In recent years, Indian investors have increasingly explored alternative investment options beyond traditional mutual funds. Among the most popular choices for high-net-worth individuals (HNIs) and sophisticated investors are Portfolio Management Services (PMS) and Alternative Investment Funds (AIFs). Understanding pms returns comparison and identifying the best aif funds in india can help create a diversified and effective investment strategy.
What Is PMS and Why Compare Returns?
Portfolio Management Services (PMS) are personalized investment solutions where a professional portfolio manager builds and manages a tailored portfolio for each investor. Unlike mutual funds, PMS investments are held directly in the investor’s name, offering greater transparency and customization. Because of this bespoke approach, comparing returns across different PMS strategies is essential to identify consistent performance over multiple time horizons.
For example, several PMS funds have delivered notable returns over longer periods. Funds like Green Lantern Capital Growth and Stallion Core Fund have shown strong 3-year performance, highlighting how disciplined stock selection and concentrated portfolios can generate alpha. Such pms returns comparison helps investors see which strategies balance short-term gains with reliable long-term growth.
Why AIFs Are Gaining Traction
Alternative Investment Funds (AIFs) in India allow investors to access non-traditional assets, strategies, and market inefficiencies not typically available through mutual funds or PMS. AIFs are regulated by SEBI and divided into categories — typically Category I (venture capital, SME funds), Category II (private debt and credit), and Category III (hedge, long-short equity strategies).
What makes AIFs attractive is their ability to deliver differentiated returns. Some of the best aif funds in india have demonstrated resilience and strong performance across market cycles. For instance, Category II funds like IFMR Fimpact Long Term Credit Fund and Vivriti’s Emerging Corporate Bond Fund delivered positive returns in January 2025, offering both growth and income potential. In the Category III space, long-only AIFs and dynamic equity strategies can compound wealth effectively, while long-short funds provide downside protection in volatile markets.
PMS Returns Comparison vs AIF Performance
When conducting a pms returns comparison against AIF returns, it’s clear that both products cater to different core objectives:
PMS focuses on curated equity portfolios with potential for strong upside over medium to long horizons.
AIFs provide broader diversification, including credit, private markets, and tactical strategies that can outperform benchmarks in specific conditions.
Investors should assess their risk tolerance, investment horizon, and liquidity needs before choosing between PMS and AIFs. Consulting with financial advisors can further clarify which of the best AIF funds in India or PMS strategies align with individual goals.