What is a Non-Model Portfolio Approach in PMS?

In today’s volatile markets, investors are increasingly looking for customized strategies rather than one-size-fits-all solutions. This is where the concept of a Non-model portfolio in Portfolio Management Services, or PMS, becomes important.

If you are exploring PMS and wondering how it differs from mutual funds or model-based strategies, understanding the Non-model portfolio approach can help you make a more informed decision.

Let us break it down in simple, practical terms.

What is a Non-Model Portfolio in PMS?

A non-model portfolio is a highly customized investment approach where each investor’s portfolio can differ based on:

• When the investor enters the strategy
• Current market pricing
• Cash availability and deployment timing
• Tactical allocation decisions

Unlike a model portfolio, there is no preset stock basket that is applied uniformly to all investors.

Instead, portfolio managers make decisions in real time for each investor, often tailoring allocation weights and entry levels based on market conditions at the time of investment.

Most PMS Are Model Portfolios - Here’s Why

It is important to note that while the concept of a non-model portfolio is interesting, most PMS offerings in the market today use a model portfolio approach.

In a model portfolio, every investor ideally holds the same set of stocks in similar proportions at the same point in time. This is why model portfolios are more common in PMS.

In contrast, true non-model portfolios tend to be offered by boutique managers or tailored solutions where personalization is critical.

How Does a Non-Model Portfolio Work?

A non-model portfolio is built dynamically. Here’s how it functions in practice:

1. Current Market Prices Matter

   The allocation depends on price levels when you invest, not on a fixed template.

2. Individual Timing

   If you enter the strategy later than another investor, your portfolio might differ because prices have moved.

3. Flexible Allocation

   Based on valuation and risk appetite, the manager can adjust weightings across sectors.

4. Cash Management

   Managers may hold some cash temporarily to buy opportunities when valuations are favourable.

This adaptability can be an advantage in volatile times when prices swing rapidly.

Model Portfolio vs Non-Model Portfolio: What’s the Difference

Feature	Model Portfolio	Non-Model Portfolio
Structure	Same for all investors	Customized per investor
Timing	All investors enter at same stock levels	Entry depends on when you invest
Flexibility	Lower	Higher
Liquidity Deployment	Uniform	Dynamic
Benchmarking	Easier	Comparisons are more complex
Market Relevance	Consistent across clients	Tailored to market conditions

Why Non-Model Portfolios Matter in Volatile Markets

Volatility, like we see in 2026, means prices can diverge quickly across sectors and stocks.

A non-model portfolio allows a manager to:

• Avoid buying expensive stocks at higher prices
• Shift allocations to sectors with attractive valuations
• Use cash selectively to capitalize on downturns
• Adjust exposures based on real-time fundamentals

In contrast, a rigid model may buy the same stocks at the same weights regardless of price action.

This flexibility can help protect capital when markets are uncertain.

Benefits of a Non-Model Portfolio Approach

A non-model portfolio offers:

1. Personalised Execution

Every investor’s portfolio reflects their entry point and timing.

2. Tactical Deployment

Money gets invested based on market valuation rather than a preset formula.

3. Better Risk Management

Managers can reduce exposure to overvalued stocks and increase exposure to underpriced opportunities.

4. Active Decision Making

Professional managers can adapt to fast changing market environments.

When a Non-Model Portfolio May Not Be Ideal

Despite its advantages, this approach may not suit all investors.

Challenges Include

• More complex reporting
• Harder to compare performance with peers
• Not all managers are equally skilled at tactical execution
• Transparency needs to be high to build trust

This is why model portfolios remain dominant in the PMS world today.

Example: Equirus Wealth PMS

One example of a professional PMS offering is Equirus Wealth PMS, which provides differentiated portfolio solutions tailored to investor goals and market conditions.

You can explore their approach here: Equirus Wealth PMS

Equirus Wealth PMS focuses on:

• High quality stock selection
• Long term earnings visibility
• Risk discipline in portfolio construction
• Continuous monitoring of valuations

Whether they choose a model or tailored implementation depends on specific client mandates and risk profiles. Their process prioritises transparency, professional management, and disciplined execution, all crucial in a volatile environment.

Who Should Consider a Non-Model Portfolio

A non-model portfolio may be worth considering if you:

• Want a personalised investment solution
• Are comfortable with active management
• Prefer exposure tailored to your entry timing
• Appreciate flexibility in allocation
• Are a seasoned or high-net-worth investor

If your preference is uniformity, predictability, and easier comparison, a model portfolio PMS may be more suitable.

Conclusion

The non-model portfolio approach in PMS offers flexibility, dynamic allocation, and personalised execution, which can be especially valuable in uncertain markets like 2026. However, most portfolio management services today rely on model portfolios because of consistency, scalability, and easier benchmarking.

For investors seeking tailored execution and a tactical edge, non-model portfolios can be powerful, provided the portfolio manager has the experience, discipline, and process to deliver under different market conditions.

Equirus Wealth PMS is an example of a provider offering professional PMS solutions that can be aligned with your investment goals while maintaining strong governance and risk discipline.

FAQs on Non-Model Portfolio in PMS

1. What is a non-model portfolio in PMS?

A non-model portfolio is a customised investment strategy where allocations are tailored per investor based on entry timing, valuation, and market conditions.

2. Are most PMS portfolios non-model?

No. The majority of PMS offerings in the market today use model portfolios, where all investors receive a similar portfolio structure.

3. Is a non-model portfolio better during volatility?

It can be, because it allows portfolio managers to adjust allocations based on real-time valuation and risk assessments.

4. Can returns differ between investors in a non-model PMS?

Yes. Since portfolios are not identical for all investors, returns may differ based on entry timing and allocation.

5. Should beginners opt for non-model portfolios?

Non-model portfolios are more suitable for experienced and high-net-worth investors who understand tactical allocation and active management.