Latest SEBI data shows that PMS assets (excluding EPFO investments) grew by a marginal 0.64% last fiscal i.e. from Rs.4.72 lakh crore to Rs.4.75 lakh crore.
Experts attributed the muted response to PMS to correction in mid and small cap stocks. Nalin Moniz, CIO-Alternative Equity, Edelweiss MF shared that while PMS assets have grown over the course of FY19, the headline AUM has remained constant because of the drop in mid and small cap stocks – which is where equity PMS has been traditionally focused.
Analysing the data further, both discretionary and non-discretionary assets grew at a healthy pace in the last fiscal. While non-discretionary funds added Rs.19,234 crore in assets, discretionary funds (excluding EPFO) added Rs.15,314 crore in FY 2018-19.
In a non-discretionary PMS, investors have a say in stock selection. Most banks and national distributors prefer non-discretionary PMS as it allows them to participate in investment decisions. Mutual funds and wealth management companies though prefer discretionary PMS as it gives fund managers more autonomy and flexibility.
Advisory assets meanwhile saw a drop from Rs.2.25 lakh crore in March 2018 to Rs.1.94 lakh crore in March 2019. According to Nalin, advisory assets are primarily offshore mandates. The fall in AUM reflects both outflows and international investors’ caution regarding India.
Andrew Holland, CEO, Avendus Capital Alternate Strategies feels that some of the advisory assets may have moved into alternative investment funds as they offer more flexibility in terms of investments.
PMS Assets
|
Period |
Discretionary |
EPFO investments |
Non-Discretionary |
Advisory |
Total Excluding EPFO |
|
Including EPFO |
|||||
|
In Rs. Crore |
|||||
|
Mar-19 |
13,03,141 |
11,30,452 |
1,09,031 |
1,93,620 |
4,75,340 |
|
Mar-18 |
11,52,123 |
9,94,748 |
89,797 |
2,25,131 |
4,72,303 |
|
Difference |
1,51,018 |
|
19,234 |
-31,511 |
3,037 |
|
Change in % |
13.11% |
|
21.42% |
-14.00% |
0.64% |
Source: SEBI
