A SIF is a pooled fund regulated under the SEBI Mutual Funds Regulations; a portfolio management service (PMS) holds securities in the investor's own demat account under the SEBI PMS Regulations 2020. This page sets the two side by side; it describes them and does not rank them.
The short answer
In a SIF you own units of a pooled strategy; in a PMS the securities are held in your own demat account and managed for you. A SIF’s minimum is ₹10 lakh, a PMS’s ₹50 lakh. SIF gains are taxed mostly when you redeem, while PMS gains are taxed in your hands each time the manager sells.
Sources: SEBI FAQs on SIFs, Part A, 22 Sep 2026; SEBI (Portfolio Managers) Regulations, 2020
The general rules for each structure, from our four-way comparison. Individual schemes and portfolios set their own terms in their offer documents.
| Dimension | SIF | PMS |
|---|---|---|
| Minimum ticket | ₹10 lakh (accredited investors exempt) | ₹50 lakh |
| Regulatory wrapper | SEBI MF Regulations 2026 | SEBI PMS Regulations 2020 |
| Pooled vs Separate | Pooled | Separate demat per investor |
| Long-short / unhedged | Yes — ≤25% NAV | Yes (no 25% cap of the SIF kind) |
| Liquidity | Daily / weekly / monthly / interval | T+2 to T+5 typical |
| Disclosure | Bi-monthly portfolio + ISID | Monthly + on-demand |
| Tax — Equity (≥65%) | LTCG 12.5% (>1y) STCG 20% | Capital gains as holdings are sold: STCG 20%, LTCG 12.5% |
| Tax — Hybrid (<65% eq) | LTCG 12.5% (>12m if listed, >24m if unlisted) STCG slab | Per holding sold (equity and debt rules apply separately) |
| Tax — Debt | Slab rate | Interest at slab; gains per holding sold |
| Fund-level tax | Nil (mutual fund exemption) | N/A (pass-through) |
| Expense cap (base) | 2.10% on first ₹500 Cr (equity), falling by slab | 1–2.5% mgmt + 10–20% perf |
| Performance fee | Optional (rare) | Yes |
Each point restates a row of the table above. These are features of each structure, not a judgement on which is better; whether either suits a particular investor is assessed one to one.
₹10 lakh for a SIF (accredited investors are exempt); ₹50 lakh for a PMS.
A SIF is pooled: investors buy units in a strategy alongside others. A PMS uses a separate demat account per investor, with the securities in the investor's own name, so the portfolio can be customised, for example with exclusion lists or individual tax-loss harvesting.
A SIF caps unhedged shorts at 25% of net assets. A PMS has no SIF-style 25% cap; its limits come from the PMS Regulations and the client agreement.
A SIF pays no tax at the fund level (the mutual fund exemption); the investor is taxed on the units. A PMS is pass-through: gains are taxed in the investor's hands as each holding is sold.
A SIF's base expense ratio is capped at 2.10% on the first ₹500 crore for equity-oriented strategies (1.85% for others), with trading costs on top, and performance fees are optional and rare. A PMS typically charges a management fee plus a performance fee.
SIF redemption may be daily, weekly, monthly or at intervals, with bi-monthly portfolio disclosure and an ISID per strategy. A PMS typically pays out in T+2 to T+5 and discloses monthly and on demand.
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.
A SIF, like a mutual fund, pays no tax at the fund level (the mutual fund exemption); the investor is taxed on the units according to the asset mix and holding period. A PMS is pass-through: the investor holds the securities directly, so each sale is the investor's own capital gain. Post-tax results depend on the assumed return, holding period and the investor's own tax position.
Our post-tax calculator lets you set your own assumptions; its results are illustrative only. For the SIF rules in detail, see SIF taxation. Tax rules change, so consult a tax professional for your own case.
₹10 lakh for a SIF (accredited investors are exempt) and ₹50 lakh for a PMS.
A SIF pays no tax at the fund level (the mutual fund exemption) and the investor is taxed on the units. A PMS is pass-through: gains are taxed in the investor's hands as each holding is sold — for listed equity, STCG at 20% and LTCG at 12.5%.
No. A SIF is pooled, so every investor in a strategy holds the same portfolio through units. A PMS holds securities in the investor's own demat account, which allows customisation such as exclusion lists.
Yes. A SIF may take unhedged short positions of up to 25% of net assets; a PMS has no SIF-style 25% cap; its limits come from the PMS Regulations and the client agreement.
No. A SIF is a mutual fund product: investors hold units of a pooled strategy and do not receive an individually managed portfolio. SEBI describes it as bridging the gap between mutual funds and PMS.
In a SIF the fund holds the securities, under the same trustee and custodian framework as a mutual fund, and you hold units. In a PMS the securities are held in a demat account in your own name.
It depends on the strategy: equity strategies may offer daily redemption, hybrid strategies at most twice a week and debt strategies at most weekly, and a notice period of up to 15 working days may apply. Each strategy states its terms in its offer document.