Core wealth
Choose Mutual Funds
Best when accessibility, broad diversification and simple portfolio building matter most.
Start with portfolio role
The right comparison starts with what the allocation must do—not which product sounds more sophisticated.
Best when accessibility, broad diversification and simple portfolio building matter most.
Built for investors who want long-short or dynamic strategies within a pooled structure.
Relevant when direct ownership, concentration and portfolio customisation justify the higher ticket.
Suited to investors who can accept larger minimums, lower liquidity and more complex exposures.
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₹10 Lakhs
₹100–₹500
₹50 Lakhs
Typically ₹1 Crore
Pooled, unit-based
Pooled, unit-based
Separately managed demat account
Pooled, often closed-ended
Long-short, hybrid and active allocation
Primarily long-only with hedging
Mandate-led and customisable
Broad alternatives and private assets
Permitted within SEBI limits
Hedging only
Manager and mandate dependent
Broader flexibility in Category III
Daily or interval-based
Usually daily
Negotiated; less standardised
Limited or locked
Published NAV and scheme disclosures
Daily NAV and portfolio disclosures
Client-level reporting
Periodic investor reporting
TER-led
TER-led
Management fee; may include performance share
Management fee; may include carry
Mutual-fund tax treatment
Mutual-fund tax treatment
Investor-level tax events
Category and structure dependent
Advanced strategy allocation
Core long-term allocation
Bespoke high-conviction portfolio
Satellite alternatives allocation
HNI seeking sophistication with fund-like access
Retail and HNI investors
HNI seeking customisation
Ultra-HNI and family-office investors
| Decision factor | Specialized Investment FundAdvanced strategies in a pooled fund | Mutual FundAccessible core portfolio building | Portfolio Management ServiceCustomised, directly owned portfolio | Alternative Investment FundPrivate-market and complex alternatives |
|---|---|---|---|---|
| Minimum investment | ₹10 Lakhs | ₹100–₹500 | ₹50 Lakhs | Typically ₹1 Crore |
| Portfolio structure | Pooled, unit-based | Pooled, unit-based | Separately managed demat account | Pooled, often closed-ended |
| Strategy range | Long-short, hybrid and active allocation | Primarily long-only with hedging | Mandate-led and customisable | Broad alternatives and private assets |
| Short exposure | Permitted within SEBI limits | Hedging only | Manager and mandate dependent | Broader flexibility in Category III |
| Liquidity | Daily or interval-based | Usually daily | Negotiated; less standardised | Limited or locked |
| Transparency | Published NAV and scheme disclosures | Daily NAV and portfolio disclosures | Client-level reporting | Periodic investor reporting |
| Cost model | TER-led | TER-led | Management fee; may include performance share | Management fee; may include carry |
| Tax handling | Mutual-fund tax treatment | Mutual-fund tax treatment | Investor-level tax events | Category and structure dependent |
| Best portfolio role | Advanced strategy allocation | Core long-term allocation | Bespoke high-conviction portfolio | Satellite alternatives allocation |
| Typical investor fit | HNI seeking sophistication with fund-like access | Retail and HNI investors | HNI seeking customisation | Ultra-HNI and family-office investors |
Structural difference
Mutual Funds and SIFs issue units in pooled portfolios. PMS gives direct security ownership in your demat. AIFs pool capital into alternative strategies and may restrict withdrawals.
Pooled for retail and HNI investors, with low minimums, published NAVs and broad diversification.
Pooled under the mutual-fund framework, with a ₹10 Lakh minimum and access to advanced, SEBI-governed strategies.
A separately managed account where the investor directly owns securities and the manager can tailor the mandate.
A pooled alternative vehicle for complex, private-market or hedge-fund-style exposures, usually with a larger ticket and lower liquidity.
Investor fit
PMS often combines a management fee with performance sharing, while SIFs operate through TER-led fund structures. For a ₹10–25 Lakh investor seeking long-short or dynamic allocation, that structural difference can materially affect net outcomes over time.
Disclaimer: This article is for educational purposes only and does not constitute investment advice. Investment products are subject to market risk, scheme-specific eligibility, fees and liquidity terms. Read all offer and scheme documents before investing.