PMS is gaining popularity among HNI investors. The assets of PMS, excluding EPFO, reached Rs.4.20 lakh crore in September, shows the latest SEBI data.
The assets under PMS excluding EPFO increased by 12% from Rs.3.75 lakh crore in March 2017.
Overall, if we include the contribution from EPFO, the AUM of PMS increased from Rs.12.30 lakh crore to Rs.13.43 lakh crore, i.e., a growth of 9% over the last six months.
Experts attribute this growth to the increasing popularity of non-discretionary PMS among HNIs. Portfolio managers witnessed 11% growth in non-discretionary assets i.e. from Rs75,061 crore in March 2017 to Rs.83,000 crore in June 2017. Investors have a say in stock selection under non-discretionary PMS. Many banks and national distributors prefer this service as it provides better transparency and flexibility.
Similarly, discretionary assets grew by 10%. A large part of discretionary assets comes from EPFO and PFs. Of the Rs.9.67 lakh crore AUM under discretionary services, EPFO and PFs have contributed nearly Rs.9.23 lakh crore as on September 2017.
SEBI data shows that assets of advisory services have witnessed a growth of 4% i.e. from Rs.1.88 lakh crore to Rs.1.96 lakh crore, an addition of Rs.7,784 crore in the last six months. Advisory services under PMS include onshore and offshore advisory services where portfolio managers provide investment advisory services to their clients. The number of clients under the advisory services has increased to 1,656 clients from 1,482 clients in March 2017.
The total number of portfolio managers was 251 in September 2017.
AUM of portfolio managers as on September 2017 (in crore Rs)
|
Period |
Discretionary Including EPFO |
Non-Discretionary |
Advisory |
Total |
|
September, 2017 |
1,06,4482 |
83,000 |
1,96,169 |
13,43,651 |
|
March, 2017 |
9,67,036 |
75,061 |
1,88,385 |
12,30,482 |
|
Difference |
97,446 |
7,939 |
7,784 |
1,13,169 |
|
Change in % |
10.08% |
10.58% |
4.13% |
9.20% |
