AMFI Registered Mutual Fund Distributor & SIF Distributor (ARN-143182)APMI Registered PMS Distributor (APRN-05201)
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SIF vs PMS

SIF or PMS? How the two actually differ.

Both give you access to professionally managed strategies with a higher minimum than mutual funds. The difference is in what you own, how much you need, how you exit, and how you are taxed.

Book a meetingAlso compare PMS vs AIF →

At a glance

SIF minimum
₹10 lakh, across a fund house’s SIF strategies
PMS minimum
₹50 lakh, in cash or securities
Accredited investors
Exempt from both minimums
SIF ownership
Units of a pooled fund
PMS ownership
Securities in your own demat account
Our role
We distribute both; the fund house or manager runs them

Based on rules as of November 2026. Actual terms vary by fund house, manager and strategy.

What it is

A Specialized Investment Fund (SIF) is a mutual-fund-house product. Your money is pooled with other investors’, you hold units, and the strategy can take limited short positions through derivatives, within SEBI limits.

A PMS manages a portfolio for you alone. Shares and bonds are bought in your name and held in your own demat account, so you see every holding and every trade.

Neither is better or safer in itself. The useful comparison is between specific strategies, their costs, their liquidity and how they fit the rest of your portfolio.

Side by side

A summary of typical features. Each SIF strategy’s Investment Strategy Information Document (ISID) and each PMS Disclosure Document set out the actual terms.

Swipe to compare →

SIFPMS
What it isA pooled fund: you hold units, like a mutual fundA portfolio run for you, held in your own demat account
Regulated underSEBI Mutual Funds RegulationsSEBI Portfolio Managers Regulations
Minimum₹10 lakh in total across one fund house’s SIF strategies₹50 lakh, in cash or securities
Strategy freedomCan take limited short positions through derivatives, within SEBI limitsUsually concentrated portfolios of listed shares or bonds, within your mandate
Ways to investLumpsum; SIP, STP and SWP where offeredLumpsum, or by transferring securities you already hold
Getting money outAs per each strategy’s redemption frequency; notice may applyAs per your agreement; exit charges only in the first 3 years, within SEBI limits
CostsAn expense ratio, under mutual fund expense rulesFixed and/or performance fee, plus brokerage and custody charges
TaxTaxed like a mutual fund, when you redeemEach sale inside your portfolio is taxable to you, even if you don’t withdraw
What you seeNAV and account statementsEvery holding, trade and fee

SIF

What it is
A pooled fund: you hold units, like a mutual fund
Regulated under
SEBI Mutual Funds Regulations
Minimum
₹10 lakh in total across one fund house’s SIF strategies
Strategy freedom
Can take limited short positions through derivatives, within SEBI limits
Ways to invest
Lumpsum; SIP, STP and SWP where offered
Getting money out
As per each strategy’s redemption frequency; notice may apply
Costs
An expense ratio, under mutual fund expense rules
Tax
Taxed like a mutual fund, when you redeem
What you see
NAV and account statements

PMS

What it is
A portfolio run for you, held in your own demat account
Regulated under
SEBI Portfolio Managers Regulations
Minimum
₹50 lakh, in cash or securities
Strategy freedom
Usually concentrated portfolios of listed shares or bonds, within your mandate
Ways to invest
Lumpsum, or by transferring securities you already hold
Getting money out
As per your agreement; exit charges only in the first 3 years, within SEBI limits
Costs
Fixed and/or performance fee, plus brokerage and custody charges
Tax
Each sale inside your portfolio is taxable to you, even if you don’t withdraw
What you see
Every holding, trade and fee

Before you choose, check

The headline differences matter less than the specific strategy. Look at:

  • The strategy document
    The ISID for a SIF, or the Disclosure Document for a PMS: objective, risk level and limits.
  • Track record
    SIFs are a newer category, so histories are short. For PMS, look at results through a full market cycle.
  • Liquidity
    How often you can redeem or withdraw, notice periods, and any exit charges.
  • Total costs
    Expense ratio, or management and performance fees, plus brokerage, custody and tax.

Is it for you?

May be worth exploring if you…

  • Want a long-short or more flexible strategy with a smaller minimum (SIF)
  • Want to see and own each holding directly, and can invest ₹50 lakh (PMS)
  • Understand that returns are not guaranteed and can be negative
  • Will read the ISID or Disclosure Document before deciding

Pause and consider if you…

  • May need this money soon, or need daily access to all of it
  • Would be unsettled if a strategy lags a rising market
  • Are comparing only past returns, without costs and risks
  • Prefer simple, low-minimum products such as regular mutual funds

This is general information, not an assessment of your suitability, which depends on your circumstances and the specific scheme or product.

Safeguards

  • SIFs regulated by SEBI under the Mutual Funds Regulations, offered only by eligible fund houses
  • PMS regulated by SEBI under the Portfolio Managers Regulations
  • An ISID for each SIF strategy, with a risk band from Level 1 to 5
  • A Disclosure Document and client agreement before you invest in a PMS
  • PMS securities held in your own name, through a custodian

Regulation and risk labels do not guarantee returns or prevent losses.

Risks & costs to know

  • Market risk: both can fall in value; returns are not guaranteed
  • Derivative risk (SIF): short positions can lose money when markets rise
  • Concentration (PMS): fewer holdings can mean bigger swings
  • Track record (SIF): a newer category, with limited history
  • Costs: expense ratios, or fees and charges, reduce what you keep
Have a concern?Our service: escalation matrix · A fund, scheme or issue: its provider first · Still unresolved: SEBI SCORES or SMART ODR

How we help

  1. 1Step 1

    Listen

    We understand your goals, time horizon, holdings and comfort with risk.

  2. 2Step 2

    Explain options

    We set out options from regulated providers on cost, liquidity and risk.

  3. 3Step 3

    You decide, we coordinate

    Once you decide, we help with KYC, paperwork and onboarding.

  4. 4Step 4

    Review

    Supported holdings show in our app, and we review them as life changes.

You decide whether to invest, in what, and on what terms. How we are paid for each product is disclosed before you invest. See how we’re paid →

Common questions

Short answers to what families ask us most. For anything specific to your situation, talk to us.

Still have a question?Mon–Fri, 8:00 AM – 6:00 PM · Sat, 9:00 AM – 3:00 PM IST
Can I lose money in either?

Yes. Both are market-linked. A SIF’s value can fall, including when a short position moves against it; a PMS portfolio can fall, sometimes sharply, especially if concentrated.

Does the ₹10 lakh SIF minimum apply to each strategy?

No. It applies at PAN level, across all the SIF strategies of the same fund house. Accredited investors are exempt.

Can I move my existing shares into a PMS?

Often, yes. Many portfolio managers accept eligible securities you already hold towards the ₹50 lakh minimum, valued on the day of transfer. The manager may then sell some, which can have tax consequences.

Which is more tax-efficient?

It depends on the strategy and how often it trades. In a SIF, tax arises when you redeem; in a PMS, each sale inside your portfolio is taxed in your hands. Our income tax calculator can help you see the effect of capital gains.

Can NRIs invest?

Often, subject to FEMA and each fund house’s or manager’s terms. Some providers do not accept investors from certain countries. See our NRI guide.

Comparing SIF and PMS options?

We’ll set out the specific strategies, costs, liquidity and risks side by side. You decide.

Book a meetingContact us

SIF and PMS investments are subject to market risks. Some SIF strategies use derivatives and long-short positions. Read the ISID, Disclosure Document and client agreement carefully before investing.

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