Exponential Growth Beckons

The PMS industry is gearing up for aggressive growth over the coming decade as Indian families seek to proactively invest their savings

- RASHIM BAGGA

WITH MINIMAL MARKETING and without creating a lot of fuss, assets under management (AUM) of the Indian portfolio management services (PMS) industry has grown 16-fold in the past 15 years.

Today, the country's PMS industry manages ₹32 lakh crore of assets and given India's robust economic outlook, it is gearing up for exponential growth over the coming decade as Indian families seek to proactively invest their savings. Increasingly, as successful Indian professionals and entrepreneurs are educating themselves regarding the wealth generation tools available to them, many are reaching the conclusion that PMS is likely to be the mainstay for several years to come.

The PMS industry in India has evolved over the past two decades as India's economy has undergone massive structural changes. Some 10-20 years ago, the industry catered to a niche segment of wealthy investors. But over time PMS has become a democratised tool for wealth management, allowing skilled practitioners to tailor sophisticated investment solutions for discerning investors. The economic reforms of the past decade-GST, demonetisation, reduction in corporate tax rate, etc.-have provided the necessary impetus to the PMS industry, thereby spurring innovation and diversity in the investment strategies offered by 400+ PMS providers in India.