Sheet 02 — First Principles
Start with the fundamentals.
Six short reads that make everything else in this drawing set obvious — written the way we would explain it across a table. No jargon survives past the first sentence.
Reference — the four structures, side by side
| PMS₹50 L min | AIF₹1 Cr min | Mutual Funds₹100–5,000 entry | SIF₹10 L min | |
|---|---|---|---|---|
| Structure | Own demat account — you hold the shares | Unit-based pooled fund | Unit-based pooled fund | Unit-based pooled fund |
| Investment universe | Equities, fixed income, cash, structured products, commodities | Equities, fixed income, structured products, commodities, derivatives, unlisted | Equities, fixed income, commodities | Equities, fixed income, derivatives, commodities |
| Transparency | High — every holding visible | High — periodic fund reporting | High — monthly portfolio disclosure | High — scheme disclosure norms |
| Liquidity | High — exit typically in days | Moderate to locked, by category | High — daily NAV | Moderate — scheme-defined windows |
| Typical investor | HNIs, family offices | HNIs, institutions | Retail to HNIs | Affluent+ (₹10 L threshold) |
| Customisation | Possible — portfolio can be tailored | Not possible | Not possible | Not possible |
| Fees | Fixed, or fixed + performance | Fixed, or fixed + performance | Fixed only (TER) | Fixed only |
| Structural advantage | Concentrated bets, incl. small/microcap; direct ownership | Reaches private markets and hedged strategies MFs cannot | Lowest cost, highest access | Hedged strategies at MF-style tax and a ₹10 L entry |
| Tax character | Churn taxed in your ledger every year | Cat I/II pass-through; Cat III taxed inside the fund | Taxed only on your redemption | Taxed only on your redemption (equity-oriented) |
| Manager continuity | Very high — often owner-managed boutiques | Very high — often owner-managed | Varies — team churn is common | Varies — new category, young teams |
Structural comparison, simplified for conversation. Category rules per SEBI; individual schemes vary.
Sheet 03 — Material Specifications
The thirteen materials of a modern portfolio.
From the familiar to the frontier — what each structure is, the job it does, what it costs to enter, and how the taxman treats it.