Money & Banking

PMS, AIF assets to touch ₹50 lakh cr in 10 years

Our Bureau | | Updated on: Dec 06, 2021
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Assets under management of discretionary and non-discretionary PMS expected to grow six-fold

With sophisticated investors looking beyond traditional retail-oriented investments, Portfolio Management Services and Alternative Investment Fund structures are gaining massive traction. The assets under Portfolio Management Services and Alternative Investment Fund industry is expected to cross ₹50 lakh crore by 2031 on the back of a 20 per cent CAGR growth. These products generate healthy returns, achieve better penetration and thrive in a favourable regulatory landscape, said PMS Bazaar at the annual summit ‘PMS & AIF 4.0: Alternative Assets For All Seasons’.

Minimum investment in PMS, AIF

Minimum investment in PMS is ₹50 lakh while that of AIFs is ₹1 crore. AIFs offer investors access to sophisticated strategies across different asset-classes and more diversification in a risk-adjusted manner.

As per official data, assets under management of discretionary and non-discretionary PMS stood at ₹3.97 lakh crore at October-end. This is expected to grow six-fold and surpass ₹24 lakh crore by 2031, boosted by robust returns and transparency. The size of AIF industry stood at ₹4.87 lakh crore, according to industry data. This is expected to grow over six-fold and reach ₹30 lakh crore in the next 10 years. PMS and AIF products are emerging as an alternatives to grow wealth and investments.

Aashish P Somaiyaa, CEO, WhiteOak Capital Management said PMS and AIFs are becoming the mainstay of many wealth management propositions with rising affluence and the preference for wider variety of risk return combinations that can be generated across asset classes.

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Vikas M Sachdeva, CEO, Emkay Investment Managers, said recent years have seen the global alternative industry grow at a rapid pace driven largely by the need to enhance returns and increase diversification.

Given the recent developments in regulations it is expected that India’s alternative industry will follow the global trend and take a greater share of investable universe, he added. A tool for long-term wealth creation, PMSes offer many advantages such as more customisation with investment strategies in tune with the investor’s risk appetite, he said.

Published on December 06, 2021

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