Taxation issues- You must know that your PMS is different from the mutual funds. With mutual funds, the taxation works as if you have entered the mutual fund once, and the trades done by the mutual fund are not individually taxed. But in PMS, as the fund manager is managing your portfolio on your behalf, the taxation is as per each and every stock bought and sold. Thus, you need to understand the taxation hit you will get if you immediately square off your portfolio. \rConcentrated bets- PMS funds usually have high concentration bets. These strategies outperform in the long term, and you might miss the return by exiting at a low price. It is possible that the underperformance is only in the short term and not the long term. \rDon’t compare with top performing PMS- You need to compare your returns over the long term with a benchmark, and do not make the mistake of comparing the returns with the top performing PMS as in the next cycle, it might change.\rTime-consuming- Exiting a PMS is time-consuming as you might need to close the Demat account linked to the PMS. This can take two to three weeks. \rTherefore, if your PMS is underperforming, you should check if you have conviction in the PMS. If you have conviction, you should definitely continue to hold the PMS irrespective of the short-term performance. If you have lost confidence in the PMS, you can exit the PMS but make sure you understand the exit costs and time.