PMS/AIF

Portfolio Management Services (PMS) is a customized investment option that offers personalized investment strategies to manage and administer investment portfolios of individuals or entities. Alternative Investment Funds (AIF) invest in alternative assets such as private equity, venture capital, real estate, and hedge funds and are regulated by SEBI, making them a riskier investment option but with the potential to generate higher returns. Both PMS and AIF provide investors with a tailored approach to investing.

Advantages of Portfolio Management Services (PMS)

Personalized investment strategies based on individual goals and risk tolerance.
Direct ownership of the securities in the portfolio.
Higher transparency and flexibility in investment decisions.
Portfolio manager's expertise and knowledge can lead to higher returns.
Can invest in a range of securities like equity shares, debt-instruments, mutualfunds, etc.

Advantages of Alternative Investment Funds (AIF)

Potential for higher returns due to investment in alternative assets.
Diversification of the portfolio and reduced correlation with traditional asset classes.
Professional management by experienced fund managers.
Investment in illiquid assets like private equity, venture capital, and real estate that can generate higher returns over the long term.
Flexibility in investment strategies and structures.

Types of PMS schemes:

Discretionary PMS.
Non-Discretionary PMS.
Advisory PMS.

Types of AIF schemes:

Category I AIF
Category II AIF
Category III AIF

Category I AIF includes startups, SMEs, social ventures, and infrastructure funds. Category II AIF includes real estate funds, private equity funds, and debt funds. Category III AIF includes hedge funds and other funds that employ complex trading strategies.