The assets under management of PMS were Rs. 4.33 lakh in January 2019 excluding EPFO and PF contributions, shows the latest SEBI data.
While non-discretionary PMS grew at a healthy pace of 17.54% adding Rs. 15,738 crore in assets in the one year period ending January 2019, both discretionary PMS and advisory services (without EPFO) saw a decline in their assets. Advisory services assets fell by Rs. 30,692 crore while non-EPFO discretionary assets dropped by Rs. 1,858 crore during the year. On a positive note, the number of investors under advisory nearly doubled from 2,024 in January 2018 to 4001 in January 2019 reflecting an increased interest among individual investors for advisory PMS.
Vikas V. Gupta, CEO and Chief Investment Strategist OmniScience Capital Advisors believes that the fall in discretionary assets may be on account of the investors turning cautious in face of market volatility, a trend also reflected in lower mutual funds inflows. “The fall in advisory assets may be on account of the regulator introducing a separate advisory license. The advisory PMS assets may have been moved under the new license category”, he feels.
In a non-discretionary PMS, investors have a say in stock selection unlike discretionary PMS. Most banks and national distributors prefer non-discretionary PMS as it provides better transparency and flexibility to investors while mutual funds and wealth management companies prefer discretionary PMS as it gives fund managers greater investment flexibility.
With a minimum investment size of Rs. 25 lakh and less stringent regulations than mutual funds, PMS are primarily for savvy HNI investors who wish to diversify their investments.
AUM of portfolio managers as on January 2019
Period |
Discretionary |
EPFO investments |
Non-Discretionary |
Advisory |
Total Excluding EPFO |
Total Including EPFO |
Including EPFO |
||||||
Rs. crore |
||||||
Jan-2018 |
1128688 |
968378 |
89720 |
200665 |
450696 |
1218408 |
Jan-2019 |
1264676 |
1106224 |
105459 |
169974 |
433885 |
1370135 |
Difference |
135988 |
137845.559 |
15738 |
-30692 |
-16811.139 |
151726 |
Change in % |
12.05% |
|
17.54% |
-15.29% |
-3.73% |
12.45% |
Source: SEBI