MUMBAI: The Portfolio Management Services (PMS) industry has expanded to cross the Rs 42-trillion mark from across 2.12 lakh customers in April, marking a tepid 2.1% on-month growth but indicating healthy investor participation as the industry enters the new fiscal, with the discretionary segment continuing to anchor overall AUM growth.
The client base stood at around 2.12 lakh accounts, with a 1.7% adjustment during the month and the total AUM rose at a mild pace to Rs 42.2 trillion, the Association of Portfolio Managers in India said in a note Thursday.
The month saw the total net inflows of Rs 25,088 crore in April, as against a net outflow of Rs 648 crore in March, driven by a 27% on-month expansion in inflows to Rs 46,030 crore alongside a meaningful moderation in outflows.
Equity grew 13.8%, plain debt expanded 0.8%, and mutual funds rose 5.4%, while derivatives experienced notable repositioning, the association said.
Investor participation showed a mixed movement though, with domestic investors continuing to account for 91% of the client base and 95% of total AUM. Foreign AUM expanded 7.8% on-month, while domestic AUM also grew much slower at 1.8%.
PF/EPFO continued to anchor domestic assets at around 80% of domestic AUM, while distributor additions continued into FY27, supporting broader PMS penetration.
Listed equity assets continued to see strong momentum with 13.6% growth, reflecting sustained investor preference towards equity-oriented opportunities. In the unlisted space, equity assets surged 38.8%, while unlisted debt grew sharply by 150.5%, indicating rising interest in private market investments. Furthermore, foreign AUM expanded 7.8%, while domestic AUM was broadly stable.
“This latest monthly data point to a deeper transition underway within the wealth landscape. Capital is no longer moving only towards traditional equity exposure, but increasingly towards specialised and diversified strategies across listed and unlisted markets. The PMS industry is gradually becoming a strategic portfolio allocation framework for sophisticated investors rather than a tactical investment avenue,” said Vikas Khemani of the industry lobby.
