Prateek Pant, co-founder and head-products and solutions at Sanctum Wealth Management Ltd, told Mint that HNIs have traditionally invested in equities through mutual funds. “But of late, we have seen that delivering alpha for actively managed funds has been a big challenge for fund managers. They have been looking at constructing thematic portfolios either through PMS (portfolio management services) or AIF (alternative investment fund). The core part of the portfolio tends to be large-cap mutual funds or large-cap exposure and the satellite portion is done through AIFs or PMS, which can deliver significant alpha over longer periods,“ the wealth manager said.