Two such compelling investment vehicles that are gaining traction among the tribe of HNIs are Portfolio Management Services (PMS) and Alternative Investment Funds (AIFs). This rising interest is exemplified by the growth of the alternative industry. The Indian alternative investment market currently boasts an asset size of ₹12 trillion (₹12 lakh crore), with approximately ₹5 trillion (₹5 lakh crore) managed by PMS providers and around ₹7 trillion (₹7 lakh crore) overseen by AIFS.
More than the basic
PMS is basically an offering that enables investors to utilise the expertise of skilled investment professionals who manage their equity portfolio. AIF, on the other hand, is a pooled investment vehicle that invests in a range of alternative investments, defined as investments that are different from traditional asset classes like pure debt or equity. The market offers a wide range of PMS schemes and three distinct categories of AIFs. Category I AIFs focus on investing in start-ups, small and medium-sized enterprises (SMEs), and social ventures. Category II AIFs are close-ended private equity, real estate, or special situation funds that primarily invest in unlisted companies. On the other hand, Category III AIFs employ complex investment strategies to invest in both listed and unlisted securities. While the minimum investment limit for PMS stands at ₹50 lakh, it increases to ₹1 crore for AIFS.
Distinct advantages of investing in PMS and AIFS
この記事は Outlook Business の June 2023 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です ? サインイン
この記事は Outlook Business の June 2023 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です? サインイン
From Chandni Chowk to Global Recognition
For Manish Aggarwal, director at Bikano, Bikanervala Foods, the family business was not just a responsibility but a passion he took to the global stage
Spotting AI Scams
Al has become an integral part of our lives, from customer service no insurance claims. But it is also becoming a tool for fraudsters who use it to scam individuals and corporations
Let a Hundred Flowers Bloom
On the banks of the Ganges in industrial Kanpur, a start-up has blossomed that turns waste flowers into incense
BATTERY LOW
India produces enough green energy to power many of its largest cities yet lacks the storage to use it efficiently. A nation blazing forward must leap ahead in battery technology to stay on course
We Have Everything Going for Rajasthan
Rajyavardhan Singh Rathore, Rajasthan’s industry and commerce minister, tells Pushpita Dey why the state is suited to become a hub for investments.
Dairy and Other Dilemmas
India’s refusal to open its dairy market has complicated trade negotiations for years. As global partners demand concessions, is the cost of protectionism outweighing benefits?
Riding in a Maze
As gig workers ride into an uncertain future with little more than a smartphone and a bike, the government is struggling to arrange a socialsafety net. But millions without social security is recipe for disaster
BIRLA'S BIGGEST BATTLE
As Kumar Mangalam Birla completes 30 years at the helm of the Aditya Birla Group, he has a battle to defend his businesses and conquer new ones
THE INNOVATION LEAP
India dreams of becoming a product nation. But unless the corporate sector significantly increases spending on R&D, the country will continue to lag behind global peers
EDUCATION BUDGET MUST DOUBLE EVERY 3 YEARS
Veezhinathan Kamakoti, a renowned academic and director of Indian Institute of Technology Madras, tells Deepsekhar Choudhury on what technology sovereignty means for India and how it can propel the country towards its vision of becoming a developed nation by 2047.
