At Sage Capital, we help investors explore opportunities beyond traditional products like mutual funds and fixed deposits. Two powerful options for wealth creation, especially for high-net-worth individuals, are Portfolio Management Services (PMS) and Alternative Investment Funds (AIFs). While both are advanced investment avenues, they differ in structure, access, and the kind of opportunities they offer.
What is PMS (Portfolio Management Services)?
PMS is a personalized investment service where a professional manager builds and manages your portfolio of securities such as equities, bonds, or a mix of asset classes. Unlike mutual funds, where investors pool money into a common fund, in PMS your portfolio is unique and held in your own name. This gives you:
-
Transparency – you directly own the securities in your portfolio.
-
Customization – the strategy can be tailored to your goals and risk appetite.
-
Active Management – expert managers constantly monitor and rebalance your investments.
What is AIF (Alternative Investment Fund)?
AIFs are pooled investment vehicles that allow multiple investors to participate in specialized and less conventional opportunities. These may include:
-
Private Equity (investments in private companies)
-
Venture Capital (early-stage startups)
-
Real Estate Funds
-
Hedge/Structured Funds with complex strategies
Because they deal in niche and sometimes illiquid assets, AIFs are designed for investors seeking higher risk-reward opportunities and are comfortable with longer investment horizons.
Key Differences Between PMS and AIF
AIF | PMS | |
|---|---|---|
Registration | Registration is valid for 3 years and can be renewed. | Registration is valid for 3 years and can be renewed. |
Risk | Involves high-risk, non-traditional investments with longer horizons; considered riskier than PMS. | Higher risk than mutual funds but generally considered less risky than AIFs. |
Asset Allocation | Allocation depends on the category - can include start-ups, hedge funds, private equity, real estate, and PIPE funds. | Includes a mix of assets such as stocks, bonds, and real estate. |
Regulator | Governed by SEBI under the Alternative Investment Funds Regulations, 2012. | Governed by SEBI under the Portfolio Managers Regulations, 1993. |
Minimum Investment | Minimum investment required is ₹1 crore. | Minimum investment typically starts at ₹50 lakh. |
Number of Investors | Capped at a maximum of 1,000 investors per scheme (as per SEBI regulations). | No restriction on the number of investors. |
Minimum Corpus | Minimum corpus: ₹20 crore for each scheme (₹10 crore in the case of Angel Funds). | No minimum corpus requirement. |
Segregation of Funds | Funds are pooled, with no requirement for client-wise segregation. | Requires segregation of funds - each client’s portfolio is managed and maintained separately. |
Lock-in Period | Close-ended funds have a lock-in period that may range from a few months to several years. | Generally, no lock-in period exists. |
Which One Should You Choose?
-
Choose PMS if you prefer a customized portfolio, more control over investments, and flexibility in liquidity. It’s closer to having your personal fund manager.
-
Choose AIF if you are comfortable with higher risk, longer lock-ins, and want exposure to unique opportunities like startups, private companies, or real estate funds.
Both PMS and AIF are designed for investors who already have a strong financial base and are now looking to diversify into more sophisticated products.
How Sage Capital Adds Value
Investing in PMS or AIF requires careful evaluation, and that’s where we step in. Sage Capital supports you at every stage:
-
Selection & Due Diligence – We evaluate fund managers, strategies, and past performance to recommend only credible options.
-
Goal Alignment – We match investment opportunities with your personal goals, risk tolerance, and time horizon.
-
Ongoing Monitoring – We track performance, provide updates, and ensure your portfolio stays aligned with your wealth-building journey.
-
Clarity & Transparency – We help you understand structures, fee models, taxation, and reporting, so you make informed decisions with confidence.
PMS offers personalized, transparent management of your wealth in listed markets, while AIF opens doors to niche, high-growth opportunities with higher risk. At Sage Capital, we ensure you choose the right path—and walk it with complete clarity and expert guidance.
At Sage Capital, we help investors explore opportunities beyond traditional products like mutual funds and fixed deposits. Two powerful options for wealth creation, especially for high-net-worth individuals, are Portfolio Management Services (PMS) and Alternative Investment Funds (AIFs). While both are advanced investment avenues, they differ in structure, access, and the kind of opportunities they offer.
What is PMS (Portfolio Management Services)?
PMS is a personalized investment service where a professional manager builds and manages your portfolio of securities such as equities, bonds, or a mix of asset classes. Unlike mutual funds, where investors pool money into a common fund, in PMS your portfolio is unique and held in your own name. This gives you:
-
Transparency – you directly own the securities in your portfolio.
-
Customization – the strategy can be tailored to your goals and risk appetite.
-
Active Management – expert managers constantly monitor and rebalance your investments.
What is AIF (Alternative Investment Fund)?
AIFs are pooled investment vehicles that allow multiple investors to participate in specialized and less conventional opportunities. These may include:
-
Private Equity (investments in private companies)
-
Venture Capital (early-stage startups)
-
Real Estate Funds
-
Hedge/Structured Funds with complex strategies
Because they deal in niche and sometimes illiquid assets, AIFs are designed for investors seeking higher risk-reward opportunities and are comfortable with longer investment horizons.
Key Differences Between PMS and AIF
AIF | PMS | |
|---|---|---|
Registration | Registration is valid for 3 years and can be renewed. | Registration is valid for 3 years and can be renewed. |
Risk | Involves high-risk, non-traditional investments with longer horizons; considered riskier than PMS. | Higher risk than mutual funds but generally considered less risky than AIFs. |
Asset Allocation | Allocation depends on the category - can include start-ups, hedge funds, private equity, real estate, and PIPE funds. | Includes a mix of assets such as stocks, bonds, and real estate. |
Regulator | Governed by SEBI under the Alternative Investment Funds Regulations, 2012. | Governed by SEBI under the Portfolio Managers Regulations, 1993. |
Minimum Investment | Minimum investment required is ₹1 crore. | Minimum investment typically starts at ₹50 lakh. |
Number of Investors | Capped at a maximum of 1,000 investors per scheme (as per SEBI regulations). | No restriction on the number of investors. |
Minimum Corpus | Minimum corpus: ₹20 crore for each scheme (₹10 crore in the case of Angel Funds). | No minimum corpus requirement. |
Segregation of Funds | Funds are pooled, with no requirement for client-wise segregation. | Requires segregation of funds - each client’s portfolio is managed and maintained separately. |
Lock-in Period | Close-ended funds have a lock-in period that may range from a few months to several years. | Generally, no lock-in period exists. |
Which One Should You Choose?
-
Choose PMS if you prefer a customized portfolio, more control over investments, and flexibility in liquidity. It’s closer to having your personal fund manager.
-
Choose AIF if you are comfortable with higher risk, longer lock-ins, and want exposure to unique opportunities like startups, private companies, or real estate funds.
Both PMS and AIF are designed for investors who already have a strong financial base and are now looking to diversify into more sophisticated products.
How Sage Capital Adds Value
Investing in PMS or AIF requires careful evaluation, and that’s where we step in. Sage Capital supports you at every stage:
-
Selection & Due Diligence – We evaluate fund managers, strategies, and past performance to recommend only credible options.
-
Goal Alignment – We match investment opportunities with your personal goals, risk tolerance, and time horizon.
-
Ongoing Monitoring – We track performance, provide updates, and ensure your portfolio stays aligned with your wealth-building journey.
-
Clarity & Transparency – We help you understand structures, fee models, taxation, and reporting, so you make informed decisions with confidence.
PMS offers personalized, transparent management of your wealth in listed markets, while AIF opens doors to niche, high-growth opportunities with higher risk. At Sage Capital, we ensure you choose the right path—and walk it with complete clarity and expert guidance.
FAQ
Curious how PMS & AIF works?
Our FAQs break it down simply.
What is the difference between a PMS, an AIF, and a Mutual Fund?
A Mutual Fund is a collective investment vehicle where a fund manager pools money from a large number of investors to invest in securities. A Portfolio Management Service (PMS) is a customized investment portfolio managed on behalf of a single client or a small group of clients. An Alternative Investment Fund (AIF) is a privately pooled investment vehicle for sophisticated investors. We can help you understand which option aligns with your investment profile and goals.
Is a PMS or AIF right for me?
PMS and AIFs are generally suitable for high-net-worth individuals (HNIs) who are looking for a more specialized and exclusive investment management approach. We will assess your investment goals, risk appetite, and capital to determine if a PMS or AIF is a suitable addition to your portfolio.
How do you select the right PMS or AIF for me?
Our selection process is rigorous. We perform a thorough due diligence on various PMS and AIF managers, analyzing their investment philosophy, past performance, fund manager's experience, and risk management practices. Our goal is to connect you with the right manager that aligns with your specific investment objectives.