PMS and AIF assets expected to cross 30 lakh crore in next 3 years: report


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

OFIs witnessed a meteoric growth of 42.5% YoY with assets reaching Rs. 6.94 lakh crore (from 4.87 lakh crore) in all three categories. The total size of portfolio management services (PMS) in India saw a solid 23.2% year-on-year increase, with assets reaching 4.89 crore lakh from 3.97 lakh crore. (Data from June and October 2022 respectively)

Daniel GM, Founder and Director of PMS Bazaar, said, “With New Age Alternates, excellent disclosures, a supportive regulatory environment and strong returns from new avenues of investment, the stage is set for the successful to take their wealth to the next level as India moves towards becoming a $5 trillion economy. »

With the faster pace of Indian economic development (reaching the $3 trillion GDP mark in 2021 from $1 trillion in 2007), the range of investable asset classes is widening, which looks attractive and opportunistic in 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 evolved rapidly to meet the demands of the burgeoning UHNI segment. One can understand the potential of this industry if one looks at China in 2007, which was at a similar stage of development in terms of the financial landscape. At the very least, the industry has the potential to grow 3x over the next 5 years in line with the growing aspirations of a wealthy India. While global alternative products are a good benchmark, I believe the Indian alternatives industry will build its own ecosystem interfacing with regulators through strong industry associations,” said Vikaas M Sachdeva, Managing Director of Sundaram Alternates.

Total commitments raised in the AIF industry has increased by more than 7x (48.5% CAGR) over the past 5 years – from Rs. 96,021 crores as of June 30, 2017 to Rs. June 2022. Although the Indian alternative space has grown exponentially over the past decade, our global share of alternative investing is still tiny. India’s AUM of $60 billion is only 0.46% of the global AUM of $13 trillion and above, in 2021.

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