Investment Vehicles on WebNotes

Alternative Investment Fund (AIF) in India

Sun, 17 May 2026 00:00:00 +0000

An Alternative Investment Fund (AIF) in India is a SEBI-regulated privately-pooled investment vehicle that collects funds from sophisticated investors (Indian or foreign) for investing in non-traditional asset classes or non-traditional strategies. AIFs are governed by the SEBI (Alternative Investment Funds) Regulations, 2012, which established a comprehensive framework distinct from the mutual fund and Portfolio Management Service frameworks. AIFs occupy the position between PMS (per-client portfolios for HNIs) and mutual funds (pooled retail products), as pooled vehicles for sophisticated investors with substantial minimum-investment thresholds and strategy flexibility.

Portfolio Management Service in India

Sun, 17 May 2026 00:00:00 +0000

A Portfolio Management Service (PMS) in India is a SEBI-regulated investment-management vehicle through which a SEBI-registered Portfolio Manager manages individual client portfolios under a defined mandate. PMS is the principal vehicle for high-net-worth investors seeking customised investment management beyond what mutual fund schemes provide. Governed by the SEBI (Portfolio Managers) Regulations, 1993 (with multiple subsequent amendments), the PMS framework distinguishes between discretionary PMS (the portfolio manager has full investment discretion) and non-discretionary PMS (the manager requires client approval for each transaction). The minimum-investment threshold, raised progressively by SEBI over decades, stands at Rs 50 lakh as of 2026, positioning PMS as a high-net-worth-investor product distinct from mutual fund schemes that are open at much lower minimums (Rs 100 to Rs 5,000).

Specialised Investment Fund (SIF) in India

Sun, 17 May 2026 00:00:00 +0000

A Specialised Investment Fund (SIF) in India is a new SEBI-introduced investment-vehicle category, formalised through SEBI’s 2024 framework, that bridges the gap between mutual funds (open to retail investors at low minimum thresholds with standardised strategy categories) and Portfolio Management Services and Alternative Investment Funds (high minimum thresholds with strategy flexibility). The SIF category was proposed by SEBI in 2024 with a Rs 10 lakh minimum investment per investor, positioning it as accessible to mass-affluent investors who fall between retail-MF and HNI-PMS/AIF segments.