AIF vs PMS vs Mutual Fund FoF: Choosing a GIFT City Structure

Once you've decided to invest through GIFT City, the next decision is which structure. The three most-compared options are the AIF (Alternative Investment Fund), PMS (Portfolio Management Services), and Mutual Fund FoF (Fund of Funds) — and the right choice usually comes down to ticket size, how hands-on you want to be, and how comfortable you are with liquidity constraints.

Mutual Fund FoF: simplicity at a lower ticket

A GIFT City Mutual Fund FoF is a feeder structure — your money channels into an underlying scheme, much like a fund-of-funds works domestically. Entry tickets are typically the lowest of the three (from roughly $5,000, though this varies by FME), pooled and professionally managed with no ongoing decision-making required from you. This is generally the most accessible structure for an investor new to GIFT City.

AIF: for less standardised, higher-conviction strategies

An AIF is a pooled vehicle built for strategies that don't fit neatly into a mutual fund wrapper — concentrated equity bets, credit strategies, structured products. Entry tickets are meaningfully higher (commonly from around $150,000, with some exceptions), and liquidity terms are usually less flexible, with lock-in periods common. AIFs suit investors who specifically want exposure to the strategy's differentiation, not just diversified market exposure.

PMS: customisation and discretion

Portfolio Management Services give you an individually held portfolio managed to a mandate, rather than pooled units in a fund. Minimum tickets typically start around $75,000. PMS suits investors who want more visibility into and influence over their actual holdings, and who are comfortable with a more concentrated, discretionary approach than a pooled fund offers.

How to actually decide

Start with your ticket size — it often narrows the choice on its own. Then weigh how much you want a diversified, hands-off structure (FoF) against wanting a specific strategy (AIF) or individual portfolio customisation (PMS). Liquidity terms differ meaningfully across all three, so always confirm redemption terms and lock-ins with the specific FME before committing.

See the full comparison table with ticket sizes and investor fit on our Funds Explained page, or talk to Anup about which structure suits your situation.

Ticket sizes and terms are indicative and vary by Fund Management Entity. This article is educational only and is not investment advice.