Discretionary PMS Clients Cross 200K; Assets Soar Past ₹40 Trillion
India’s Portfolio Management Services (PMS) industry has reached a new milestone, with the number of discretionary PMS clients surpassing 200,000 and assets under management (AUM) crossing the ₹40 trillion mark as of September 2025 — the highest since records began in 2010.
The surge underscores how affluent investors are increasingly turning to professional wealth managers for personalised investment strategies and superior market returns, amid a maturing equity landscape and growing preference for bespoke portfolio solutions.
A Decade of Explosive Growth
According to data from the Securities and Exchange Board of India (SEBI), discretionary PMS clients — where fund managers independently take buy and sell decisions on behalf of investors — have risen from just 67,417 in December 2010 to over 200,000 by September 2025.
In terms of assets, PMS providers now collectively manage ₹40.3 trillion, up from ₹3.6 trillion in 2010 — a more than tenfold jump. Excluding large institutional allocations (like the Employees’ Provident Fund Organisation and similar entities), core PMS assets stood at ₹11.9 trillion — more than double the ₹4.5 trillion recorded before the pandemic in September 2019.
SEBI’s Push for Industry Consolidation
On October 24, 2025, SEBI introduced a new framework enabling consolidation within the PMS industry through the transfer of business between portfolio managers.
“As an initiative towards ease of doing business and simplification, it has been decided to allow transfer of PMS business,”
The framework allows both full or partial business transfers, whether within the same group or between unrelated managers, signalling SEBI’s intent to streamline operations, reduce fragmentation, and encourage scale efficiencies in the fast-expanding PMS ecosystem.
The Drivers: Customisation and Control
Unlike mutual funds (MFs), which require as little as ₹500 to start investing, PMS schemes have a minimum ticket size of ₹50 lakh, catering to high-net-worth individuals (HNIs) seeking greater flexibility and control.
“Even in the US, there has always been a co-existence of multiple money managers. People want more solutions for their wealth management,”
Sachdev added that PMS clients enjoy direct interaction with fund managers, and fees are often negotiable depending on investment size — a contrast to the fixed-fee model of mutual funds.
Furthermore, many PMS products focus on mid- and small-cap companies, demanding specialised research and risk management approaches distinct from traditional large-cap strategies.
Investor Behavior: Seeking Alpha Amid a Rangebound Market
Despite recent rangebound equity market performance, demand for PMS products continues to rise.
“Many high-net-worth investors are seeking variety in their investments,”
Even with underperformance in certain PMS strategies, Vidwans believes the momentum is unlikely to slow, as investors prioritise portfolio personalisation, manager accountability, and alpha generation potential over mass-market fund options.
The Road Ahead: Double-Digit Growth Expected
Industry experts expect PMS AUM to continue growing at a double-digit pace over the next decade, driven by:
Wealth creation among HNIs and ultra-HNIs
Increased awareness of discretionary wealth solutions
SEBI’s evolving regulatory support
The rise of hybrid investment structures blending PMS, AIFs, and MFs
As India’s wealth management sector matures, PMS products are poised to play a pivotal role in shaping long-term capital formation, offering active management, customised mandates, and closer client engagement than traditional investment avenues.
For detailed insights on PMS growth trends, HNI investment behaviour, and SEBI’s evolving regulatory landscape, explore thought leadership by Ranjit Jha (CEO) — a leading voice in wealth strategy, portfolio management, and market intelligence.
To discover how PMS, AIFs, and bespoke investment models can enhance your portfolio’s risk-adjusted returns, connect with Rurash Financials — your trusted partner for customised wealth management and institutional-grade investment solutions.