PMS offers customised investment solutions tailored to individual financial goals and risk appetites. With a dedicated portfolio manager, investors benefit from expert strategies and focused management of a diversified portfolio of high-quality assets. PMS offers customised solutions for high-net-worth individuals. PMS in India has historically delivered 15-20% returns, though this depends heavily on the portfolio manager and market conditions. PMS is regulated by SEBI, ensuring transparency and accountability.

Minimum Investment: ₹50 lakh as mandated by SEBI.

Risks: Market volatility, manager dependency, and concentration risks in tailored portfolios.

Portfolio Management Services (PMS)

AIFs are specialized investment vehicles that cater to high-net-worth individuals seeking exposure to non-traditional assets, such as private equity, venture capital, or real estate. India’s AIF market crossed ₹7 lakh crore in 2024, driven by strong growth in private equity and infrastructure funds. They are ideal for experienced investors looking to diversify beyond conventional investments. AIFs cater to sophisticated investors seeking exposure to non-traditional assets like private equity, venture capital, and real estate. Returns can vary widely, but private equity AIFs have historically provided 18-25% annualised returns. 

Minimum Investment: ₹1 crore as mandated by SEBI.

Risks: High illiquidity, long lock-in periods, and higher risk due to unregulated asset classes.

Alternate Investment Funds (AIF)

NRI Demat accounts enable non-resident Indians to seamlessly invest in Indian markets. These accounts facilitate investments in fixed deposits, bonds, and mutual funds, ensuring compliance with Indian regulations while providing access to lucrative opportunities in the domestic market. NRIs contributed over ₹100 billion to Indian mutual fund investments in FY 2023. NRI demat accounts allow non-resident Indians to invest in a variety of Indian financial products while adhering to regulatory requirements. These accounts enable investments in fixed deposits, bonds, and mutual funds, providing returns similar to domestic counterparts.

Minimum Investment: ₹1,000 for fixed deposits, ₹10,000 for bonds, and ₹500 for mutual funds.

Risks: Currency risk and regulatory changes can impact investment returns for NRIs.

NRI Demat Accounts (Fixed Deposits, Bonds, Mutual Funds)

IAPs are gaining traction for their low-cost structure and real-time rebalancing features. IAPs are professionally managed portfolios designed to align with specific risk profiles and financial goals. Backed by advanced algorithms and real-time monitoring, they offer personalised solutions that adapt dynamically to market conditions. IAPs are algorithm-driven, actively managed portfolios designed for specific risk profiles. Depending on the strategy, these portfolios can deliver returns similar to mutual funds or PMS, typically in the 10-15% range.

Minimum Investment: ₹2.5 lakh.

Risks: Market risks and reliance on algorithmic models, which may not adapt to unforeseen events.

Intelligent Advisory Portfolios (IAP)

Mutual funds pool money from multiple investors to invest in a diversified portfolio of equities, bonds, or other securities. Managed by professional fund managers, they offer flexibility, risk diversification, and the potential for both short-term and long-term financial growth. Mutual funds diversify investments across multiple asset classes. Equity mutual funds in India have historically delivered 10-14% annualised returns, while debt funds yield 6-8%. Systematic Investment Plans (SIPs) in mutual funds hit a record ₹15,000 crore in monthly inflows in 2024, reflecting growing retail participation.

Minimum Investment: ₹500 for SIPs or ₹1,000 as a lump sum.

Risks: Market risks for equity funds, credit risks for debt funds, and liquidity risks for certain categories.

Mutual Funds

Insurance provides financial protection against life, health, or property risks. Returns are not the primary goal, but certain products like ULIPs and endowment plans offer 6-8% returns while providing coverage. India’s insurance penetration is steadily increasing, reaching 4.2% of GDP in 2023, reflecting growing awareness.

Minimum Investment: Premiums start as low as ₹500/month for term insurance.

Risks: Insufficient coverage, high fees, and lower returns compared to other investments for savings-oriented plans.

Insurance

Indian Equity

Investing in Indian equities allows you to participate in the growth of Indian companies by buying shares listed on the stock exchanges. This investment offers potential for capital appreciation and dividend income, making it suitable for those looking to build wealth over the long term. India's stock market is among the fastest-growing globally, driven by a young workforce, consumption, and robust economic reforms. Indian equities allow you to invest in the growth of Indian companies listed on exchanges like NSE and BSE. Over the last two decades, Indian equity markets (Nifty 50) have delivered an average annual return of 12-15%, though returns can vary widely based on market conditions.

Minimum Investment: You can start with as low as ₹500 by investing in fractional shares or equity mutual funds.

Risks: Market volatility, economic downturns, and sector-specific challenges can impact returns. Equity investments are subject to high risk but offer potential high rewards over the long term.

The US accounts for over 50% of global market capitalisation, making it a key diversification tool for Indian investors. US equity investments provide an opportunity to diversify globally by owning shares of globally renowned companies listed in the United States. This enables investors to benefit from exposure to mature, stable markets while hedging against domestic economic fluctuations. Investing in US equities gives you exposure to global giants like Apple, Amazon, and Tesla. Historically, the S&P 500 index has delivered an average annual return of 10-12% in USD over the past century.

Minimum Investment: Start with as low as $1 (₹85-100) by using fractional share platforms.

Risks: Currency fluctuations, geopolitical issues, and market volatility are primary risks. Returns can be impacted by USD-INR exchange rates for Indian investors.

U.S. Equity

Fixed deposits are one of the safest investment options, allowing investors to deposit a lump sum for a fixed period at a predetermined interest rate. FDs provide guaranteed returns and are perfect for preserving capital while earning a stable income. Fixed deposits provide a guaranteed return, typically ranging from 5-7% annually, depending on the bank and tenure. Fixed deposits are insured up to ₹5 lakh per account holder under the Deposit Insurance and Credit Guarantee Corporation (DICGC).

Minimum Investment: ₹1,000 in most banks.

Risks: Inflation risk is the biggest concern, as real returns may be low or negative during high inflation periods.

Fixed Deposit

Bonds are fixed-income instruments issued by corporations or governments, offering a steady interest income and the return of the principal amount upon maturity. They are ideal for risk-averse investors seeking stable returns with lower volatility compared to equities. Indian government bonds typically yield 6-8% annually, while corporate bonds may offer higher returns but carry more risk. Sovereign gold bonds (issued by the Indian government) have gained popularity as a safe and inflation-proof investment.

Minimum Investment: ₹10,000 is the typical minimum for government bonds; corporate bonds may require ₹1 lakh or more.

Risks: Credit risk, interest rate risk, and inflation can erode purchasing power. Government bonds are safer, while corporate bonds carry a higher default risk.

Bonds

Gold is deeply embedded in India’s economy and culture, serving as a traditional store of value and a hedge against inflation. India is the world’s second-largest consumer of gold, with annual demand averaging 700-800 metric tons. Investment options include physical gold, digital gold, Gold Exchange-Traded Funds (ETFs), and Sovereign Gold Bonds (SGBs). Over the last 10 years, gold in India has delivered average annual returns of 8-10%, with periods of significant outperformance during economic downturns or high inflation. Sovereign Gold Bonds (SGBs), issued by the Reserve Bank of India, offer an additional interest rate of 2.5% per annum on top of gold price appreciation, making them a secure and inflation-proof investment option.

Minimum Investment: Digital gold and Gold ETFs can be started with as little as ₹1, while Sovereign Gold Bonds typically require a minimum investment of ₹5,000.

Risks: Gold is relatively low-risk, but prices can be volatile due to global economic conditions, currency fluctuations, and demand-supply dynamics.

Gold

India's commodity market encompasses a diverse range of assets, including agricultural products, energy resources, and base metals such as copper, zinc, and aluminum. These commodities are traded on exchanges like the Multi Commodity Exchange of India (MCX) and the National Commodity and Derivatives Exchange (NCDEX). Investing in commodities offers diversification and a hedge against inflation. Returns on commodity investments vary widely based on the specific commodity and market conditions. For instance, base metals have experienced significant price fluctuations due to global demand and supply dynamics. Over the past decade, commodities have provided returns ranging from 5% to 15% annually, depending on the commodity and investment strategy. India is one of the world's largest consumers of base metals, with demand driven by industrialization, infrastructure development, and population growth. The country's consumption of base metals like copper and aluminum has been steadily increasing, reflecting its economic expansion. Investing in commodities and base metals can be a strategic addition to a diversified portfolio, offering exposure to sectors integral to India's economic growth.

Minimum Investment: Investors can start trading commodity futures with a margin amount, which is a fraction of the contract value. For example, trading in base metals like copper or zinc on the MCX may require a margin of ₹10,000 to ₹20,000, depending on the contract specifications.

Risks: Commodity investments are subject to market volatility, geopolitical events, and changes in global demand and supply. Price fluctuations can be significant, leading to potential losses. Additionally, commodities are influenced by factors such as weather conditions, government policies, and currency movements.

Commodities and Metals