PMS

PMS is an investment service offered by a portfolio manager whereby its investors get the flexibility to tailor a portfolio, according to personal preferences and their financial goals.Tighter regulatory control on MF also makes it safer than the investments through PMS. The minimum investment size to start a PMS is Rs 50 lakh. “Mutual Funds work in a bit rigid framework by the nature of their mandate.

Portfolio Management Services (PMS), service offered by the Portfolio Manager, is an investment portfolio in stocks, fixed income, debt, cash, structured products and other individual securities, managed by a professional money manager that can potentially be tailored to meet specific investment objectives.

AIF

Alternative Investment Fund or AIF means any fund established or incorporated in India which is a privately pooled investment vehicle which collects funds from sophisticated investors, whether Indian or foreign, for investing it in accordance with a defined investment policy for the benefit of its investors.

PMS are of two types; discretionary and non-discretionary based on the authority of the fund manager. Category-I and II AIFs have a minimum tenure of 3 years and a maximum of 5 years. The minimum term is extended when two-thirds of investors by value approve it. Category-III funds have no minimum tenure.