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An analysis of AUM of the last five years done by Cafemutual shows that AIFs have grown faster than mutual funds and PMS in the last five years.
The AUM of AIFs or commitment raised in AIFs have increased by a CAGR of 31% i.e. from Rs. 3.17 lakh crore in September 2019 to Rs. 12.43 lakh crore in September 2024.
While the AUM of mutual funds have grown by annual growth rate of 25% in five years, such a growth in PMS was 11% annually in PMS in the last five years.
The AUM of mutual funds has risen from Rs. 22.68 lakh crore in September 2019 to Rs. 67.73 lakh crore in September 2024. The AUM of PMS, on the other hand, has increased from Rs. 4.51 lakh crore in September 2019 to Rs. 7.43 lakh crore in September 2024 (We have excluded the EPFO contribution to calculate PMS AUM)
| Mutual Fund AUM (in lakh crore) | ||
| Sep-19 | Sep-24 | CAGR |
| 22.68 | 67.73 | 24.46 |
| PMS AUM (in lakh crore) | ||
| Sep-19 | Sep-24 | CAGR |
| 4.51 | 7.43 | 10.5 |
| AIF AUM (in lakh crore) | ||
| Sep-19 | Sep-24 | CAGR |
| 3.17 | 12.43 | 31.43 |
DP Singh, Deputy MD and Joint CEO, SBI MF believes that the growth of AUM is more in AIFs compared to PMS due to higher institutional investments in AIFs and better investment options. He adds that a smaller base has also helped AIFs to grow at a faster pace.
When it comes to the growth of the mutual fund industry AUM in recent years, he feels that this has been due to high inflows as well as mark-to-market gain. He believes that in the future, the growth of MF industry may be slightly lower than this as the growth will be driven more by sales than market performance, which may not be as good as in the last five years.
Sameer Narayan, Head-Alternate Investments (Equity), Aditya Birla Sun Life MF believes that AIF products have gained popularity as they offer focused investment solutions as well as variety of avenues to the investors. He also adds that a lot of AIF schemes have been launched in 2-3 years with a 5-year lock-in period due to which they have not seen exits, leading to increase in AIF AUM.
R Pallava Rajan, Founder-Director, PMS Bazaar believes that the increase in ticket size of PMS from Rs. 25 lakh to Rs. 50 lakh in 2020 slowed down the growth of the industry for some time. He adds that the listed equity portion of PMS which affects most investors has grown considerably during this period.