India’s PMS Industry Sees 2% AUM Growth in July to Rs 44 Lakh Crore, Client Base Expands by 1.3%

Published On: 21/08/20262 min read

The Portfolio Management Services (PMS) industry in India has shown promising growth in July 2024, with Assets Under Management (AUM) rising by 2% to reach a substantial Rs 44 lakh crore. According to the latest data released by the Association of Portfolio Management Industry (APMI), the client base also witnessed a healthy expansion, growing by 1.3% during the month. This uptick reflects the increasing confidence of investors in PMS as a preferred wealth management avenue, despite ongoing global market fluctuations and sector-specific volatility.

PMS, which offers customized and actively managed investment portfolios primarily targeting high net-worth individuals (HNIs) and institutional investors, appears to be gaining further traction. The rise in AUM suggests that more investors are allocating their capital to professionally managed portfolios, seeking strategic exposure beyond traditional mutual funds.

Several factors contribute to this growth trend. First, the PMS industry continues to outperform many conventional investment options, with some thematic and sector-focused PMS schemes delivering alpha and outperforming benchmark indices, such as the Nifty 50 TRI and S&P BSE 500 TRI. For example, Small and Mid Cap PMS strategies have reported robust average returns, which is attracting new investor interest.

Second, the expanding client base indicates a growing awareness and adoption of PMS solutions among investors looking for tailored investment management. The 1.3% increase in clients demonstrates that PMS providers are successfully reaching out to new investors, including non-resident Indians and high-net-worth individuals exploring differentiated portfolio solutions.

These developments come amid a broader trend where India’s wealth management landscape is evolving, with PMS emerging as a significant segment. Industry experts believe that the combination of strong performance, personalized service, and a growing variety of PMS products is encouraging investor participation.

Market observers also note that while the equity markets have shown volatility recently, PMS strategies focusing on specific sectors or thematic plays have managed to navigate these fluctuations effectively, offering attractive risk-adjusted returns.

Looking ahead, the PMS industry is expected to maintain its growth trajectory as more investors seek customization, active management, and specialized investment exposure. Continued innovation in PMS offerings, alongside robust regulatory frameworks, should enhance investor confidence further.

In summary, the 2% rise in AUM to Rs 44 lakh crore and the client base growth of 1.3% in July underline a strengthening PMS industry in India. As investors increasingly look for bespoke investment solutions amidst a complex market environment, PMS providers are poised to play a pivotal role in portfolio construction and wealth creation.



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