US$ 1,181.75 billion (Rs. 1,00,00,000 crore) by FY30: Portfolio Management Services (PMS), Alternative Investment Funds (AIFs) are next big bet for wealthy investors

The Indian alternative investment industry, encompassing Portfolio Management Services (PMS) and Alternative Investment Funds (AIFs), is entering a new phase of growth, with assets set to exceed US$ 1,181.75 billion (Rs. 1,00,00,000 crore) by FY30, according to a study by PMS Bazaar. This represents a more than five-fold increase from the current value in just six years. In FY25, the combined assets of PMSes were around US$ 82.72 billion (Rs. 7,00,000 crore), and AIFs of approximately US$ 141.81 billion (Rs. 12,00,000 crore) reached US$ 223 billion (Rs. 18,87,000 crore), with AIFs, particularly Category-II AIFs, contributing significantly to this growth. Over the past decade (from FY14 to FY25), the industry has expanded at a compounded annual growth rate (CAGR) of 33%, driven by rising wealth, increased financial literacy, and a growing need for diversification, especially in volatile markets. 

India’s economic growth, supported by government initiatives and expanding infrastructure, is making the country a key player in the global financial landscape. As the nation aims for a US$ 35 trillion (Rs. 2,96,170 crore) economy by FY47, PMS, and AIF investments are increasingly attractive to high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs) seeking customised, higher-return options. Recent regulatory changes to enhance investor protection further boost the appeal of these alternatives. With projections suggesting that the sector could grow three to four times in the coming years, PMSes and AIFs are emerging not only as the future but as a current trend in India's investment landscape. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.