portfolio management servcies
PMS is a tailored investment portfolio in fixed income instruments, individual securities, equity, and structured products. It caters to the investment objectives of high-net-worth individuals with a minimum ticket size of Rs. 50 lakhs.
PMS offers professional management of your investments and can be discretionary or non-discretionary. In discretionary, the fund or PMS managers manage your portfolio by tracking the market and keeping your investment requirements in mind. Contrarily, in non-discretionary, investors can make the final decisions.
In PMS, you actively monitor your personalised portfolio to track developments and maximise returns. Since experienced portfolio managers handle your investments, all you need to do is review the transactions periodically and get performance updates. Besides, fund managers receive flexibility in selecting stocks, sectoral allocation, and maintaining cash position.
Here, your portfolio is usually concentrated and your stocks are more likely to generate alpha returns in the long ru
alternate investment fund
As the name suggests, AIFs are more focused on investing in Alternative investments, which essentially are investment products other than the typical asset classes such as equity and debt. The asset classes invested in by AIFs include private equity, hedge funds, real estate, etc.
Another major distinguishing factor between AIFs and PMS is that AIFs are pooled investment funds. This means that money is pooled in from many different investors and the entire pool is invested in the above-mentioned asset classes. This does give away some of the personalization of portfolio management services but are a great way to gain exposure to Alternative asset classes as a diversification tool.
SEBI classifies AIFs into three different categories based on the kind of instruments they invest in. These are Category 1, Category 2, and Category 3 AIFs.
The SEBI-mandated minimum investment requirement of AIFs is 1 crore.