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The total non-EPFO AUM i.e. discretionary and non-discretionary grew by 11% from Rs. 4.39 lakh crore as on March 2022 to Rs. 4.88 lakh crore as on March 2023, as per SEBI data. Of this, discretionary and non-discretionary PMS AUM is Rs. 2.72 lakh crore and Rs. 2.17 lakh crore, respectively.
Further analysis reveals that the annual growth in non-discretionary AUM was way higher (25%) than the rise in discretionary AUM (2%). These numbers indicate the rising interest of investors in non-discretionary PMS.
An investor’s involvement in managing funds is the key differentiator between discretionary and non-discretionary PMS.
In the case of discretionary PMS, the portfolio manager manages the funds independently, whereas, in the case of non-discretionary PMS, an investor directs the portfolio manager.
* Figures in crore
Including the EPFO/PF AUM, the total AUM recorded a 15% growth from Rs. 24.19 lakh crore to Rs. 27.80 lakh crore in the last financial year. Here the AUM comprises discretionary, non-discretionary, co-investment and advisory assets.
Notably, the industry added 3,912 investors across these asset classes during FY 22-23 and increased the total count to 1.44 lakh investors as on March 2023