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PMS & AIF

Are you looking to grow your money by investing in securities beyond mutual funds? Well, look no further than Alternative Investment Funds (AIFs) and Portfolio Management Services (PMS). These high-risk instruments have recently gained immense popularity among sophisticated investors for wealth creation.

What is PMS?

PMS is a tailored investment portfolio in fixed income instruments, individual securities, equity, and structured products. It caters to the investment objectives of high-net-worth individuals with a minimum ticket size of Rs. 50 lakhs.

There are two types of PMS

1. Discretionary PMS:

It is Discretionary when the fund manager is empowered to take decisions on behalf of the investor.

2. Non-Discretionary PMS:

It is non-Discretionary when the fund manager only offers suggestions to the investor, and the investor takes the final decision.

By doing this, he made a profit of Rs 50 per share i.e., Rs. 50,000 profits within a few hours.

What are Alternative Investment Funds?

AIF's are pooled investments for investing in hedge funds, venture capital, futures, and private equity. Based on their investment strategies, AIFs, are classified into three categories.

01

These funds are invested in small businesses, start-ups, social ventures, early-stage ventures, angel funds, etc., with superior growth potential.

02

This category includes investments in Private Equity (PE) funds, fund of funds, and debt instruments.

03

This AIF aims at generating short-term returns by employing diverse and complex trading strategies. Category-III funds can include hedge funds and Private Investment in Public Equity (PIPE) Funds.