Beyond mutual funds lies a tier of bespoke, regulated investment vehicles — Portfolio Management Services and Alternative Investment Funds — built for investors with larger capital, longer horizons and an appetite for concentrated, higher-conviction strategies.
PMS minimum investment
AIF minimum investment
SEBI-registered AIFs
AIF industry commitments
From your first SIP to ultra-HNI private markets
PMS and AIFs are both SEBI-regulated, but they work very differently. Understanding the distinction is the first step before choosing one — or both.
A SEBI-registered Portfolio Manager builds and manages a portfolio of stocks, bonds or other securities directly in your own name and demat account — not pooled with other investors. You own the actual shares; the manager makes the buy/sell calls.
Min. ₹50 Lakh · SEBI (Portfolio Managers) Regs, 2020A privately pooled investment vehicle — structured as a trust, LLP or company — that raises capital from sophisticated investors and deploys it into private equity, real estate, distressed debt, structured credit or hedge-fund style strategies.
Min. ₹1 Crore (₹25L for emp./directors) · SEBI (AIF) Regs, 2012The right vehicle depends on your ticket size, liquidity needs and the kind of strategy you're trying to access.
| Parameter | Mutual Fund | PMS | AIF |
|---|---|---|---|
| Minimum investment | ₹500 (SIP) | ₹50 Lakh | ₹1 Crore (₹25L emp./directors) |
| Structure | Pooled — you own units | You own securities directly | Pooled — you own fund units |
| Customisation | None — standard scheme | High — bespoke mandate | Fixed strategy per scheme |
| Liquidity | T+1 to T+3 | Generally liquid | Cat I & II: 3+ yr lock-in |
| Typical fees | 0.3%–2.5% expense ratio | 1–2.5% + 0–20% performance | 1.5–2.5% + 10–20% carry |
| Best suited for | Every investor | HNIs wanting customised listed exposure | UHNIs / family offices, private markets |
Figures are illustrative, based on prevailing SEBI norms as of 2026. Always verify current terms in the manager's Disclosure Document (PMS) or PPM (AIF) before investing.
Explore the structure, eligibility, categories and taxation of PMS and AIFs.
Manager has full authority to buy, sell and rebalance within the agreed mandate — the most popular form of PMS.
Manager recommends trades, but every transaction needs your explicit approval before execution.
Manager only advises; you execute trades yourself through your own broker, at the lowest fee tier.
₹50 lakh per client, mandated by SEBI since 2020. The minimum applies per strategy if you split across more than one.
1.0%–2.5% fixed management fee p.a. plus 10%–20% performance fee above a hurdle, usually with a high-water mark.
Mirrors direct equity/debt investing — STCG 20%, LTCG 12.5% on equity gains above the exemption threshold.
Tax rules are subject to periodic changes via the Union Budget. This is general information, not tax advice.
Venture Capital, Angel, SME, Social Venture & Infrastructure Funds — typically receive incentives.
Private Equity, Debt & Structured Credit, Fund of Funds, Real Estate — the largest category by AUM.
Long-short, quant & derivative-based strategies — closest to a "hedge fund" in the Indian context.
₹1 crore generally; ₹25 lakh for employees, directors or fund managers of the AIF itself.
Cat I & II usually closed-ended, 3-year minimum lock-in; Cat III can be open or closed-ended.
Cat I & II: pass-through, taxed in investor's hands. Cat III: taxed at fund level before distribution.
SEBI's Sept 2025 reform made Angel Funds accredited-investor-only with a 1-year lock-in. Regulations evolve frequently — confirm current rules with your advisor or the fund's latest PPM.
From large AMC-backed houses to specialist boutiques — eNivesh connects you with SEBI-registered managers suited to your goals. We do not run our own PMS or AIF.
SBI Funds, ICICI Prudential, Kotak, ASK, Motilal Oswal, Nippon India & Aditya Birla Sun Life run sizeable PMS books.
Marcellus, Aequitas, Green Lantern, Buoyant, Abakkus, Carnelian & White Oak focus on concentrated, high-conviction equity.
360 ONE, Edelweiss Alternatives, IIFL Alternate Assets, Kotak Alternate Assets, Avendus & ICICI Venture across Cat I/II/III.
PMS and AIFs are powerful tools, but not for every investor. Be honest with yourself on these points before committing capital.
PMS and many AIF strategies hold 10–25 securities — gains and losses are amplified versus the broader market.
Cat I & II AIFs are usually locked in for 3+ years; even PMS can carry exit loads on early redemption.
Management and performance fees are meaningfully higher than mutual funds, raising the bar for net alpha.
Returns track one manager's skill closely — exits or style drift can change future performance materially.
Like all market-linked products, there is no SEBI or government guarantee on returns or capital.
Disclosure Documents and PPMs are dense legal documents — have your advisor walk you through the fine print.
We assess net worth, horizon and risk appetite to confirm whether PMS, AIF, or a mix fits you.
Based on the latest SEBI/APMI disclosures, we shortlist 2–3 managers fitting your goals.
We help with KYC, demat opening (PMS) or PPM acknowledgement and capital commitment (AIF).
Portfolio reviews, performance tracking and rebalancing guidance as your needs evolve.
⚠️ Important Disclaimer: Portfolio Management Services (PMS) and Alternative Investment Funds (AIFs) are subject to market risks and are meant for sophisticated investors who understand and can bear the associated risks, including loss of capital. The minimum investment amounts (₹50 lakh for PMS, ₹1 crore for AIF, ₹25 lakh for AIF employees/directors, ₹70 crore for Large Value Funds) are as mandated by SEBI regulations and may be revised by the regulator from time to time. Past performance of any portfolio manager or AIF scheme is not indicative of future results. This page is for educational and informational purposes only and does not constitute investment advice, a recommendation, or an offer to invest in any specific scheme. eNivesh Financial Services acts as a referral/distribution partner connecting investors with SEBI-registered Portfolio Managers and AIF Managers and does not itself manage any PMS or AIF scheme. All fees, terms and risk factors are governed by the respective Disclosure Document (PMS) or Private Placement Memorandum (AIF) issued by the manager — investors must read these documents carefully before investing. Tax treatment is based on prevailing law as of 2026 and is subject to change; please consult a qualified tax advisor for guidance specific to your situation. Investors are advised to independently verify the SEBI registration of any Portfolio Manager or AIF before committing funds via the SEBI website (sebi.gov.in).