The Indian stock market’s ongoing bull run has not only captured headlines but also catalyzed a notable shift in investor preferences. High-net-worth individuals (HNIs) and experienced market participants are increasingly pivoting toward Discretionary Portfolio Management Services (PMS) in pursuit of personalized strategies and professional oversight.
PMS Adoption Surges Amid Market Optimism
Between April 2023 and April 2025, the number of investors in discretionary PMS schemes rose by a staggering 58% from 1.22 lakh to 1.92 lakh. This surge drove PMS assets under management (AUM) up 37%, now totaling ₹32 lakh crore, nearly double the ₹15 lakh crore reported in April 2020.
This growth story is underpinned by two core investor segments:
Those with sizable mutual fund portfolios seeking sharper, more customized alpha
Direct equity investors realigning toward professionally managed, disciplined frameworks
“The value of structured, conviction-based management became evident, especially after the 2023 market correction,” notes Anand Shah, CIO – PMS & AIF, ICICI Prudential AMC.
Why Investors Are Turning to PMS
The appeal of PMS lies in its bespoke approach providing curated portfolios, deeper research, and active rebalancing, often absent in standardized products like mutual funds.
Key drivers of this shift include:
Post-2020 financialisation boom bringing in a new class of equity investors
Volatility in self-managed portfolios prompting a desire for professional control
Taxation changes especially the removal of indexation benefits for debt mutual funds nudging capital toward PMS and AIFs
Desire to generate inflation-beating, post-tax income of 7–7.5%
“PMS offers an institutional-grade investment framework with boutique-style strategy differentiation,” says Nikhil Ranka, CIO – Equity Alternatives, Nuvama Asset Management.
The Real Asset Allocation Story
Despite the equity hype, 85% of discretionary PMS AUM (~₹27.05 lakh crore) is allocated to listed debt instruments. Only 11% is directed toward listed equities. The remaining is spread across:
Unlisted debt & structured credit: ~₹5,900 crore each
Unlisted equity: ₹2,026 crore
Mutual fund holdings: ₹85,335 crore
This reveals a conservative capital preservation tilt, especially for HNIs prioritizing post-tax yield over headline returns.
Returns vs. Discipline: A Realistic Perspective
While PMS promises alpha, 2024 returns were modest, with 195 equity PMSs reporting an average return of 7.8%, underperforming the Nifty 50’s 10% gain. Yet, PMS providers emphasize process over performance.
“We don’t sell returns; we sell research, discipline, and conviction,” says a CIO quoted in the report. “Alpha is a by-product of consistency and governance.”
RURASH Insight: What This Means for Investors
At RURASH Financials, we see the PMS growth curve as a sign of maturing investor behavior. As the market becomes more efficient and information-saturated, strategy depth, operational discipline, and ethical governance will become key differentiators.
We help our clients:
Navigate the PMS landscape with performance benchmarking and risk alignment
Access theme-based PMS portfolios tailored to personal wealth goals
Evaluate managers not just on returns, but on repeatability, structure, and stewardship
Thinking of exploring Portfolio Management Services?
Let RURASH be your research-led partner in this journey.