PMS is expensive over mutual funds!

HNIs & Ultra HNIs in their quest to chase higher returns through PMS (Portfolio Management Service) or AIF (Alternate Investment Fund), ignore the fact that mutual funds provide institutionalized processes with lesser risk. Besides there is higher tax incidence in PMS or AIF in comparison to mutual fund schemes. Overall, the annual cost in an AIF and fixed fee PMS is comparable to the cost of a regular equity mutual fund plan.