In today’s evolving investment landscape, investors have more sophisticated options than ever before. Among the most talked‑about are Specialised Investment Funds (SIFs), Mutual Funds (MFs), and Portfolio Management Services (PMS). Let’s check how these products compare with each other in below table.
SIF vs Mutual Funds vs PMS
| Feature | Specialised Investment Funds (SIF) | Mutual Funds (MFs) | Portfolio Management Services (PMS) |
|---|---|---|---|
| RegulatoryBI (Mutual Funds Framework | SE) Regulations, 1996 – SIF framework amendments | SEBI (Mutual Funds) Regulations, 1996 | SEBI (Portfolio Managers) Regulations, 2020 |
| Minimum Investment | ₹10 lakh per investor (PAN‑level, across all SIF strategies in an AMC) | ₹500–₹5,000 (varies by scheme) | ₹50 lakh |
| Target Investors | HNIs, affluent retail, family offices, institutions | Retail & HNI | HNIs & Ultra‑HNIs |
| Strategy Flexibility | High – can use derivatives (up to 25% unhedged shorts), sector/thematic focus, long‑short equity, multi‑asset | Limited – primarily long‑only equity/debt, derivatives only for hedging | Very High – bespoke strategies, leverage, unlisted securities |
| Liquidity / Redemption | Flexible – can be daily, weekly, monthly, or quarterly (per ISID) | Generally daily for open‑ended schemes | As per agreement; usually less liquid |
| Transparency/Tracking | Monthly NAV & Transparency portfolio disclosure; detailed ISID with risk, scenario analysis | Daily NAV & monthly factsheet | Periodic reporting as per mandate; less public |
| Risk Profile | Higher – due to leverage, concentration, derivatives | Moderate – depends on scheme type | Higher – due to concentrated portfolios, leverage |
| Taxation | Same as MFs: Equity LTCG @ 12.5% (>12m), Debt – slab rate, Other – LTCG @ 12.5% (>24m) | Same as SIFs | Gains taxed as per investor tax bracket, may vary |
| Expense Structure | Max TER 2.25% (equity) / 2.0 no performance fees% (debt/hybrid) – | Same TER caps fee + performance as SIFs | Management fee (profit‑sharing) |
| Customisation | Moderate – investor chooses from AMC‑defined strategies | Low – standardised schemes | High – fully tailored portfolios |
💡 Key insight:
SIFs are mutual‑fund regulated but PMS‑style in flexibility, making them a strategic “middle ground” for investors seeking advanced strategies without PMS‑level ticket sizes.
SIFs, Mutual Funds, and PMS each serve a distinct purpose in the wealth‑building journey.
The right choice depends on factors like your investable capital, risk appetite, desired level of involvement, and strategy preference.