PMS vs AIF: how the two SEBI products differ
On PMS vs AIF, both are SEBI-regulated products for larger investors, but the structure is different. A PMS, or portfolio management service, runs a portfolio in your own demat account, so you own the securities directly. An AIF, or Alternative Investment Fund, pools money from many investors into a common fund, and you hold units of that pool. This guide compares PMS vs AIF on structure, minimums, strategy, and disclosure. It is not investment advice.
Definition
PMS versus AIF
are both SEBI-regulated products. A PMS runs a segregated portfolio in the client's own demat account with a 50 lakh rupee minimum. An AIF is a privately pooled fund where investors hold units, with a 1 crore rupee minimum and three categories. Source: SEBI.
How do PMS and AIF differ in structure?
The clearest split is segregated versus pooled. In a PMS, the securities sit in your own demat account under your name, and the portfolio manager runs it for you alone. In an AIF, your money goes into a shared fund alongside other investors, and you hold units that represent your slice of the pool. That structural difference drives most of the others: minimums, strategy latitude, and how each one is taxed and reported.
PMS vs AIF at a glance
| What to check | PMS | AIF |
|---|---|---|
| Structure | Segregated account in your own demat | Pooled fund, you hold units |
| Minimum investment | 50 lakh rupees | 1 crore rupees, 25 lakh for fund and manager staff, no floor for an accredited investor or in an angel fund |
| Rulebook | SEBI (Portfolio Managers) Regulations 2020 | SEBI (AIF) Regulations 2012 |
| Strategy latitude | Discretionary PMS limited to listed securities, MF units, money market | Category III can use leverage and derivatives |
| Public portfolio | No | No |
50 lakh vs 1 crore rupees
Minimum investment: 50 lakh rupees for a PMS against 1 crore rupees for an AIF
Source: SEBI (Portfolio Managers) Regulations 2020; SEBI (AIF) Regulations 2012
Which one can you see inside?
Neither, if you mean a public per-holding portfolio. A PMS reports to its client and to SEBI; an AIF reports to its investors and to SEBI. Both are private by design. That is the opposite of the disclosure regimes Flock reads, where a mutual fund publishes its full portfolio monthly and a US manager files a 13F.
So on PMS vs AIF, the choice comes down to a segregated account you own directly versus units of a pooled fund, at a 50 lakh versus 1 crore rupee ticket. Flock works from the public filing record, and what any disclosure means for your money is your call to make.
Frequently asked questions
What is the main difference between PMS and AIF?
A PMS runs a segregated portfolio held in your own demat account, so you own the securities directly. An AIF pools money from many investors into a common fund, and you hold units of that pool. One is an individual account, the other is a shared vehicle. Source: SEBI.
Which has a higher minimum, PMS or AIF?
An AIF has the higher floor. A PMS requires 50 lakh rupees per client under the 2020 rules, while an AIF requires 1 crore rupees per investor, dropping to 25 lakh rupees for employees and directors of the fund or its manager. The AIF floor does not apply to an accredited investor, and angel funds sit outside it entirely: they may raise funds only from accredited investors and no minimum investment applies. Source: SEBI (Portfolio Managers) Regulations, 2020, and SEBI (Alternative Investment Funds) Regulations, 2012, regulations 10(c), 19B(2) and 19D, as amended to 14 July 2026.
Are PMS and AIF holdings public?
No, neither publishes a per-holding portfolio to the open market. A PMS reports to its client and to SEBI; an AIF reports to its investors and to SEBI. Both are private by design, unlike a mutual fund or a 13F filer. Source: SEBI.
Can an AIF use leverage and derivatives?
Category III AIFs can use leverage and derivatives within SEBI limits, which is why they house hedge-fund-style strategies. A discretionary PMS is generally limited to listed securities, mutual fund units, and money market instruments. Source: SEBI.
Flock tracks these filings, sourced, dated, and linked back to the original. See what smart-money entities disclosed, without the guesswork about what it means.
Disclosures shown are public regulatory filings. Data may be delayed or incomplete. Smart-money entities may no longer hold positions shown. Not investment advice.