SIF vs PMS vs AIF Tax Calculator — See Your Real Post-Tax Returns

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Adjust to your situation. Results update live.

Initial investment ₹1.00 Cr

₹10 L₹50 Cr

Expected gross CAGR 12%

6%20%

Holding period 10 years

2 yr20 yr

Income-tax regime

New regime is the default (FY 2026-27). Surcharge is capped at 25%, so the top marginal rate is 39% — the 42.74% rate only applies under the old regime.

Your effective tax rate incl. surcharge + 4% cess

SIF strategy type

Note: Effective tax rates reflect FY 2026-27 — base slab + surcharge + 4% cess. Under the new regime surcharge is capped at 25% (top rate 39%); the 42.74% rate applies only under the old regime. Calculator assumes the entire holding period is taxed once at exit (12.5% LTCG for SIF/MF; slab/business income for PMS & AIF Cat-III at the fund level). PMS: 1.5% mgmt + 15% perf over a 6% hurdle. AIF Cat-III: 2% mgmt + 15% perf. Real outcomes vary with churn, fund-specific TER, and structure.

How we calculate this

The four wrappers carry materially different tax and cost structures. Here is exactly how each post-tax CAGR is computed:

SIF (equity / hybrid ≥65% eq): 12.5% LTCG on gains held >12 months. No performance fee. Regular-plan TER varies by fund — see the live figure on the Fund Universe page (the model uses a representative, competitively-priced level).
SIF (hybrid <65% eq): 12.5% LTCG on gains held >24 months. No performance fee.
SIF (debt): Slab-rate tax (same treatment in both regimes for an HNI).
Mutual Fund: 12.5% LTCG (equity ≥65%, >12 mo). Regular-plan equity-MF TER ~1.5–2%. Same tax bucket as an equity SIF — the trade-off is no long-short capability.
PMS: Gains taxed at slab rate as business income. 1.5% management fee + 15% performance fee on returns above a 6% hurdle.
AIF Cat-III: Fund-level taxation at slab + surcharge. 2% management + 15% performance fee on the entire return.

The formula assumes a single hold-and-exit at the end of the period. Real portfolios churn — which makes the wrapper differential more pronounced for slab-rate vehicles, not less. Calculator output is illustrative; actual outcomes depend on fund-specific cost, churn, sequence of returns, and individual tax circumstances.

Which tax regime — and why it matters here

India's new tax regime is the default since FY 2023-24, and most HNIs are now on it. The single difference that matters for this calculator is the surcharge cap: under the new regime the maximum surcharge is 25%, so the top marginal rate is 39% (30% × 1.25 × 1.04 cess). The old regime retains a 37% surcharge band above ₹5 crore of income, taking the top rate to 42.74%. Toggle the regime above to apply the correct effective rate to the slab-taxed vehicles (PMS, AIF Cat-III); SIF and MF are 12.5% LTCG regardless of regime.

Why the gap is structural

SIFs inherit Section 10(23D) fund-level tax exemption — gains compound untaxed inside the fund and are only taxed at investor-level redemption at LTCG rates. PMS gains are pass-through at slab. AIF Cat-III is taxed at the fund level at slab plus surcharge. Over a 10-year hold for a top-bracket investor, that single regulatory difference can compound to roughly ₹70–80 lakh per crore of allocation — the exact figure depends on your regime, bracket and the funds chosen. This is an illustrative model, not a forecast.

The Real Cost of Tax on Your HNI Portfolio

Your inputs

How we calculate this

Which tax regime — and why it matters here

Why the gap is structural

The math is clear. The right shortlist isn't.