Exclusive Investment Vehicles Beyond Mutual Funds
AIF, PMS, and SIF for HNI investors — private equity and beyond.
When your portfolio outgrows traditional products, AIF, PMS, and SIF offer access to private equity, hedge strategies, and personalised management unavailable in the open market.
HNI Investment Tiers
AIF
Min ₹1 Crore
PMS
Min ₹50 Lakhs
SIF
Min ₹10 Lakhs
SEBI-regulated alternative investments
SEBI Registered
HNI Products
₹10+ L Cr
AIF Industry
Cat 1-3
AIF Categories
₹1 Cr
Min AIF
SEBI
Registered &
₹10+ L Cr
AIF Industry AUM
Cat 1-3
AIF Categories
₹1 Cr
Min AIF Investment
SEBI
Registered & Regulated
Three AIF Categories Explained
AIF Category I
Minimum: ₹1 Crore
Funds that invest in start-ups, early-stage companies, social ventures, SMEs, and infrastructure projects. Includes Venture Capital Funds, Angel Funds, and Social Impact Funds.
- Venture Capital Funds (VCF)
- Angel Funds (min ₹25L)
- Social Impact Funds
- SME & Infrastructure Funds
- SEBI registered & regulated
AIF Category II
Minimum: ₹1 Crore
Invest in unlisted companies through equity or structured debt. Includes Private Equity funds, Real Estate funds, and Distressed Asset funds.
- Private Equity (PE) Funds
- Real Estate Funds
- Distressed Asset Funds
- Fund of Funds
- 3-7 year typical lock-in
AIF Category III
Minimum: ₹1 Crore
Employ complex strategies including leverage, derivatives, and long-short positions. Designed to generate returns uncorrelated with market direction.
- Long-Short Equity Funds
- Multi-Strategy Funds
- PIPE Funds
- Quantitative Strategies
- Taxed at fund level (Cat III)
PMS & SIF — Personalised Portfolios
Portfolio Management Services
Minimum
₹50 Lakh (SEBI mandated)
A personalised, discretionary portfolio managed directly in your name. Unlike mutual funds, PMS gives you full transparency — you see every stock, every transaction.
- Direct stock ownership in your demat
- Customised to your goals and tax situation
- Fund manager access and quarterly calls
- Not subject to AMFI AUM caps
- Minimum: ₹50 lakh (SEBI mandated)
Specialised Investment Funds
Minimum
₹10 Lakh
A new SEBI-regulated category (2024) bridging the gap between mutual funds and PMS. Offers strategies not available in traditional mutual funds with lower minimums than PMS.
- Higher flexibility than mutual funds
- Lower entry than PMS (₹10L min)
- Regulated under SEBI MF framework
- Access to long-short & complex strategies
- Suitable for sophisticated retail investors
Why HNIs Choose Alternative Products
Diversification
Access assets uncorrelated with listed equity markets.
Alpha Generation
Specialist managers with strategies unavailable in MFs.
Private Markets
Participate in company growth before IPO.
SEBI Regulated
All AIFs, PMS, and SIFs are SEBI-registered and audited.
Important: AIFs and PMS carry higher risk and illiquidity. Past performance does not guarantee future returns. These products are suitable only for investors who understand and accept these risks.
AIF & PMS FAQs
Key questions answered about alternative investment products.
AIFs are for accredited investors with a high risk tolerance, long investment horizon (5+ years), and ability to stay illiquid. Minimum ₹1 crore commitment is required.
In AIF, you invest in a pooled vehicle. In PMS, securities are held directly in your own demat account. PMS offers more transparency and customisation; AIFs offer access to private/unlisted markets.
No. AIFs carry higher risk than mutual funds. Category III AIFs in particular can lose principal due to leverage and complex strategies. These are for investors who understand and accept high risk.
Category III AIFs are taxed at the fund level — gains are taxed before distribution. For other categories, pass-through taxation applies (investors taxed per their holding).
Ready to Go Beyond Mutual Funds?
AIF, PMS, and SIF for investors seeking higher returns beyond traditional markets. From ₹10L (SIF) to ₹1 Cr (AIF). Strictly SEBI-regulated.
Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing.