Both PMS and AIF are premium investment solutions designed for High Net-Worth Individuals (HNIs) looking for customized or sophisticated investment strategies beyond mutual funds.
PMS refers to professional portfolio management where an expert fund manager invests in stocks, bonds, or other securities on your behalf. Unlike mutual funds, PMS offers customized, actively managed portfolios tailored to your risk profile and financial goals.
| Feature | Description |
|---|---|
| Minimum Investment | ₹50 lakhs |
| Ownership | You directly own the stocks in your demat account |
| Customization | Portfolios can be tailored based on your preferences |
| Transparency | Regular reporting and full visibility on holdings |
| Types of PMS | Discretionary (fully managed) or non-discretionary (advice-only) |
HNIs looking for personalized and actively managed portfolios
Investors wanting to diversify beyond mutual funds
Those who prefer long-term equity investment strategies
AIFs are privately pooled investment funds that invest in assets beyond traditional equity and debt — such as private equity, venture capital, real estate, structured products, and more.
They follow unique strategies, suitable for sophisticated investors looking to diversify and tap into non-traditional opportunities.
| Category | What It Invests In | Risk/Return Profile |
|---|---|---|
| Category I | Startups, SMEs, Infrastructure | Moderate risk, long-term focus |
| Category II | Private Equity, Debt Funds, Real Estate | High returns, medium-high risk |
| Category III | Hedge Funds, Derivatives, Complex Strategies | High risk, market-linked |
Access to private market opportunities
Diversified strategies across asset classes
Potential for high returns, though with higher risk
Managed by professional fund houses with deep research
SIF is a new investment vehicle introduced by SEBI in India. It is designed to fill the gap between ordinary mutual funds and high-end services like PMS or AIF, providing more flexibility than traditional mutual funds but with significantly lower entry requirements compared to PMS or AIF.
SIFs are managed by SEBI-registered Asset Management Companies (AMCs). The strategies under SIF can be more sophisticated — including long-short equity or debt strategies, structured debt, thematic investing, hybrid models, derivatives, and dynamic allocation techniques. These are strategies typically not allowed in standard mutual funds.
SIFs may be structured as open-ended, close-ended, or interval schemes depending on the fund's strategy and objectives.
More advanced strategies compared to regular mutual funds
Lower investment entry barrier than PMS/AIF
Managed by SEBI-registered AMCs with full regulatory oversight
Allows flexible strategies like long-short, derivatives, thematic & hybrid approaches
Can be structured as open-end, close-end, or interval schemes
In simple terms, SIF is a “middle-ground investment class” — more advanced than mutual funds, but less capital-intensive and more accessible compared to PMS & AIF.
Personalized Portfolio Management
Direct Ownership of Stocks
Active & Professional Management
Higher Return Potential
Transparent Reporting
Tax Efficiency
Best Suited For: HNIs with an investable surplus of ₹50 lakhs+
Access to Unique Investment Opportunities
Portfolio Diversification
Higher Return Potential
Flexibility in Strategy
Professionally Managed by Experts
Regulatory Oversight
Best Suited For: HNIs and Ultra-HNIs (min investment ₹1 crore)
| Feature | PMS | AIF |
|---|---|---|
| Minimum Investment | ₹50 lakhs | ₹1 crore |
| Investment Style | Custom portfolio | Pooled investment strategy |
| Asset Class Focus | Mostly listed equities | Listed + Unlisted + Structured |
| Control/Transparency | High (investor sees all holdings) | Moderate (fund-level view) |
| Liquidity | Moderate to High | Low to Moderate (3–5 years typical) |
| Taxation | On capital gains (individual level) | At fund or pass-through level |
| Feature | Mutual Fund (MF) | PMS |
|---|---|---|
| Structure | Pooled investment vehicle | Individually managed portfolio |
| Minimum Investment | ₹500 to ₹5,000 | ₹50 lakhs |
| Regulation by SEBI | Yes | Yes |
| Investment Strategy | Diversified, regulated, often conservative | Customized, active, high-conviction |
| Ownership of Securities | Units of a fund | Direct ownership in demat account |
| Customization | Not customizable | Fully customizable |
| Transparency | Standardized NAV & monthly reports | Detailed transaction-level reporting |
| Taxation | Based on type (Equity/Debt MF) | Taxed like direct equity |
| Liquidity | High (open-end funds) | Moderate |
| Return Potential | Moderate | Higher |
| Suitable For | All retail investors | HNIs seeking personalized portfolios |
“Think of Mutual Funds as your entry-level investment vehicle, PMS as your personalized car with a driver, and AIF as a high-performance machine built for specific terrain.”
Understand suitability based on your profile
Navigate tax implications & performance metrics
Choose the best fund manager or strategy
Build a blended portfolio combining all 3, if needed
📲 Want to know which option suits you best? Let’s schedule a personalized portfolio discussion.
📞 Call Team Blue Pelican Wealth at +91 99096 99066