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PMS, AIF assets set to cross ₹30 lakh crore in next 3 years: Report


Portfolio management services ( PMS) and alternative investment fund (AIF) assets are set to expand 2.5 times over the next three years as markets touch new highs, PMS Bazaar said in its annual summit. The current asset size of 12 lakh crore would grow to 30 lakh crore in the next three years at the current growth rates.

AIFs have witnessed a staggering growth of 42.5 % YoY with assets growing to Rs. 6.94 lakh crore (from 4.87 lakh crore) across all three categories . The total size of Portfolio Management Services (PMS) in India has witnessed a healthy rise of 23.2% year-on-year with assets growing to 4.89 lakh crore from 3.97 lakh crore. (Data as of June and October 2022 respectively)

Daniel G M, founder – director PMS Bazaar said, “With New Age Alternates, excellent disclosures, a supportive regulatory environment and robust returns from newer investment avenues, the stage is set for the prosperous to take their wealth to the next level as India marches towards becoming a $5 trillion economy.”

With the faster pace of Indian economic development (reaching the GDP mark of $3 trillion in 2021 back from $1 trillion during 2007), the range of investable asset classes is getting wider which looks attractive and opportunistic to the eyes of fund managers and investors.

In line with the growth of wealth – as well as the wealthy in India – the Alternates space has been evolving rapidly to meet the requirements of the burgeoning UHNI segment. One can understand the potential of this industry if one just looks back at China in 2007, which was at a similar stage of evolution in terms of the financial landscape. At the very least, the industry has the potential to grow 3x in the next 5 years in line with the growing aspirations of a wealthy India. While global alternate products are a good reference point, I believe that the Indian alternates industry will build its own ecosystem interfacing with regulators through strong industry associations,” said Vikaas M Sachdeva , Managing Director, Sundaram Alternates.

The total commitments raised across the AIF industry have increased by over 7x (48.5% CAGR) over the last 5 years – from Rs. 96,021 crores as of June 30, 2017 to Rs. 6,94,521 crores as of June 30, 2022. Although the Indian Alternative space has been growing exponentially over the last one decade, our global share of Alternative Investment is yet minuscule. India’s AUM of $60 billion is just 0.46% of the Global AUM of $13+ trillion, in 2021.

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