Big wealth managers aren’t chasing sky-high stock picks. They chase downside protection and professional oversight, often via PMS and AIF. Retail investors, by contrast, lean on Mutual funds and ELSS to grow steadily.
Professional management and downside protection — In practice, PMS and AIF deploy dedicated analysts, hedging, and multi-asset diversification to shield capital. The aim isn’t just growth; it’s risk control. [1]
Access and scale: who can participate — Rules from SEBI shape access: AIF typically requires a minimum of 1 crore; entry remains tight until you hit larger sums—institutions with 100 crores+ think differently. [1]
A sample fitment — A commonly cited mix for large portfolios is 50% Hybrid Funds, 25% Debt, 15% Equity, 10% Gold and Silver, routed through Mutual funds or tailor-made vehicles. [1]
Retail route: ELSS and compounding — Retail paths rely on ELSS and other Mutual funds to capture compounding over years. Discussions surface about achieving 10% annual growth versus the 2-3% observed with ELSS in some scenarios. [2]
Bottom line: wealth level, risk tolerance, and the desire for professional oversight drive the choice between PMS/AIF and retail ELSS/Mutual funds. [1][2]
References
HOW DO BIG WEALTH INVEST IN THE MARKET?
Examines how rich avoid direct stock picking via PMS/AIF and mutual funds, emphasize downside protection, diversification, and professional management strategies
View sourceMutual funds question
Discussion about mutual funds and ELSS, 10% annual returns, compounding proofs, seeking journeys and examples from Indian investors over time.
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