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Investors and managers often ask which pooled vehicle fits their strategy. The answer turns on regulation, minimum ticket size, taxation and flexibility.
At a glance
- Mutual fund: highly regulated, retail-friendly, low minimums, daily liquidity, pass-through taxation.
- PMS: individual portfolios (not pooled), ₹50 lakh minimum, taxed in the investor's hands as if investing directly.
- AIF: pooled, ₹1 crore minimum, Category I/II enjoy pass-through, Category III generally taxed at fund level.
Choosing
If you need scale and a regulated brand for retail, a mutual fund fits. For bespoke high-net-worth mandates, PMS gives transparency and control. For alternative strategies — venture, private equity, private credit, long-short — an AIF is usually the right structure.
Download our gated AIF vs PMS vs MF Comparison from the AIF & Fund Management hub for the full side-by-side.
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