India's Top AIF & PMS Investment Consultant

Frequently Asked Questions About AIF

Any fund established or registered in India which is private pooled investment vehicle that raises funds from sophisticated investors, whether Indian or  foreign, for the purpose of investing in accordance with a stated investment policy for the benefits of its investors is called Alternative investment fund (AIF)

investors who want to diversify can choose alternative funds to invest in. All Indians including NRIs, PIOs and OCIs are eligible to invest in AIFs. However They must meet the eligibility requirements, which include a minimum capital of Rs 20 crore for each scheme and Rs 10 crore for angel funds. Each investor has to make a minimum investment of RS 1 crore or Rs 25 lakh (in case of AIF employees, directors and fund managers.)

An AIF that invests in enterprises, startups, social enterprises (SMEs), infrastructure or other sector/areas deemed socially or economically desirable by the government or regulatory authorities is a category I AIF.

AIFs that do not fall under categories I and III and do not lend other than to meet the day-to-day operational requirements and are permitted by the SEBI (Alternative investment funds) regulations, 2012 are category II AIFs.

Angel Funds require a minimum investment of INR 25 Million per investor. If the AIF is not an angel fund, the minimum investment amount per investor is INR 1 billion.

AIFs Trade in a variety of ways and use leverage, such as investing in listed or unlisted derivatives. Category III AIFs include hedge funds, PIPE funds and other types of funds

The documents required to open your AIF account are :

  • Account opening form
  • Address proof
  • identity proof
  • pan card copy
  • Relevant KYC prescribed by the regulator

The tax is paid at the fund level and it is after tax that goes back to the customer. AIF’s Income is taxed at the capital gains tax rate applicable to stocks and market-linked products and at the maximum marginal rate on income from other sources such as interest, dividends and processing fees.

A “fund of funds” is an investment strategy of holding a portfolio of other investment funds instead of investing directly in stocks, bonds or other securities

AIF management services can only be provided by entities with SEBI (Alternative Investment Funds) Regulations, 2012

The AIF platform enables investment by all Indian citizens whether resident or not. Non-resident Indians (excluding US and Canadian citizens) can invest in AIFs. unlike PMS, NRIs are not required to open a PIS account. However, accepting funds from both NRE and NRO accounts is dependent on funding structure.


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FAQ About Portfolio Management Services (PMS)

Portfolio Management services (PMS) refers to an investment portfolio of equities, fixed income, cash, debt structured products and other individual assets managed by a professional money manager and can be tailored to specific investment objectives.

Portfolio management services are often reserved for high net worth individuals, while mutual funds are available to a diverse group of investors. SEBI regulates mutual funds very strictly but portfolio management services are not as transparent as mutual funds.

A portfolio manager is a legal entity that advises, directs, manages a client’s portfolio of securities, assets or funds under the terms of a contract with the client

Portfolio management services can be offered only by the SEBI registered portfolio managers.

According to the SEBI rules, the minimum investment in the PMS scheme is now Rs 50 Lakhs for new investments. Additional investment at least Rs 10 lakh or more for existing customers. there is no more limit on investments in a portfolio account. we serve clients with a range of portfolio sizes and our relationship managers are well equipped to manage individual accounts with large assets under management (AUM)

In accordance with the portfolio management regulations imposed by SEBI, we cannot guarantee any specific return. However, the investment objective of each portfolio manager is to outperform benchmarks.

A PMS investor’s tax obligations are the same as for investments that have entered the capital market on their own. under the PMS scheme, each transaction is treated as an independent business and capital gains are applied to each transactions based on the holding period of the stock

Clients can withdraw their winnings at any time as long as they maintain the established Rs. The Minimum amount for PMS investors is Rs 5 lakh

In a discretionary portfolio management services, the portfolio manager handles each client’s assets and securities separately and independently, according to the client needs. The portfolio manager in the non-discretionary portfolio management service administers the money according to the client’s instruction.

To invest in secondary markets in India, NRIs must obtain approval from the reserve bank of India (RBI). To do this, a designated bank account must be opened under the portfolio investment scheme (PIS) and all transactions related to investment in secondary markets must be processed through that account

Yes, NRIs can invest in PMS through NRE or NRO accounts. NRI customers have some additional compliance/documentation requirements. our relationship manager will assist NRI clients with this document.


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