A side-by-side matrix of four regulated investment vehicles across ticket size, regulation, taxation, liquidity, short positions, disclosure and cost. Each vehicle is built differently; this page describes those differences and does not rank the vehicles.
One comparison at a time: SIF vs Mutual Fund · SIF vs PMS · SIF vs AIF Category III
The SIF column is highlighted because this site covers SIFs; the highlight is a reading aid, not a preference. Rows show the general rules for each vehicle; individual schemes and portfolios set their own terms in their offer documents.
| Dimension | Mutual Fund | SIF | PMS | AIF Cat-III |
|---|---|---|---|---|
| Minimum ticket | ₹100–₹500 | ₹10 lakh (accredited investors exempt) |
₹50 lakh | ₹1 crore |
| Regulatory wrapper | SEBI MF Regulations 2026 | SEBI MF Regulations 2026 | SEBI PMS Regulations 2020 | SEBI AIF Regulations 2012 |
| Pooled vs Separate | Pooled | Pooled | Separate demat per investor | Pooled |
| Long-short / unhedged | Hedging and rebalancing only | Yes — ≤25% NAV | Yes (no 25% cap of the SIF kind) | Yes (no 25% cap; leverage within SEBI's limits) |
| Liquidity | Daily (most) | Daily / weekly / monthly / interval | T+2 to T+5 typical | Lock-in 1–3 yrs typical |
| Disclosure | Monthly portfolio | Bi-monthly portfolio + ISID | Monthly + on-demand | Quarterly |
| Tax — Equity (≥65%) | LTCG 12.5% (>1y) STCG 20% |
LTCG 12.5% (>1y) STCG 20% |
Capital gains as holdings are sold: STCG 20%, LTCG 12.5% |
Slab rate (Cat-III, fund-level) |
| Tax — Hybrid (<65% eq) | LTCG 12.5% (>2y) | LTCG 12.5% (>12m if listed, >24m if unlisted) STCG slab |
Per holding sold (equity and debt rules apply separately) | Slab rate |
| Tax — Debt | Slab rate | Slab rate | Interest at slab; gains per holding sold | Slab rate |
| Fund-level tax | Nil (mutual fund exemption) | Nil (mutual fund exemption) | N/A (pass-through) | Cat-III: at fund level |
| Expense cap (base) | 2.10% on first ₹500 Cr (equity), falling by slab | 2.10% on first ₹500 Cr (equity), falling by slab | 1–2.5% mgmt + 10–20% perf | 1.5–2.5% + 15–20% perf |
| Performance fee | No | Optional (rare) | Yes | Yes |
The same facts as the matrix, read vehicle by vehicle. Whether any of them is appropriate for a particular investor depends on that investor's circumstances and is assessed one to one, not on this page.
Minimum investment of ₹100–₹500, with SIPs available. Regulated under the SEBI Mutual Funds Regulations 2026. Most schemes offer daily liquidity and disclose portfolios monthly. Derivatives are used for hedging and portfolio rebalancing only. No tax at the fund level (the mutual fund exemption); tax is charged in the investor's hands.
Minimum investment of ₹10 lakh (accredited investors are exempt). Regulated under the SEBI Mutual Funds Regulations 2026, as a separate category. Can take unhedged short positions of up to 25% of net assets. Redemption may be daily, weekly, monthly or at intervals, depending on the strategy. Bi-monthly portfolio disclosure, with an ISID for each strategy. Base expense ratio capped at 2.10% (equity-oriented, first ₹500 crore), plus trading costs; performance fees are optional and rare. Taxed on the same basis as mutual funds.
Minimum investment of ₹50 lakh. Regulated under the SEBI PMS Regulations 2020. Each investor has a separate demat account, so securities are held in the investor's own name and the portfolio can be customised. No SIF-style 25% cap on short positions. Liquidity typically T+2 to T+5; disclosure monthly and on demand. Fees typically combine a management fee and a performance fee. Tax treatment is shown in the matrix above.
Minimum investment of ₹1 crore. Regulated under the SEBI AIF Regulations 2012. Pooled, with no SIF-style 25% cap on short positions. Lock-ins of 1–3 years are typical, portfolios are disclosed quarterly, and fees typically combine a management fee and a performance fee. Category III AIFs are taxed at the fund level.
Mutual funds and SIFs pay no tax at the fund level (the mutual fund exemption); tax is charged in the investor's hands, and the treatment depends on the asset mix and the holding period. A PMS is pass-through: the investor holds the securities directly. A Category III AIF is taxed at the fund level. The tax rows in the matrix above summarise each case.
Mutual funds and SIFs are subject to the same base expense ratio caps (2.10% on the first ₹500 crore for equity-oriented strategies (1.85% for others), lower as assets grow, with trading costs on top), and SIF performance fees, though permitted, are rarely used. PMS and AIF Category III typically charge a management fee plus a performance fee; the TER and performance-fee rows in the matrix show typical ranges. The actual fees for any scheme or portfolio are set out in its offer documents or client agreement.
The SIF framework sets limits that PMS and AIF Category III do not have. These are features of each structure, not a judgement on which is better.
SIF caps unhedged shorts at 25% of net assets. PMS and AIF Cat-III have no such 25% cap.
SIF is pooled: investors buy units in a strategy alongside other investors. PMS uses a separate demat account with individual stocks in the investor's name, which allows customisation such as exclusion lists and individual tax-loss harvesting.
As of 6 November 2026, 37 live SIF strategies exist across 18 AMCs — still far fewer than the hundreds of PMS and AIF strategies. Choice keeps widening as more houses (HDFC, DSP, Nippon, Axis) file with SEBI.