Interface) have created a fertile ground for digital payments and other fintech innovations to thrive. Right now, India’s fintech market is estimated to be worth around $130 billion and is growing rapidly — at more than 20% per year. Payments lead the charge, making up about half of the market, thanks to apps like PhonePe, Paytm, and MobiKwik that have made sending money, paying merchants, and splitting bills easier than ever. Lending platforms, insurance tech, and investment apps are also picking up steam, offering more options beyond just payments. Investors have noticed this surge too, pumping billions of dollars into fintech startups, fueling innovation and competition. The result? More choices, better convenience, and financial services reaching corners of the country that banks often couldn’t touch before. In short, India’s fintech ecosystem isn’t just growing — it’s transforming the entire financial landscape, making money management simpler, smarter, and more accessible for everyone The Industry Landscape: Digital Payments and Financial Services The digital payments and financial services industry in India sits at the crossroads of technology, finance, and mass consumer adoption. At its core, this sector includes platforms that enable everything from instant peer-to-peer transfers and merchant payments to utility bill settlements, mobile recharges, and digital lending—often within a unified app experience. These companies fall within the broader fintech ecosystem , specifically in the digital payments and tech-enabled financial services verticals. What began as wallet-based payment systems has matured into full-fledged financial platforms offering services like UPI payments, credit access, insurance, and mutual funds. The underlying infrastructure blends payment processing capabilities with data-driven personalization, making financial services more intuitive, inclusive, and accessible. Given the zero-MDR nature of certain services like UPI, monetization is achieved through a combination of prepaid instruments , payment gateway commissions , embedded credit , and cross-selling of financial products. Their business models are highly volume-driven, relying on deep user engagement, layered services, and ecosystem lock-in to drive profitability. This industry is a critical enabler of India’s digital economy, bringing millions into formal finance and fundamentally redefining how the average consumer interacts with money—securely, instantly, and often invisibly. Let’s now unpack the business models powering these fintech giants. Though digital payment apps feel “free” to users, they earn through multiple revenue streams. Primarily, they charge small commissions on transactions like bill payments, recharges, and wallet purchases, plus Merchant Discount Rates (MDR) on merchant payments. They also generate income by offering payment gateway services to businesses. A large part of their revenue comes from credit products such as personal loans and Buy Now Pay Later (BNPL), often in partnership with lenders, earning interest and fees. Additionally, they cross-sell financial products like insurance, mutual funds, and digital gold, earning commissions. Some provide premium services or subscriptions to merchants for added features. These layered revenue models rely on high user volumes and engagement to drive profitability.    Let’s stack up the three giants redefining digital finance today. Now, let’s break down how these three fintech giants stack up. ●    PhonePe  leads in UPI transactions and merchant integrations, with a growing focus on insurance and mutual funds. ●    Paytm  offers a super-app experience, combining payments, lending, wealth, and commerce under one ecosystem. ●    MobiKwik  focuses on wallet-first users and drives monetization through credit products like ZIP EMI and Pocket UPI. Now, let’s compare the topline performance of these three fintech giants. While growth is strong, razor-thin margins and high customer acquisition costs remain the biggest challenges to fintech profitability. (PhonePe’s FY25 data was not available at the time of writing, FY24 figures have been used for   comparison.) Now, let’s dive into a comparison of key performance metrics across all three competitors. (Certain Data is based on an Industry Estimate) Conclusion: The Fintech Frontier Is Just Getting Started India’s fintech revolution has come a long way — from digital wallets to UPI dominance, and now to credit-backed innovations like Pocket UPI and embedded finance. As giants like PhonePe, Paytm, and MobiKwik battle for market share, the next phase will be defined by sustainable monetization, regulatory adaptability, and deeper financial inclusion. While the road ahead is competitive and complex, one thing is clear: fintech isn’t just changing how money moves — it’s rewriting the rules of financial access in India. With evolving user behavior, increased adoption beyond Tier 1 cities, and a sharp investor focus on profitability, the Indian fintech playbook is still being written — and the winners will be those who can scale responsibly, monetize smartly, and serve inclusively. If you'd like to discuss your portfolio or explore how Xylem can help you navigate this market, consult with us here .

Liquidity is the lifeblood of the stock market- when it's abundant, markets thrive; when it dries up, panic sets in. This blog explores how retail activity, mutual fund cash positions, promoter selling, block deals, and major IPOs all signal the current liquidity crunch in Indian equities. Through data, metaphors, and market insights, we understand why the “well” feels dry and what that means for the road ahead. Markets and Liquidity Think of the stock market as an ancient, massive well. The availability of money (liquidity) is the water in it. The important consideration to be made over here is that the markets  are green and good only till the water is adequate. As long as the well is thriving with water, valuations are great, the flow of trades is seamless and the investor’s confidence is at an all time high.  The water does recede, eventually. It floods upon the euphoria and the sentiments crash. Prices sink, volumes dry up, confidence bottoms out and suddenly the valuations do not seem alright. The fear realises, a sense of foreboding builds, and the once star-studded stock market, now seems to be another scheme. We then enter the bear phase.   Liquidity Simplified For starters, liquidity  can be defined as the ease with which an asset, or security, can be converted into ready cash without affecting its market price. In simple terms, the free flow of funds, the availability of cash  is synonymous with liquidity. We already tagged the stock market as a huge well and the water in it as liquidity. For the sake of simplified understanding, here are a few more metaphors: Retail Investors:  They are like the monsoon rain, steadily filling the well up with direct investments or through SIPs. The moment fear sets in, they withdraw their water. Source: Xylem Investments Research   The above chart shows the gradual fall in trade activity of retail investors. In July’24 the activity peaked at  12,00,00,000 trades and then gradually kept on falling at Jun’25 all time low activity of 5,00,00,000 trades. Panic set in post the Sep’24 correction. Retailers abate market exposure in a corrective environment and this is evidently seen in the above BSE data. Lesser the frequency of rains, poorer the adequacy of liquidity. Source: Xylem Investments Research   As we navigate through the data above, we realise the number of new SIP registrations month on month saw a dip. At a peak of 73,00,000 new registrations in July’24, this number eroded eventually down to mere 49,00,000 by Nov’24. By Jan’25 we see an increase in SIP cancellations as compared to new registers. The cancellations widened, peaking out at 162 in April’25. This worsens the rainfalls, therefore the liquidity. Institutions and Mutual Funds: They are the massive reservoirs or dams. They invest on behalf of retail investors. They can flourish the well if they deploy cash and at the same time leave it barren by withdrawing.  Source: Xylem Investments Research   This data from Apr’2025 makes it pretty clear that the phase we are in is a classic poor-liquidity one. Mutual Funds are holding back a big chunk of their AUM as cash. Typically in a one-way upward market, the cash positions tend to be close to nothing. As sentiments become fragile, these giants pull-back and sit on a pile of cash, waiting for the next upcycle. (A) Promoter Selling: Think of them as the farmers. They sell massive stakes to fill their buckets. This causes over-supply of shares in the market. A retailer would question himself, “The promoter himself has sold a part. Is it a bad time to be invested?”. (B)Bulk & Block deals:  These are a classic example of underground cracks and crevices in the well, far from the retailer's sight. Often missed, they move huge volumes of shares from institutions to institutions. Gradually, they empty the wells. Source: Xylem Investments Research   These are the major block and bulk deals between July’24 and Sep’24.  Source: Xylem Investments Research These are the major block and bulk deals in the last 2 months. Block deals are a critical indicator of liquidity stress and market sentiment. In Sep '24, the market was still buoyant with strong institutional participation and high risk appetite. Large promoter sales like GE T&D India’s 11.7% OFS were easily absorbed, reflecting a healthy system flush with liquidity. But fast forward to Jun’25, the landscape has shifted. In just two weeks, over ₹40,000 crore worth of promoter, PE, and VC selling has hit the market. High-profile exits like Bajaj Finserv’s ₹5,800 crore block deal, Dixon Technologies' ₹2,221 crore sale, and Suzlon Energy's promoter offload are examples where large supply tested the market’s capacity. Unlike before, demand has thinned. Retail participation is stretched, and institutional flows are selective. As a result, block deals are now leading to price overhang and breakdowns, especially in mid- and small-cap names. When supply overwhelms demand, even fundamentally strong stocks correct not because of poor performance, but because the market cannot absorb the volume.    Some of the recent block deals over the course of May and June are:  Source: Xylem Investments Research IPOs : Capital is scarce. A massive IPO of a country-favourite company diverts money to it. This erodes the liquidity further. It acts like a lucrative, quick money making opportunity and causes divergence. Think of them as an alternate opportunity to pool the water into.  Source: Xylem Investments Research   Source: Xylem Investments Research Massive IPOs like that of Zepto, SBI mutual fund, Phone Pe, Tata Capital,  LG Electric, NSDL, NSE, Cardekho, Meesho are all lined up, not sure when, but for sure will draw a lot of liquidity towards them. For context, a chunky IPO like that of Hyundai back in October, or that of HDB coming up in July could suck massive liquidity. This means that 7.6% of the total cash ( ₹ 1,65,000 crore) held by the MF could be swept off, just by HDB’s IPO. SOURCE: Xylem Investments Research Final Note To conclude, we are low on liquidity. Retailers are afraid to stay invested, block deals are in multitude, mutual funds and portfolio managers are on huge piles of cash. There is no emergence of a clear leading industry. We hear of a war and the defence stocks rally. As of 23rd June, post the ceasefire announcement, defence stocks tumbled. Somedays, it is railway, then real estate, then banks and then there are corrections. This is a major reason why we are where we were back in Sep '24. The well is drained of water. But this shall pass too. Indian markets have shown resilience and with mitigation of the global tensions & markets, the stock markets will be all set to grow, once again.   If you'd like to discuss your portfolio or explore how Xylem can help you navigate this market, consult with us here .

A Look at How Portfolio Management Services Have Performed and What It Means for Investors As HNIs increasingly seek more personalized and performance-driven investment avenues, Portfolio Management Services (PMS)  have grown in both size and sophistication. With market volatility, sectoral shifts, and evolving macro trends shaping equity performance, it’s important to assess how PMS strategies have actually delivered—especially compared to traditional vehicles like mutual funds. This article breaks down PMS performance trends in FY 2024–25 , what’s driving returns, and what investors should take away. PMS Industry Snapshot: Where We Stand in 2025 As of early 2025, there are over 400+ registered PMS providers  in India, managing ₹5.5+ lakh crore in assets Sectors driving PMS alpha: manufacturing, PSU banks, capex beneficiaries, mid-cap pharma, energy PMS strategies have seen inflows rise 30% YoY  in FY24 as HNIs diversify from mutual funds and direct equities PMS Performance vs Benchmarks According to data from SEBI and PMS aggregators: Strategy Type 1-Year Returns (FY24–25) 3-Year CAGR Multicap PMS 27% 21% Midcap PMS 32% 24% Large Cap PMS 18% 15% Thematic (PSU/Infra) 40–45% 26%+ Compare this with: Nifty 50 TRI : ~21% (1-year return) Nifty Midcap 150 TRI : ~36% (1-year return) 👉 Over 65% of PMS strategies outperformed their benchmark indices  in FY24, especially those with concentrated exposure to midcaps and cyclical themes. Key Trends Driving PMS Returns 1. Focused Portfolios Outperforming Most high-performing PMS providers maintained 20–25 stock portfolios , allowing higher conviction and better tracking of emerging trends. 2. Bottom-Up Stock Picking Unlike index-heavy mutual funds, successful PMS managers used a fundamental, bottom-up approach —focusing on company-level drivers instead of sector bets alone. 3. Higher Allocation to Mid & Small Caps PMS strategies with >40% allocation to mid and small caps  gained handsomely from the broad-based market rally post-2023. 4. Cyclical Sector Exposure PMS strategies betting early on defence, manufacturing, and infra  themes generated excess alpha over standard diversified equity funds. Volatility Remains a Factor Despite outperformance, PMS strategies also showed higher short-term volatility  compared to mutual funds due to concentrated holdings. 3-month drawdowns  in some high-beta strategies ranged between 8-12% High conviction also means higher exposure to downside if themes reverse This makes risk-adjusted return  an equally important measure-not just raw returns. Fees & Hurdles: Impact on Net Returns Most PMS providers charge a fixed fee (1-2%)  and/or performance fee  beyond a hurdle rate (typically 10-12%) In FY24, some strategies with gross returns of ~30% delivered net returns of 24-26%  after fees and taxes Always compare post-fee returns  when evaluating PMS managers. How Xylem Investments Positioned for FY26 and Beyond At Xylem Investments , our Xylem Maverick Strategy  continues to focus on: High-quality businesses  with earnings resilience and scalable growth Reasonable valuations , avoiding euphoric themes and momentum traps A low-churn approach  to minimize taxes and transaction costs Consistent outperformance with capital protection , not just raw alpha We believe in real, risk-adjusted compounding -not just chasing short-term spikes. Final Thoughts: What Investors Should Do Review your PMS provider’s performance net of fees and taxes Compare across timeframes (1Y, 3Y CAGR, drawdowns) Focus on consistency, downside protection , and transparency Evaluate whether your PMS strategy aligns with your risk profile and financial goals 👉 Book a portfolio review  with our team to understand whether your PMS strategy is working hard enough for you.

A Simple Guide to Understanding How Taxes Work in Portfolio Management Services (PMS) For High Net Worth Individuals (HNIs) investing through Portfolio Management Services (PMS) , returns are often more promising than traditional mutual funds - but so are the responsibilities. One of the key areas that many investors find confusing is taxation . Unlike mutual funds, PMS investors are taxed directly since they own the underlying securities in their name. In this article, we’ll break down how PMS taxation works, what you should plan for, and how to manage your tax liabilities smartly. How is PMS Structured? Unlike mutual funds where you hold units of a pooled portfolio, PMS invests directly in equities or other assets in your demat account . This means: You are the legal owner  of the shares You are liable for direct tax implications  on capital gains, dividends, and other earnings Types of Taxes Applicable in PMS 1. Capital Gains Tax Since you own stocks directly, capital gains taxes apply to each transaction  the portfolio manager executes on your behalf. Type of Gain Holding Period Tax Rate Short-Term Capital Gains (STCG) Held ≤ 12 months 15% Long-Term Capital Gains (LTCG) Held > 12 months 10% (above ₹1 lakh gains/year) 2. Dividend Taxation Dividends received through your PMS are added to your income  and taxed as per your income tax slab . There is no separate DDT (Dividend Distribution Tax)  anymore (since Budget 2020), so PMS clients in higher tax slabs (30%+) could face heavier dividend tax than mutual fund investors used to. 3. Securities Transaction Tax (STT) STT is automatically deducted  when your PMS provider buys/sells listed securities. This is reflected in your contract notes and doesn't need to be paid separately. PMS vs Mutual Fund Taxation Feature PMS Mutual Fund Tax Filing Done by investor Done by AMC Capital Gains On every trade On redemption Loss Set-Off Yes Yes Dividend Tax Taxed at slab rate Taxed at slab rate How Xylem Investments Supports Tax Efficiency At Xylem Investments, our Xylem Maverick PMS  strategy is built not only for long-term capital growth but also for tax efficiency . We aim to: Avoid unnecessary churn that triggers short-term taxes Use tax harvesting where appropriate Provide detailed and timely tax statements 📞 Final Thoughts: Plan Early, File Smart PMS offers tremendous benefits to HNIs—but tax planning must go hand-in-hand with portfolio management . Work with a PMS provider that gives you transparent, easy-to-understand tax reports, and consult your tax advisor regularly. 👉 Talk to us  to understand how our PMS strategy balances risk, returns, and taxation effectively.

When it comes to managing your wealth, investors today are spoilt for choice. Among the most widely considered options are Portfolio Management Services (PMS)  and Mutual Funds . While both aim to grow your money, the two differ significantly in terms of structure, flexibility, customization, and suitability for high-net-worth individuals (HNIs). In this article, we break down the key differences between PMS and Mutual Funds to help you make an informed decision. What is a Mutual Fund? A Mutual Fund  pools money from several investors to invest in stocks, bonds, or other securities. It is managed by professional fund managers and regulated by SEBI. Key Features: Open to all investors (retail or HNI) Lower minimum investment (₹500–₹5,000) Diversified portfolios with predefined mandates Suitable for passive investors What is PMS (Portfolio Management Services)? PMS  is a more tailored investment approach, where a portfolio is managed on behalf of an individual, often with custom strategies. It is regulated by SEBI and primarily designed for HNIs . Key Features: Minimum investment: ₹50 lakh Direct ownership of stocks in your demat account Higher degree of customization and flexibility Managed by a dedicated portfolio manager Key Differences: PMS vs Mutual Funds Feature Mutual Funds PMS Minimum Investment ₹500 – ₹5,000 ₹50 lakh (SEBI mandated) Ownership Units of a pooled fund Direct stocks held in your name Customization None (fixed mandate) High (personalized strategy possible) Transparency NAV disclosed daily Stock-wise performance available Taxation Fund-level tax Investor files capital gains directly Fees Fixed (1–2%) + exit loads Fixed and/or performance-linked fees Suitability Retail investors HNIs seeking personalized wealth management Which One Should You Choose? Choose Mutual Funds  if: You’re just starting your investment journey You prefer a hands-off approach You seek low-cost, diversified options Choose PMS  if: You are an HNI looking to invest ₹50 lakh or more You value customized strategies , risk control , and portfolio-level transparency You want direct access to the fund manager's thought process How Xylem Investments Helps You Decide At Xylem Investments , we offer a SEBI-registered PMS called the Xylem Maverick Strategy —designed for long-term capital appreciation by investing in fundamentally strong businesses with multibagger potential. What sets us apart: A research-intensive, bottom-up stock selection process Emphasis on capital preservation alongside growth A transparent reporting and communication framework 📞 Ready to Take the Next Step? If you're an investor with ₹50 lakh+ looking for a personalized, actively managed investment solution, a PMS might be the right fit for you. 👉 Learn more about our PMS offering  or Contact us for a consultation .

In today’s rapidly evolving financial world, wealth management is no longer a luxury reserved for ultra-high-net-worth individuals. It’s a necessity—for anyone who takes their capital seriously. And among the many tools available, Portfolio Management Services (PMS) has emerged as a powerful investment vehicle not just for the affluent, but for every investor seeking personalization, accountability, and performance. At Xylem PMS, we believe that smart investing isn’t about status—it’s about strategy. Let’s explore how PMS can play a transformative role in your investment journey, regardless of the size of your corpus.   What is PMS and How Does It Affect Your Investing Journey? Portfolio Management Services (PMS) is a customized investment solution offered by SEBI-registered portfolio managers to cater to investors with a minimum threshold of ₹50 lakhs. Unlike mutual funds, PMS portfolios are not pooled; each investor holds a unique portfolio aligned with their financial goals, risk tolerance, and time horizon.   The PMS structure allows for: ·       Customization: Portfolios are tailored to your specific needs. ·       Transparency: You can view each stock or asset held in your name. ·       Professional Expertise: Managed by seasoned portfolio managers backed by research teams. ·       Tax Efficiency: Unlike mutual funds, investors pay tax only when they sell their holdings, offering better control over tax outflows.   In your investing journey, PMS becomes a strategic lever. For busy professionals or seasoned HNIs, PMS offers a hands-off yet high-engagement experience. It not only delegates decision-making to experts but also ensures that the portfolio is continuously rebalanced in line with macroeconomic changes, corporate earnings, and valuation metrics.   Types of PMS and Investor Suitability Broadly, PMS offerings can be classified into Discretionary, Non-Discretionary, and Advisory categories.   1. Discretionary PMS Here, the portfolio manager takes all buy-sell decisions independently. This is best suited for investors who trust the manager’s capability and want a completely hands-free experience. Ideal for: ·       Investors with low involvement or limited market understanding ·       Those seeking professional alpha generation over benchmarks ·       Investors comfortable delegating full control   2. Non-Discretionary PMS In this model, the manager suggests trades, but the final execution happens only after investor approval. Ideal for: ·       Investors with market understanding who wish to retain final control ·       Those preferring a collaborative approach ·       Investors with moderate involvement   3. Advisory PMS This format strictly offers advice and portfolio construction ideas. The onus of execution lies with the investor. Ideal for: ·       DIY investors who need high-quality research and curation ·       Family offices with in-house execution teams ·       High-involvement investors with time and expertise   Choosing PMS Based on Risk Appetite Every investor is different. Risk appetite is often a function of age, financial goals, net worth, income stability, and temperament. ·       Conservative Investors: Prefer capital preservation. Debt-oriented PMS or value-focused equity PMS with low beta stocks are better suited. ·       Moderate Risk Takers: These investors look for balanced growth. Multicap, dividend-yielding strategies or sector-rotation portfolios work well. ·       Aggressive Investors: Those who aim for superior alpha and can stomach volatility. High-conviction, small-cap or thematic PMS strategies are ideal.   The Xylem Way: Deep Research, Disciplined Execution, and Trusted Capital Protection Xylem PMS was born from a single conviction: Long-term wealth creation is not just about identifying multibaggers—it’s about doing it consistently, ethically, and with a deep respect for the trust our clients place in us.   1. Deep Research is Our Bedrock We spend more time saying no to ideas than yes. At Xylem, research is not a one-time activity—it is an ongoing process that starts from screening thousands of companies and ends at a focused portfolio of high-conviction names. Our research approach includes: ·       Bottom-up stock picking with robust on-ground channel checks ·       Earnings quality analysis, not just earnings growth ·       Corporate governance scorecards that eliminate promoters with questionable track records ·       Regular engagements with management, industry experts, and supply chain players We avoid fads and chase fundamentals. 2. Disciplined Execution An idea is only as good as its execution. We follow a rule-based capital allocation and risk management framework:   ·       No overexposure to single names ·       Rebalancing based on fundamental triggers ·       Pre-defined stop-loss or downside mitigation strategies ·       Quarterly re-assessment of investment thesis   Our investment committee reviews every inclusion or exclusion through a second-layer lens to avoid behavioral biases.   3. Utmost Protection of Trusted Capital We understand that this isn’t just money—it’s years of effort, sacrifices, and dreams. Protecting capital is non-negotiable for us. ·       We avoid leverage. ·       We minimize exposure to untested business models. ·       We don’t chase momentum for the sake of performance. ·       Our drawdown control strategy focuses on absolute returns and capital preservation.   We believe wealth preservation is as critical as wealth creation, especially in volatile macro environments.   The Bottom Line: PMS is Not a Luxury—It's a Smarter Way to Invest For too long, Portfolio Management Services have been seen as the preserve of the ultra-rich. But that perception is shifting—and rightly so. In a world where information is abundant but insight is rare, PMS stands out as a solution that combines personalization, discipline, and expertise.   Whether you’re looking for: ·       Greater transparency ·       Personalized strategies ·       Risk-adjusted alpha ·       Accountability in decision-making -PMS can be a valuable part of your wealth journey.   At Xylem, we offer one such approach—but more importantly, we urge you to explore PMS as a category. Because at the end of the day, the true question isn’t "Do I have enough wealth for PMS?" It is "Isn’t it time my wealth was managed with the care and clarity it deserves?"

As more High Net Worth Individuals (HNIs) move beyond mutual funds into Portfolio Management Services (PMS) , one of the first decisions investors face is choosing between Discretionary  and Non-Discretionary  PMS. Both models offer professional management, but they differ significantly in terms of control, flexibility, and investment execution. In this post, we’ll break down the differences, advantages of each, and why we at Xylem Investments  have chosen to offer a Discretionary PMS  model. What is Discretionary PMS? In a Discretionary PMS , the portfolio manager takes full responsibility  for investment decisions. Once the investment mandate and risk profile are agreed upon, the manager executes all buy/sell decisions without requiring approval for every transaction. ✅ Manager has autonomy  to act swiftly ✅ Aligned with the strategy and objectives defined at onboarding ✅ No operational delays due to investor intervention At Xylem, we believe this is the most efficient way to generate long-term alpha. What is Non-Discretionary PMS? In a Non-Discretionary PMS , the manager provides advice and suggestions , but the investor must approve each trade  before it is executed. ✅ More control for the investor ✅ Suitable for those with strong market knowledge or preferences ❌ Slower execution, which can result in missed opportunities ❌ Operationally more intensive for both investor and manager Key Differences at a Glance Feature Discretionary PMS Non-Discretionary PMS Execution Done by manager Requires investor approval Speed Fast and efficient Slower due to communication Investor Involvement Low High Flexibility Manager-driven Investor-controlled Best For HNIs seeking hands-off, professional management Investors wanting control and involvement Why We Believe in Discretionary PMS At Xylem Investments , we operate a Discretionary PMS  through our Xylem Maverick Strategy , for the following reasons: 1. Faster Decision-Making in Dynamic Markets Markets don’t wait. A discretionary structure allows us to act quickly  on opportunities or manage risk without delays. 2. Focus on Strategy, Not Emotions Many investors tend to buy late and sell early . Discretionary management removes emotion-driven decisions and sticks to a disciplined, research-led framework. 3. More Scalable and Consistent Execution Discretionary PMS lets us maintain uniform portfolios across investors  and optimize at the portfolio level rather than in fragmented ways. 4. Lower Operational Friction No back-and-forth on every trade. This makes the experience smoother for both the investor and the fund manager. Common Misconceptions About Discretionary PMS “Will I lose control over my money?” No. Your funds and securities are held in your own demat and bank account . You have full visibility and ownership. “What if I disagree with the manager’s calls?” The manager follows a predefined investment strategy and mandate agreed at the start. Regular performance reviews and transparent reporting help build accountability. Final Thoughts Choosing between Discretionary and Non-Discretionary PMS depends on your: Risk appetite Market understanding Time and involvement preference Trust in the manager’s capability If you’re someone who values expertise, consistency, and hassle-free investing , Discretionary PMS  may be ideal for you, especially when it’s run by a team deeply aligned with your interests. 👉 Book a consultation  with our team at Xylem Investments to explore how our discretionary PMS strategy can work for you.

As part of our work, we review asset allocations across dozens of client portfolios and one pattern is crystal clear. Most investors are significantly under-allocated to equities! Here’s what we typically see: • 60 to 70% in Real Estate • 10 to 20%in Debt • Only 10 to 15% in Equities This creates a serious mismatch between how wealth is compounding and how lifestyle costs are growing. Real estate and debt may offer stability, but are unlikely to deliver more than 4 to 5% annual returns over the next decade. In contrast, lifestyle expenses: education, healthcare, travel etc. are compounding at 12 to 14%! Portfolios today are simply not prepared for this reality. Worse still, many investors continue to treat equity as a seasonal bets, despite it being the only asset class that has promise to deliver >14% compounding over decades. In some cases, equity is the first asset sold to fund second homes or luxury cars. That’s exactly the opposite of what long-term wealth creation demands. Equity is not optional. It is essential. It must be a permanent and growing part of every portfolio. Wealth creation via equities is about Patience, discipline, and consistency; these are the virtues that get inordinately rewarded over time. This is not about chasing short-term returns. It is about preparing for long-term, real-world goals and building intergenerational wealth that outlasts us. What should you do? ✔ Make equity a core allocation ✔ Think in decades, not years ✔ Continue your SIPs and top-ups without pause ✔ Trust your fund manager to navigate the market cycles ✔ Stay patient and let compounding do its magic The greatest gains come quietly, over time. Let equity do its job.