In the Indian market, SEBI does not prescribe a fixed fee scale. Instead, it mandates transparency and fairness. As an investor, you aren’t just looking for the “lowest price”; you are looking for the most efficient engine - one where you only pay a premium when you receive premium results.
Industry Standard: Most traditional PMS houses charge a fixed fee of 2.0% to 2.5% per annum on your average daily AUM. This is effectively a “participation tax”—you pay it whether the market is up 20% or down 20%.
Where Polaris Stands: We have moved to a ₹0 Fixed Management Fee model.
The Logic: We believe that as a high-conviction, discretionary manager, our income should be a derivative of your growth, not a tax on your capital. By eliminating the fixed fee, we remove the “drag” on your compounding during flat or volatile years.
Industry Standard: Performance fees are typically 15% to 20% of the profits generated above a “Hurdle Rate” (usually the inflation rate of 7%). This ensures the manager only gets a bonus after delivering a reasonable base return.
Where Polaris Stands: Our Polaris engine operates with a high-conviction hurdle to ensure we only participate in “True Alpha.”
Fact Check: Under SEBI’s 2020 regulations (and the 2025 Master Circular), performance fees must be calculated on a High Water Mark (HWM) basis. This means if your ₹1 Crore portfolio drops to ₹80 Lakhs, we cannot charge a single rupee in performance fees until we first recover your capital back to ₹1 Crore and then cross the hurdle.
Industry Standard: These are the “running costs” of your portfolio—custodian fees, audit fees, and brokerage. SEBI caps these operating expenses (excluding brokerage and taxes) at 0.50% per annum of the client’s AUM.
Where Polaris Stands: As a Macro + Quant Precision PMS, our execution is systematic.
The Edge: While our “Quant” models may result in higher transaction frequency (churn) to capture momentum, SEBI’s recent Ease of Doing Business circulars ensure that brokerage costs are transparently disclosed. We utilize institutional-grade execution to minimize “impact cost,” ensuring that the cost of trading never outweighs the benefit of the trade.
Industry Standard: SEBI has strictly capped exit loads to protect investors from being “locked in” unfairly.
Year 1: Max 3%
Year 2: Max 2%
Year 3: Max 1%
After Year 3: Nil
Where Polaris Stands: We align strictly with SEBI’s tiered exit load caps. However, we design Polaris for investors with a 3-year+ horizon. Our goal isn’t to trap you with fees; it’s to ensure the “Quant Engine” has enough time to navigate through various market regimes and deliver the compounding we’ve engineered for.
When you step into the world of PMS, the first thing you notice is that fees aren’t just numbers, they’re philosophies in disguise.
Most PMS players in the industry tend to follow a familiar rhythm.
A fixed management fee, typically ranging between 1.5% to 2.5% annually, is charged regardless of performance. On top of that, a performance fee of 15%–25% often kicks in once returns cross a basic hurdle rate. The structure is predictable, but it quietly leans toward guaranteed earnings for the manager, not necessarily aligned outcomes for the investor.
Now contrast that with Polaris.
Instead of anchoring heavily on fixed fees, Polaris tilts the equation toward performance. The fixed fee is relatively lower, designed to reduce the drag on your capital during flat or volatile markets. The real upside for the manager comes only when you see meaningful gains.
More importantly, Polaris structures its performance fee with stricter conditions. It typically incorporates higher hurdle expectations and more investor-friendly mechanics, ensuring that fees are earned on true outperformance, not just market movement.
Here’s where the difference sharpens:
In the industry, you often pay for participation.
With Polaris, you pay for differentiation.
Another subtle but critical distinction lies in how returns are evaluated. Many PMS providers calculate performance fees on shorter cycles, which can sometimes reward temporary spikes. Polaris, on the other hand, emphasizes sustained performance, aligning incentives with long-term wealth creation rather than short-term wins.
If the industry model is like a subscription, steady, predictable, and always on,
Polaris behaves more like a partnership, where rewards are meaningfully tied to results. In investing, that difference compounds just as much as returns do.
When you pay a 2.5% fixed fee, your manager is “comfortable” even if your portfolio is stagnant. When you invest in a model like Polaris, the manager only wins when you win big.
In the high-speed, data-driven market of 2026, the Polaris PMS isn’t just another investment product; it’s a partnership in performance. We’ve eliminated the fixed barriers so that your capital can focus on one thing: Compounding.
Investor Note: Always refer to your specific Disclosure Document and Client Agreement for the exact fee schedule applicable to your mandate. SEBI registration (INP000009816) ensures that these disclosures are audited and transparent.
Verified & Fact-Checked against:
SEBI (Portfolio Managers) Regulations, 2020 (Amended 2025).
SEBI Master Circular for Portfolio Managers (July 16, 2025).
NISM-Series-XXI-B: Portfolio Managers Certification Workbook (Sep 2025).
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