PMS Transaction Costs and Slippage: The Silent Leak Most Investors Miss

Most PMS discussions focus on stock selection and strategy. But transaction costs and slippage can quietly shape your net outcome, especially in active portfolios. It is not about blaming activity. It is about measuring friction.

Transaction costs include brokerage, taxes, impact costs, and the difference between intended price and executed price. In small and mid-cap heavy portfolios, this friction can rise during volatile periods or when liquidity thins. Over time, small frictions compound just like fees do.

A practical investor asks for clarity: turnover, average holding period, and how the manager thinks about execution. A manager who respects cost is usually a manager who respects process.

Truvest Insight: Net returns are built by avoiding silent leaks.

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