Sebi mulls direct plans for AIFs, PMS to help investors save on expenses

The minimum ticket size for investing in AIFs is currently Rs 1 crore and for that in PMS is Rs 25 lakh. Both PMS and AIFs typically charge a fixed as well as variable fee based on the performance

The Securities and Exchange Board of India (Sebi) is toying with the idea of introducing direct plans for alternative investment funds (AIFs) and portfolio management schemes (PMS), three people familiar with the matter said. 

The move could help investors save on expenses and indirectly benefit family offices and independent advisors who rely predominantly on a fee-based model. Direct plans exclude the commission or fee paid to distributors, resulting in lower expenses and schemes with higher net asset values (NAVs). At present, only mutual funds (MFs) offer such plans. 

“A lot of clients and family offices are asking for direct plans,”