Small‑Town India Is Powering a New PMS Boom—And It’s Just Getting Started
A quiet but powerful shift is reshaping India’s wealth‑management landscape.
High‑risk, high‑conviction Portfolio Management Services (PMS)—once reserved for ultra‑rich investors in Mumbai, Delhi, and Bengaluru—are—once now finding eager takers in Indore, Kochi, Raipur, Nashik, Nagpur, Jodhpur, Guwahati, Tirupur,—are and Coimbatore.
And the numbers tell a compelling story.
PMS Adoption Skyrockets in Non‑Metro India
A post‑pandemic surge in financial awareness has dramatically expanded the investor base outside major metros.
PMS client count doubled from 1.3 lakh to 2.2 lakh in just three years.
Non‑metro clients now form a major growth engine for leading PMS houses.
Who’s driving the trend?
First‑generation business owners Entrepreneurs and SMEs Mutual fund distributors upgrading their portfolios Newly wealthy inheritors and property‑rich families Professionals‑turned‑advisors bringing AUM from Tier‑2/3 cities
What’s Changing in Smaller Cities?
A Structural Post‑Covid Financialisation Wave
Digitization,Tirupur, UPI adoption, and MF penetration have made market investing mainstream—evenDigitization, in Tier‑3 pockets.
Better Access to Advisors & Distributors
PMS distributor count rose from 11,299 in April to 17,027 by October—a—even massive jump in just six months.
Wealth Creation Through Business Growth & Real Estate
Cities like Coimbatore, Surat, Rajkot, and Indore have seen:
soaring property valuations
generational wealth transfers
formalisation of SME cash flows
Natural Upgrade: FD → MF → Direct Equity → PMS/AIF
As risk comfort improves, wealthy investors are moving toward more sophisticated mandates.
How PMS Firms Are Adapting
Leading PMS houses report a rapid shift in investor mix:
| PMS Provider | % Clients From Non‑Metros | Earlier % |
|---|---|---|
| ICICI Prudential PMS | 30% | 10–12% |
| Dezerv PMS | 40% | 30% |
| Karma Capital | 20% | Low single digits |
| Marcellus Investment Managers | 22% | 16% |
Fund managers are now travelling extensively across Tier‑2 & Tier‑3 India—hosting—a investor meetings,—hosting educating entrepreneurs, and building local relationships.
Why Small‑Town Wealth Prefers PMS Now
Hyper‑Personalizationmeetings,
Direct access to fund managers
Real‑time updates
Dedicated relationship managers
Greater Transparency Than Mutual Funds
Daily portfolio visibility vs. monthly factHyper‑Personalization sheets.
Goal‑Driven, Concentrated Portfolios
Investors with growing net worth want:
focused equity bets
thematic high‑alpha strategies
wealth‑preservation frameworks
Trust + Local Presence
Relationship-driven models work well in emerging cities. A Real Investor Example
Suguna Vinodh, a Coimbatore‑based investor and entrepreneur, upgraded from MF + direct equity to a Chennai‑based PMS.
Her reasons:
better diversification
real-time portfolio access
higher engagement
trust in the fund manager
Her only drawback?
“Every churn is taxable—but it evens out long term.”
This sentiment is becoming common across affluent non-metro households.
The Bigger Picture
India’s wealth creation is no longer an urban phenomenon.
This PMS boom in Tier‑2/3 cities signals a deep shift in behavioral finance—from savings-led to strategy-led investing.
With rising incomes, digitised money flows, generational asset transfers, and nationwide financial literacy, India’s next wave of sophisticated investors won’t come from metros…
They will come from Coimbatore, Indore, Raipur, Nashik, and Guwahati.
Explore More Insights
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