PMS assets (excluding EPFO/PF investments) have declined by 7% in this fiscal so far. As of August end this year, AUM of the PMS industry (excluding EPFO/PF investments) stood at Rs.4.40 lakh crore, falling from 4.76 lakh crore at the beginning of this financial year, shows data available on SEBI.
The data comes at a time when the PMS industry is set to undergo some major changes. In the first week of August, SEBI had issued a consultation paper in which it proposed that the PMS industry should do away with upfront commission and move to all trail model. The proposals also included increasing the minimum threshold limit from Rs.25 lakh to Rs.50 lakh and capital adequacy or net worth from Rs.2 crore to Rs.5 crore.
In FY 2018-19, PMS assets (excluding EPFO/PF investments) grew by a marginal 0.64% i.e. from Rs.4.72 lakh crore to Rs.4.75 lakh crore.
In terms of number of clients in PMS industry at the end of August 2019, discretionary services category topped with 1.47 lakh clients. The non-discretionary category was next with 7,768 clients, followed by advisory category with 4,127 clients.
At the start of this financial year, clients in discretionary services stood at 1.38 lakh clients, followed by non-discretionary category with 6,853 clients and advisory category with 4,038 clients.
Mutual funds, which largely offer discretionary PMS gives fund managers more autonomy and flexibility.
Including EPFO/PF investments, the portfolio management industry has grown by 4% in this fiscal so far. As of August end, AUM of the PMS industry stood at Rs.16.70 lakh crore, rising from 16.06 lakh crore at the beginning of this financial year.
AUM of fund managers of EPFO/PFs contributed Rs 12.3 lakh crore i.e. 73.60% of total AUM.