How much more could your portfolio keep?

How we calculate this

The four wrappers carry materially different tax and cost structures. Here is exactly how each post-tax CAGR is computed:

• SIF (equity / hybrid ≥65% eq): 12.5% LTCG on gains held >12 months. No performance fee. Regular-plan TER varies by fund — see the live figure on the Fund UniverseResearch ToolkitLaunch Monitor page (the model uses a representative, competitively-priced level).
• SIF (hybrid <65% eq): 12.5% LTCG on gains held >12 months if the units are listed (>24 months if unlisted). No performance fee.
• SIF (debt): Slab-rate tax (same treatment in both regimes for an HNI).
• Mutual Fund: 12.5% LTCG (equity ≥65%, >12 mo). Regular-plan equity-MF TER ~1.5–2%. Same tax bucket as an equity SIF — the trade-off is no long-short capability.
• PMS: The securities sit in your own demat account, so gains are taxed in your hands as capital gains when the manager sells, not at exit: for listed equity, 20% short-term and 12.5% long-term (above ₹1.25 lakh a year). The model assumes each year’s gains are realised that year, half short-term and half long-term. 1.5% management fee + 15% performance fee on returns above a 6% hurdle.
• AIF Cat-III: Fund-level taxation at slab + surcharge. 2% management + 15% performance fee on the entire return.

The formula assumes a single hold-and-exit at the end of the period. Real portfolios churn — which makes the wrapper differential more pronounced for slab-rate vehicles, not less. Calculator output is illustrative; actual outcomes depend on fund-specific cost, churn, sequence of returns, and individual tax circumstances.

Which tax regime — and why it matters here

India's new tax regime is the default since FY 2023-24, and most HNIs are now on it. The single difference that matters for this calculator is the surcharge cap: under the new regime the maximum surcharge is 25%, so the top marginal rate is 39% (30% × 1.25 × 1.04 cess). The old regime retains a 37% surcharge band above ₹5 crore of income, taking the top rate to 42.74%. Toggle the regime above to apply the correct effective rate to the slab-taxed vehicle (AIF Cat-III); SIF, MF and PMS gains use capital-gains rates regardless of regime.

Why the gap is structural

SIFs inherit the mutual fund exemption from fund-level tax (Schedule VII of the Income-tax Act, 2025; formerly section 10(23D)) — gains compound untaxed inside the fund and are only taxed at investor-level redemption at LTCG rates. PMS gains are taxed in your hands as capital gains year by year as holdings are sold. AIF Cat-III is taxed at the fund level at slab plus surcharge. Over a 10-year hold for a top-bracket investor, that difference against AIF Cat-III can compound to roughly ₹70–80 lakh per crore of allocation (against PMS the model gap is smaller, around ₹30 lakh, because PMS gains are taxed at capital-gains rates as they are realised) — the exact figure depends on your regime, bracket and the funds chosen. This is an illustrative model, not a forecast.