Portfolio Management Services & Alternative Investment Funds

Overview

What is PMS / AIF?

Portfolio Management Services (PMS) offer direct ownership of a personalised stock or bond portfolio managed by a SEBI-registered portfolio manager. Each client's portfolio is individually held and managed, unlike mutual funds where investors pool resources.

Alternative Investment Funds (AIFs) cover a broader spectrum: private equity, venture capital, real estate, hedge funds and structured credit — regulated investment vehicles for sophisticated investors seeking returns uncorrelated with public markets.

Individually managed portfolio with direct security ownership in PMS
Access to private equity, venture capital and structured products via AIF
Higher return potential from concentrated, conviction-based strategies
Full transparency into each holding with regular reporting
Tax efficiency through direct ownership and tax-loss harvesting in PMS
Diversification beyond public markets into alternative asset classes

Who Should Consider This?

PMS is suitable for investors with a minimum corpus of ₹50 lakh who seek a personalised, actively managed equity portfolio. AIF (Category I, II, III) is appropriate for accredited investors with ₹1 crore+ looking for private market exposure, higher returns or uncorrelated assets.

Key Features

What We Offer

A comprehensive set of features designed to deliver the best outcomes for your financial goals.

PMS Strategy Selection

Evaluating PMS strategies — large-cap, multi-cap, sectoral, quant — across performance, manager track record, drawdown history and fee structure.

AIF Category Navigation

Guidance on Category I (infrastructure, SME funds), Category II (private equity, debt) and Category III (hedge funds, long-short) based on your risk appetite and liquidity needs.

Due Diligence Framework

Comprehensive evaluation of fund manager credentials, investment thesis, team stability, portfolio concentration and fee-adjusted returns.

Fee Structure Analysis

Transparent breakdown of management fees, performance fees and hurdle rates to understand true cost and net return impact.

Portfolio Integration

Ensuring PMS/AIF allocations complement your existing mutual fund and direct equity holdings without unintended overlap.

Liquidity Planning

Understanding lock-in periods, exit windows and redemption terms — matching illiquid allocations to your long-term capital.

Why Nivesh Kendr

Your Trusted Partner for PMS / AIF

We go beyond product selection — our advisory is built on understanding your complete financial picture and placing your goals at the centre of every decision.

HNI-Focused Expertise

Dedicated advisory for high-net-worth clients navigating complex, sophisticated investment products.

Deep Manager Research

We go beyond marketing materials — interviews, portfolio analysis and peer benchmarking for every manager.

Conflict-Free Advice

Our recommendations are based on suitability for your portfolio, not distribution incentives.

Full Transparency

Complete visibility into fees, portfolio holdings, performance attribution and all charges.

Tax-Optimised Structures

Guidance on tax treatment of PMS gains, AIF distributions and optimal holding structures.

Ongoing Oversight

Regular performance reviews, manager meetings and reallocation advice as strategies evolve.

FAQ

Frequently Asked Questions

SEBI mandates a minimum investment of ₹50 lakh for Portfolio Management Services. This ensures PMS remains accessible to investors with sufficient capital to absorb the higher concentration risk of individual stock portfolios.

In PMS, you directly own the underlying securities in a demat account in your name. There is no pooling with other investors. This enables direct tax-loss harvesting, full customisation and higher transparency. Mutual funds pool all investor money.

Category I includes social venture funds, infrastructure funds and SME funds with government/regulatory policy focus. Category II includes private equity, debt funds and real estate funds. Category III includes hedge funds and funds using complex trading strategies.

Yes. In PMS, since you directly own securities, each buy/sell transaction is a taxable event. Short-term and long-term capital gains rules apply per transaction. This requires careful tax planning — which we assist with.

Most PMS strategies charge a fixed management fee (1–2.5% p.a.) plus a profit share (10–20%) above a hurdle rate. Understanding the fee impact on net returns is critical — we compute this transparently.

Category II AIFs typically have a 3–5 year lock-in as they invest in illiquid private assets. Category III AIFs may have shorter lock-ins or be open-ended. We match lock-in periods to your long-term capital position.

PMS managers provide regular portfolio statements, performance reports and quarterly reviews. We provide an additional layer of oversight and ensure reporting transparency on your behalf.

PMS / AIF