PMS is gaining popularity among HNI investors. The assets of PMS, excluding EPFO, reached Rs.4.65 lakh crore in December2017, shows the latest SEBI data.
The assets under PMS excluding EPFO increased by 31% from Rs.3.54 lakh crore in December 2016.
Overall, if we include the contribution from EPFO, the AUM of PMS increased from Rs.11.75 lakh crore to Rs.14.19 lakh crore, i.e., a growth of 21% over the last one year.
Experts attribute this growth to the increasing popularity of non-discretionary PMS among HNIs. Portfolio managers witnessed 25% growth in non-discretionary assets i.e. from Rs.70,242 crore in December 2016 to Rs.87,858 crore in December 2017. Investors have a say in stock selection under non-discretionary PMS. Many banks and national distributors prefer this service as it provides more transparency.
Similarly, discretionary assets grew by 21%. A large part of discretionary assets come from EPFO and PFs. Of the Rs.11.15 lakh crore AUM under discretionary services, EPFO and PFs have contributed nearly Rs.9.54 lakh crore as on December 2017.
SEBI data show that the assets of advisory services have witnessed a growth of 16%, i.e. from Rs.1.85 lakh crore to Rs.2.15 lakh crore, an addition of Rs.30,502 crore in the last one year. Advisory services under PMS include onshore and offshore advisory services where portfolio managers provide investment advisory services to their clients.
However, the number of clients under the advisory services has reduced to 1,836 clients from 2,037 clients in December 2017. Experts believe that the increasing popularity of other financial products such as private equity funds, private debt funds and hedge funds (AIFs) among HNIs is one of the reason for this marginal decline.
|
Period
|
Discretionary Including EPFO |
Non-Discretionary |
Advisory |
Total |
|
December, 2017 |
11,15,754 |
87,858 |
2,15,635 |
14,19,247 |
|
December, 2016 |
9,20,092 |
70,242 |
1,85,133 |
11,75,466 |
|
Difference |
1,95,662 |
17,616 |
30,502 |
2,43,781 |
|
Change in % |
21% |
25% |
16% |
21% |
Source: SEBI
