---
title: "Ways to Own a Strategy in India | RupeeCase Learn"
description: "The five ways to own one strategy in India, mutual fund, SIF, PMS, AIF or your own demat, with minimum, cost, tax, custody and exit side by side."
source_url: "https://www.rupeecase.com/learn/path-6/module-6-10-ways-to-own-a-strategy"
---

[Path 06 10 of 10](/learn/path-6/)Ways to Own a Strategy in India[Path 06](/learn/path-6/)

You have a rule you trust: rank stocks on momentum, hold the top 50, reset every fortnight. India gives you five ways to own that one rule, and they are not interchangeable. The vehicle decides the smallest cheque you can write, what you pay, who holds the shares, how the tax falls and how fast you can leave.

The rulebook moved while most people were not looking. [SEBI](/learn/glossary#sebi) opened the Specialized Investment Fund (SIF) lane in 2025 with a ₹10 lakh minimum, replaced the mutual fund rules on 1 April 2026 and approved a new portfolio manager rulebook on 24 September 2026. Here are the five routes side by side, with the dates.

  **28.35**Crore mutual fund folios (accounts), 31 Aug 2026

Mutual fund industry body monthly report, Aug 2026

  **2,15,697**Clients of discretionary portfolio managers, 31 Aug 2026

SEBI report of portfolio managers, 31 Aug 2026

Folios are accounts, not people, but the gap is plain: one door is wide, the other is priced for large accounts.

3By the end you can

1. Name the five routes to one rule in India and the SEBI minimum for each.
2. Convert an [expense ratio](/learn/glossary#expense-ratio), a [PMS](/learn/glossary#pms) fee and a fee on traded value into rupees on your amount.
3. Say who holds the shares, who pays the tax and how fast you can leave in each route.

2 terms this section turns on

From the module glossary; every term is in the Learn glossary too. Source: Module 6.10, Ways to Own a Strategy in India.

## Five routes to one rule

  * **Mutual fund.** A SEBI regulated trust pools many investors. You hold units; a custodian holds the shares. An index fund follows a published rule, most other schemes follow a manager's judgement.

  * **SIF.** A Specialized Investment Fund is a mutual fund product for informed investors. It may use limited unhedged short exposure through derivatives and more complex strategies than a regular scheme. SEBI says it bridges regular funds and PMS.

  * **PMS.** A portfolio manager runs a separate account for you under a contract. Discretionary: the manager decides. Non-discretionary: the manager follows your directions.

  * **[AIF](/learn/glossary#aif).** A privately pooled fund for sophisticated investors. Category I and II back start-ups, infrastructure, private equity and similar. Category III runs complex trading strategies and may use leverage.

  * **Your own demat.** The shares sit in your own account and you follow a published rule. RupeeCase is this route: a technology platform, not a fund, PMS, AIF or adviser. The tutorial [Marketplace chips: what do New, Partner and the themes mean?](/learn/terminal/marketplace-card-chips) explains how its strategies are labelled.

  An AIF asks for 21 times the highest RupeeCase minimum

    1. AIF, per investor**Rs 1,00,00,000**

    2. PMS, per client**Rs 50,00,000**

    3. SIF, per PAN**Rs 10,00,000**

    4. RupeeCase, highest**Rs 4,75,912**

    5. RupeeCase, lowest**Rs 22,000**

  Smallest amount accepted from a non-accredited investor. SEBI AIF Regulations, regulation 10(c), to 14 Jul 2026; SEBI PMS FAQ, 20 Sep 2024; SEBI Mutual Funds Regulations 2026, regulation 49. RupeeCase: published minimums as of 8 Aug 2026, which move with share prices. A mutual fund scheme has no SEBI floor.

Watch in the terminal: what do New, Partner and the themes mean? A short tutorial on sample data.
Accredited investors skip all three floors. In the AIF rules that means annual income of ₹2 crore, or net worth of ₹7.5 crore with half of it in financial assets, or ₹1 crore of income with ₹5 crore of net worth, certified by an accreditation agency. On 24 September 2026 SEBI's board also approved a route for people with ₹5 crore of securities market exposure, and let managers accredit investors themselves.

## The five routes, row by row

Facts as of 16 October 2026, from the SEBI documents in the sources list. Each cell says what the rules say, not which route to pick.

| Compare | Mutual fund | SIF | PMS | AIF | Own demat |
| --- | --- | --- | --- | --- | --- |
| Minimum | No SEBI floor; the scheme document sets one | ₹10 lakh per PAN, all strategies together | ₹50 lakh per client | ₹1 crore per investor | One share of each holding: ₹22,000 to ₹4,75,912 (8 Aug 2026) |
| What you hold | Units; a custodian holds the shares | Units; a custodian holds the shares | Shares in an account the manager operates for you | Units of a private fund | Shares in your own demat |
| Who decides | Manager, or an index rule | Manager; limited short positions allowed | Manager, or you if non-discretionary | Manager; Category III may use leverage | A published rule; you approve each rebalance |
| Cost | Expense ratio; base cap 0.90% for index funds, 2.10% to 0.95% for other equity funds | Own limits per strategy, in its information document | Fixed, return-based or both; no upfront fee; operating costs capped at 0.5% a year | Set in the placement memorandum | 0.2% of traded value per rebalance, plus your broker's charges |
| Tax | On redemption: equity funds 20% within 12 months, 12.5% above ₹1.25 lakh after | Depends on the strategy | Yours, on each sale | Category I and II pass through to you; Category III generally taxed in the fund | Yours, on each sale |
| What you see | NAV every day; periodic portfolio statements | NAV every day; portfolio every alternate month | Quarterly report with every trade | Category III: NAV at least monthly if open ended | Every holding in your demat; every rebalance published |
| Exit | Redeem at NAV; exit load capped at 3% | Set per strategy: equity can be daily, others weekly or less; notice up to 15 working days | No lock-in; an exit fee is allowed | Category I and II: at least 3 years | Sell on any trading day through your broker |

## What each route costs, in rupees

A fund hides its cost inside the NAV: you never see a bill, only a slightly lower price. A PMS and an AIF bill by contract: a fixed fee, a share of returns above a hurdle, or both. SEBI's own PMS worked example uses a 1.5% fixed fee, 0.50% other expenses, an 8% hurdle and a 20% share above it, with a [high water mark](/learn/glossary#high-water-mark) so you never pay twice for the same gain. Those are SEBI's illustration, not any manager's terms.

### The direct route bills in another unit

RupeeCase charges 0.2% of traded value, only on a rebalance that trades, so the yearly bill follows how much the strategy trades. Over the latest record year the fee worked out to 1.2% to 3.3% of capital for the strategies that trade. Nifty 50 Equal Weight shows no exits in its window, so its estimate is nil.

  The fee ran from 1.2% to 3.3% of capital a year, set by how much a strategy trades

    1. Focused Largecap 20**1.24%**

    2. Healthcare Basket**1.42%**

    3. Midcap**1.77%**

    4. Allcap**2.22%**

    5. Allcap Multi Asset**3.27%**

    6. TotalMarket Hybrid**3.34%**

  Platform fee at 0.2% of traded value as a percent of capital, over the 365 days to each strategy's latest rebalance (windows ended between 8 May and 3 Jul 2026). RupeeCase published rebalance record, model, back tested. Six of the strategies that trade. Weight resets and broker side charges are not counted. [Turnover](/learn/glossary#turnover) varies year to year.

₹100 in Large Cap Multi Asset became about ₹315 in the model

Large Cap Multi Asset, the strategy this path applies, rebased to 100, after charges. The Nifty 50 TRI is drawn as its CAGR line, not the daily index. Model, back tested, not actual client returns. Source: RupeeCase published model record (lineup.json), monthly. As of 31 Jul 2026.
A percentage of assets and a percentage of traded value are different units. At 11 times turnover, 0.2% of traded value is 2.2% of capital. At 4.5 times it is 0.9%. Convert before you compare.

### Trading charges come on top

Any route that owns shares pays STT, stamp duty, exchange charges and GST. In a fund they sit inside the total expense ratio. In your demat they appear on the contract note. The same trades cost the same whoever runs them, so the calculator keeps them on their own line.

## Tax, custody and exit

### Tax

In a PMS and in your own demat each sale is yours: 20% on gains within 12 months, 12.5% on long term gains above ₹1.25 lakh a year (Income-tax Act 2025, sections 196 and 198). A mutual fund defers the tax until you redeem. A Category I or II AIF passes income through to you under section 224. A Category III AIF sits outside that section, so the fund is generally the taxpayer. For a SIF, SEBI's FAQ says only that it depends on the strategy. Rules change; read the tax statement the provider gives you.

### Custody

A fund's custodian holds the securities and you hold units. A Category III AIF must appoint a custodian whatever its size. SEBI's new standard PMS agreement, from 1 April 2027, builds the manager's authority to operate your demat into the contract. In your own demat the shares are yours, with your broker's depository participant. RupeeCase holds neither money nor shares; your broker places the orders when you approve a rebalance.

Watch in the terminal: does the app hold my money or shares? A short tutorial on sample data.

### Exit

A mutual fund may charge an exit load of up to 3% of NAV. A PMS cannot impose a lock-in, though an exit fee is allowed. A SIF sets its own redemption calendar. If a redemption takes you below ₹10 lakh, your units freeze and you get 30 days to restore the minimum before the rest is redeemed. A Category I or II AIF runs for at least three years. In your own demat you sell on any trading day, and the app's Withdraw sheet sells every holding in proportion.

## The rulebook is moving

  1. 27 Feb 2025**SEBI sets the SIF framework**Circular SEBI/HO/IMD/IMD-I POD-1/P/CIR/2025/26 opens a lane between funds and PMS.

  2. 29 Jul 2025**The ₹10 lakh check gets a method**A circular sets how the minimum threshold is monitored.

  3. 1 Apr 2026**New mutual fund rules start**SIF gets its own chapter, and the expense ratio splits into a base ratio and statutory charges.

  4. 24 Sep 2026**SEBI's board approves new PMS rules**A route into direct mutual fund plans at ₹25 lakh, IPO investing, and new ways to be accredited.

  5. 1 Apr 2027**The new PMS rules take effect**The 2020 rules apply until then.

## Common mistake: comparing the headline

The common mistake is setting one fee percentage against another. A 0.9% expense ratio is a share of assets. A 0.2% platform fee is a share of traded value. A 2% fixed fee plus a share of profits is neither. Put each in rupees, on your amount, at the turnover the strategy really has, then add the trading charges to all of them.

Two terms to hold on to from 6.10

From the module glossary. Source: Module 6.10, Ways to Own a Strategy in India.
The second mistake is reading a minimum as a quality mark. It tells you who may enter, nothing more.

    **Myth**A higher minimum means a better product.

    **Fact**A minimum decides who may enter. SEBI describes a SIF as suited to informed investors who can bear a loss of capital. It says nothing about higher returns.

## How this shows up in RupeeCase

  The fifth column

  RupeeCase is the direct route and nothing else. It is a technology platform run by QC Alpha Technologies Pvt Ltd, not a mutual fund, SIF, PMS, AIF or investment adviser. Each strategy is a published rule, your own broker places the orders in your own demat when you approve a rebalance, and nothing is pooled. The fee is 0.2% of traded value, charged when a rebalance trades. The minimum is one share of every holding: ₹22,000 to ₹4,75,912 as of 8 Aug 2026; the tutorial [Minimum investment: why does each strategy have one?](/learn/terminal/minimum-investment) shows where the app states it. Withdrawing works as described in [Withdraw: what is sold, and where does the money go?](/learn/terminal/withdraw) Put your amount through the [fee calculator](/fee-calculator), or read the side by sides against [mutual funds](/vs/mutual-funds), [PMS](/vs/pms) and [AIF](/vs/aif). This page names no winner. RupeeCase strategy figures are model, back tested.

Where this section sits in module 6.10

Sections 4 to 9 of 9; the highlighted one is next. Source: Module 6.10, Ways to Own a Strategy in India.

## Key takeaways

* SEBI floors: SIF ₹10 lakh per PAN, PMS ₹50 lakh, AIF ₹1 crore; accredited investors are exempt.
* A share of assets and a share of traded value are different units; 0.2% at 4.5 times turnover equals 0.9%.
* Trading charges apply in every route that owns shares.
* In a PMS and your own demat each sale is taxed in your hands; a fund defers tax to redemption.
* New PMS rules take effect on 1 April 2027.
* A minimum says who may enter, not how good a product is.

## Questions readers ask

Can I put less than ₹50 lakh into a PMS?Not into a conventional PMS: the floor is ₹50 lakh per client unless you are an accredited investor. The new portfolio manager rules, in force from 1 April 2027, add a route into direct mutual fund plans with a ₹25 lakh floor.

Is a SIF just a mutual fund?It is a mutual fund product with its own chapter in SEBI's rules: ₹10 lakh minimum per PAN, limited unhedged short positions through derivatives, and a redemption calendar and notice period set per strategy.

Which route costs least?It depends on your amount and on how much the strategy trades. Put every fee in rupees on the same amount at the same turnover, then add trading charges to each.

Rules and figures in this module were last verified on 19 Oct 2026. Tax and regulatory rules change; check the source before acting.

What does Ways to Own a Strategy in India cover?Mutual fund, SIF, PMS, AIF or your own demat: five ways to own one rule in India. The minimum, cost, tax, custody and exit of each, side by side, with no verdict. It works through Five routes to one rule, The five routes, row by row, What each route costs, in rupees, Tax, custody and exit and more. It is module 6.10 of Path 6, Indian Financial Products, about 10 minutes of reading, free.

TTry it

## Ways to Own a Strategy in India, in numbers.
How many times a year a strategy can trade before 0.2% of traded value costs more than a percentage fee Your numbers, the module's formula, nothing stored.

Calculator

### Fee Break-even for Trading Volume
A fee quoted as a share of assets and a fee quoted as a share of traded value are different units. This finds the yearly trading volume at which the two cost the same.

Amount (INR)Percentage fee to compare against (% of assets a year)Platform fee (% of traded value)

  AApply it on RupeeCase

## Large Cap Multi Asset
20 largecap stocks plus LiquidCase and GoldBees. 80/10/10 multi-asset on the Nifty 100. An index built on the rules this path teaches, largecap equity plus debt and gold, conservative core, held stock by stock in your own demat. Risk band: Moderately High.

  [See the strategy](/strategies/largecap-multi-asset)[Sign up for RupeeCase](https://invest.rupeecase.com/signup?strategy=largecap-multi-asset)

  [CAGR24.4%Sharpe1.32Max DD−21.0%Minimum₹1,25,000Model figures back tested, as of 27 Apr 2026. Minimum as of 8 Aug 2026. Not client returns, not a promise.](/strategies/largecap-multi-asset)

QQuick check

## 10 questions, 7 to pass.
Pick an answer to each question; every answer is explained when you check. A pass gives this module's Certificate of Completion. Your result stays on this device and counts towards the Path 06 certificate.

7 of 10 correct passes module 6.10

Every answer is explained when you check; a retake is always free. Source: RupeeCase Learn quiz rules (70% to pass).

  Passed

###

  Certificate ID

Download PNGPrint or save as PDF[Check the ID](/learn/certificates/verify)
Self paced and unproctored. A record of completing free education by RupeeCase; not a NISM certificate and not endorsed by NISM, NSE, BSE or SEBI. It qualifies no one to deal, advise or publish research.

06Path test

## 35 questions. 25 correct earns the certificate.

This test covers everything in Path 6: equity shares and corporate actions, IPOs and book building, mutual fund structures, ETFs and tracking error, index vs active investing, derivatives margins and settlement, bonds and yield-to-maturity, REITs and InvITs, gold vehicles, commodities, and international diversification, and the five ways to own a strategy. Questions cover modules 6.1 to 6.10, in a shuffled order, with no timer. Your score stays on this device.

* **35**questions
* **25**to pass (70%)
* **10**modules covered

Start the testOnly the path test decides the path certificate. The module quizzes are optional: pass them too for each module's own certificate and a tick on every stop.

  Passed

###

  Certificate ID

Download PNGPrint or save as PDF[Check the ID](/learn/certificates/verify)Retake the test
[All your certificates, and the master certificate](/learn/certificates)

CCheck yourself

## Path 06 so far.
Your quick check results on this device, stop by stop.

Stop 10 of 10 on Path 06

Indian Financial Products: every live stop, this module ringed. Source: RupeeCase Learn, Path 06.

1. [6.1Equity Shares, Structure, Rights and Corporate ActionsNot yet](/learn/path-6/module-6-1-equity-shares-structure-rights-corporate-actions)
2. [6.2IPOs and New ListingsNot yet](/learn/path-6/module-6-2-ipos-new-listings)
3. [6.3Mutual Funds, Structure, Types and Hidden CostsNot yet](/learn/path-6/module-6-3-mutual-funds-structure-types-costs)
4. [6.4ETFs, How They Work and Why They Matter for Systematic InvestorsNot yet](/learn/path-6/module-6-4-etfs-how-they-work)
5. [6.5Index Funds vs ETFs vs Active, The Evidence in IndiaNot yet](/learn/path-6/module-6-5-index-funds-vs-etfs-vs-active)
6. [6.6Derivatives, Futures and Options for the Systematic InvestorNot yet](/learn/path-6/module-6-6-derivatives-futures-options)
7. [6.7Bonds and Fixed Income in IndiaNot yet](/learn/path-6/module-6-7-bonds-fixed-income-india)
8. [6.8REITs and InvITs, Listed Alternatives to Direct Real EstateNot yet](/learn/path-6/module-6-8-reits-invits)
9. [6.9Gold, Commodities, and International Investing for Indian InvestorsNot yet](/learn/path-6/module-6-9-gold-commodities-international)
10. [6.10Ways to Own a Strategy in IndiaNot yet](/learn/path-6/module-6-10-ways-to-own-a-strategy#quiz)
11. [TPath test, 35 questionsNot yet](/learn/path-6/module-6-10-ways-to-own-a-strategy#pathTestSection)

Path 06 in reading time: 87 minutes over 10 modules

Minutes of reading per module, this one in amber. Source: RupeeCase Learn, Path 06.

    Explore next

## Put the module to work.

* [TopicSmallcase and model portfolios: how the options compareA reading list: guides, modules, tools and questions](/topics/smallcase-and-model-portfolios/)
* [Free module 7.1How to Read the Indian Economy, Key Indicators15 min read](/learn/path-7/module-7-1-how-to-read-indian-economy-key-indicators)
* [TutorialMinimum investment: why does each strategy have one?0:51 video, Basic](/learn/terminal/minimum-investment)
* [TutorialMarketplace chips: what do New, Partner and the themes mean?1:09 video, Basic](/learn/terminal/marketplace-card-chips)
* [StrategyLarge Cap Multi Asset strategyNifty 100, 22 stocks, every 4 weeks](/strategies/largecap-multi-asset)
* [Learn guideIndian Stock Markets Explained: NSEA pillar guide across the paths](/learn/indian-markets)

      Community

## Join my WhatsApp group.

      Scan the code, fillFill one short form, and join my WhatsApp group. Slides, sources, factsheets and the rebalance logs live there, and members join a daily Google Meet with me.

      New to RupeeCase? [Getting started](/getting-started) [See the terminal](/terminal)

        [Sign up for RupeeCase](https://invest.rupeecase.com/signup)
        [Join the WhatsApp group](https://forms.gle/C6HMtM1Z2GfeocQV7)

      [One form, one group](https://forms.gle/C6HMtM1Z2GfeocQV7)Scan with your phone camera

SSources

## Where the figures come from.
11 sources, SEBI the most cited

The publisher of each source listed below. Source: Module 6.10 source list.
1. [SEBI (Mutual Funds) Regulations, 2026, amended to 7 Jul 2026: regulation 44 (exit load), 49 (SIF minimum) and 66 (base expense ratio limits)](https://www.sebi.gov.in/sebi_data/attachdocs/jul-2026/1783933012694.pdf)
2. [SEBI, FAQs for Specialized Investment Funds, Part A for investors, issued 22 Sep 2026](https://www.sebi.gov.in/sebi_data/faqfiles/sep-2026/1790074512985.pdf)
3. [SEBI circular SEBI/HO/IMD/IMD-I POD-1/P/CIR/2025/26, 27 Feb 2025: regulatory framework for Specialized Investment Funds](https://www.sebi.gov.in/legal/circulars/feb-2025/regulatory-framework-for-specialized-investment-funds-sif-_92299.html)
4. [SEBI, Frequently Asked Questions on Portfolio Managers, 20 Sep 2024 (FAQs 8, 14, 20, 26 and the performance fee illustration in Annexure 2)](https://www.sebi.gov.in/sebi_data/faqfiles/sep-2024/1727350357563.pdf)
5. [SEBI press release PR 59/2026, Board meeting of 24 Sep 2026: Portfolio Managers Regulations 2026, PRIM and accredited investor changes](https://www.sebi.gov.in/sebi_data/attachdocs/sep-2026/1790259036651.pdf)
6. [SEBI (Portfolio Managers) Regulations, 2026, published 12 Oct 2026, with effect from 1 Apr 2027](https://www.sebi.gov.in/legal/regulations/oct-2026/securities-and-exchange-board-of-india-portfolio-managers-regulations-2026-with-effect-from-april-1-2027-_105159.html)
7. [SEBI (Alternative Investment Funds) Regulations, 2012, amended to 14 Jul 2026: regulations 3, 10(c), 13, 20 and 23](https://www.sebi.gov.in/legal/regulations/jul-2026/securities-and-exchange-board-of-india-alternative-investment-funds-regulations-2012-last-amended-on-july-14-2026-_102975.html)
8. [SEBI, Report of Portfolio Managers as on 31 Aug 2026: 2,15,697 discretionary clients](https://www.sebi.gov.in/statistics/assets-managed/archive-month/aug-2026.html)
9. [AMFI monthly report for August 2026: 28,35,19,085 folios across 1,985 schemes at 31 Aug 2026](https://portal.amfiindia.com/spages/amaug2026repo.pdf)
10. [Income-tax Act, 2025, section 224 (investment funds); capital gains rates are in sections 196 and 198](https://www.incometaxindia.gov.in/w/section-224-76)
11. [NSE, SEBI turnover fees, STT and other levies: STT 0.1% and stamp duty 0.015% on delivery trades, rates from 1 Apr 2026](https://www.nseindia.com/static/invest/first-time-investor-sebi-turnover-fees-stt-other-levies)

GTerms

## 8 terms from this module.
SIFSpecialized Investment Fund, a mutual fund product under SEBI's mutual fund rules for informed investors. It needs ₹10 lakh per PAN across all its strategies (accredited investors are exempt), may hold limited unhedged short positions through derivatives, and sets its own redemption calendar.
[PMS](/learn/glossary#pms)Portfolio Management Service. A SEBI registered portfolio manager runs a separate account for you under a contract, either on its own judgement (discretionary) or on your directions (non-discretionary). The minimum is ₹50 lakh per client unless you are accredited.
[AIF](/learn/glossary#aif)Alternative Investment Fund, a privately pooled fund for sophisticated investors, in three categories. The minimum is ₹1 crore per investor unless you are accredited. Category III may use leverage and complex trading strategies.
Accredited investorAn investor certified by an accreditation agency, for example with annual income of at least ₹2 crore, or net worth of at least ₹7.5 crore with half of it in financial assets. Exempt from the AIF, PMS and SIF minimums.
[Hurdle rate](/learn/glossary#hurdle-rate)The yearly return a manager must beat before a performance fee applies. SEBI's own PMS illustration uses 8%.
[High water mark](/learn/glossary#high-water-mark)The portfolio value on which a performance fee was last paid. Fees are charged only on gains above it, so a recovery is not charged twice.
[Demat account](/learn/glossary#demat-account)The account, opened through your broker at a depository, that holds your shares in electronic form in your own name. In the direct route the strategy's shares sit here.
Base expense ratioThe part of a mutual fund's expense ratio that covers management, distribution, registrar and custody costs, capped by SEBI in slabs that fall as a scheme grows. Brokerage, trading costs and statutory levies are shown separately (SEBI Mutual Funds Regulations 2026).
[All 230 terms in the glossary](/learn/glossary)

[The podcastThe Tanmay Edge archive124 episodes, kept as a dated archive, not advice](/podcast/)[Pillar guideIndian Markets16 modules across paths 1, 6](/learn/indian-markets)

Education only, not investment advice. RupeeCase (QC Alpha Technologies Pvt Ltd) is not a fund, a PMS or a SEBI registered investment adviser. Model returns are back tested, not a promise; figures carry the date checked.