Mumbai: With sophisticated investors looking beyond traditional retail-oriented investments, portfolio management services (PMS) and alternative investment fund (AIF) structures are gaining traction.
By 2031, the PMS & AIF industry is expected to cross Rs 50 lakh crore turnover on the back of 20 per cent annual (CAGR) growth, as PMS and AIF products thrive in a favourable regulatory landscape, said a report by PMS Bazaar—a platform for investors and intermediaries looking for PMS & AIF information and analytics.
As per the official data, assets under management of discretionary and non-discretionary PMS (non-EPFO) stood at Rs 3.97 lakh crore at the end of October 2021. This is expected to grow six-fold and surpass Rs 24 lakh crore by 2031.
The size of the AIF industry, across all categories, stood at Rs 4.87 lakh crore, according to the latest data shared by companies. This is expe-cted to grow over six-fold and reach Rs 30 lakh crore in the next 10 years.
"A tool for long-term wealth creation, PMSes offer many advantages such as more customisation with investment strategies in tune with investors' risk appetite. They have generated alpha i.e. benchmark beating returns, consistently over a long period of time,” the report said.