New Delhi, March 12 -- Different investment products cater to the distinct needs of various individuals. Mutual funds and portfolio management services (PMS) are examples of such products. While mutual funds have a ticket size of as low as Rs.100, PMS schemes require a minimum investment of Rs.50 lakh, mainly catering to high-net-worth individuals (HNIs).

By the end of 2024, the mutual fund industry had assets under management (AUM) of Rs.66.9 trillion, while the PMS industry had a combined AUM of Rs.37.1 trillion. The market regulator allows more flexibility to PMS fund managers totake aggressive bets with their clients' portfolios, potenially delivering higher returns than mutual funds which operate under stricter rules.

The result is...