Portfolio Management & AIFs

Innovative Investment Avenues for High Net Worth Individuals.

Portfolio Management Services (PMS)

Portfolio Management Services (PMS) is a customized and professionally managed investment vehicle that uses different investment strategies to take advantage of market linked opportunities.

PMS is ideal for high-net worth individuals (HNI’s) who are willing to take on risk and gain market exposure, by investing directly into a basket of securities such as equities, fixed income, structured products, etc.

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Alternative Investment Funds (AIFs)

Alternative Investment Funds represent privately pooled investment vehicles that collect funds from sophisticated investors, whether Indian or foreign, for investing according to a defined investment policy. AIFs are regulated by SEBI and classified into three categories based on their investment strategy and impact.

Category I AIFs

Funds that have positive spillover effects on the economy and receive government incentives. These include venture capital funds, angel funds, social venture funds, SME funds, and infrastructure funds.

Category II AIFs

Funds that don't fall under Category I or III and don't undertake leverage other than to meet day-to-day operational requirements. These include private equity funds, debt funds, and real estate funds.

Category III AIFs

Funds that employ diverse or complex trading strategies, including the use of leverage through investments in listed or unlisted derivatives. These include hedge funds, PIPE funds, and strategy funds.

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Regulatory Framework

SEBI provides comprehensive regulations for both PMS and AIFs to ensure investor protection. The regulatory framework ensures transparency, disclosure, and professional management while allowing flexibility for innovative investment strategies.

Performance Benchmarks

Understanding performance metrics is crucial for evaluating PMS and AIFs. SEBI has mandated standardized performance reporting frameworks to enable proper comparison across funds and strategies.

Growing Alternative Investment Landscape - AIFs

Alternative investment ecosystem has shown remarkable growth in recent years, driven by increasing domestic wealth, regulatory improvements, and growing interest from global investors. The future outlook remains positive with continued innovations in investment strategies and product offerings.

Disclaimer

The information provided herein are taken from an open source content purely for informational purposes.