New Delhi, Aug. 5 -- Ankur Warikoo, an investor with Rs.18 crore put into portfolio management services (PMS) and alternative investment funds (AIFs), is constantly flooded with pitches from wealth managers to invest in PMS, AIFs and specialized investment funds (SIFs). But PMS and AIFs are under threat: the recent launch of SIFs has disrupted India's high-net-worth investor (HNI) market, forcing PMS and AIF providers into a high-stakes battle for survival.

SIFs-equipped with tax advantages and lower entry barriers-are actively cannibalizing existing market shares. For investors, the abundance of choice is welcome, but for traditional fund houses, every rupee that flows into a new SIF comes at the expense of an established PMS or Categor...