PMS vs AIF vs SIF: how India's managed investment structures differ
Sutra & Signal Research · Published · Last reviewed · 7 min read
The short answer
All three are SEBI-regulated. A Portfolio Management Service (PMS) manages securities in your own name and generally needs at least ₹50 lakh. An Alternative Investment Fund (AIF) pools money from investors and generally needs at least ₹1 crore. A Specialized Investment Fund (SIF) is offered by eligible mutual fund houses and needs at least ₹10 lakh across the investor's SIF investments with that house.
At a glance
| PMS | AIF | SIF | |
|---|---|---|---|
| Governed by | SEBI (Portfolio Managers) Regulations, 2020 | SEBI (Alternative Investment Funds) Regulations, 2012 | SEBI framework for Specialized Investment Funds under the Mutual Funds Regulations (2025) |
| Typical minimum | ₹50 lakh | ₹1 crore (exceptions, e.g. accredited investors) | ₹10 lakh across SIF strategies of the AMC |
| Holding structure | Securities held in the investor's own demat account | Units of a pooled fund | Units of a pooled fund run by a mutual fund house |
| Who can offer it | SEBI-registered portfolio manager | SEBI-registered AIF | Eligible mutual fund (AMC) |
Portfolio Management Services
A PMS is a tailored mandate. You keep the securities in your own name, which brings transparency and also means you see every position's ups and downs. Fees often combine a fixed management fee with a performance fee; read the fee schedule carefully.
Alternative Investment Funds
AIFs are pooled vehicles in three categories. Category III AIFs may use complex trading strategies, including leverage and derivatives within limits. Minimums are high because the strategies can be complex and illiquid.
Specialized Investment Funds
SIFs were introduced by SEBI to bridge the gap between mutual funds and PMS. They allow strategies such as long-short equity with limited unhedged short exposure through derivatives, offered by mutual fund houses that meet eligibility conditions.
Minimums are entry thresholds, not suitability tests. Whether a structure suits you depends on your goals, horizon and tolerance for loss.
Our position
Sutra & Signal does not currently offer a PMS, AIF or SIF. We publish this guide as education. Always confirm a provider's SEBI registration on SEBI's website before investing.