In the ever-evolving landscape of Indian capital markets, Portfolio Management Services (PMS) have carved out a niche for themselves, offering tailored investment strategies for high-net-worth individuals (HNIs). A key metric to assess the growth and health of this segment is the Assets Under Management (AUM). In this blog, we’ll explore what SEBI PMS AUM means, why it matters, and what trends are currently shaping this space.
What is PMS (Portfolio Management Services)?
Portfolio Management here Services refer to professional investment management services provided to investors with higher investable surplus. PMS caters primarily to HNIs by offering customized portfolio strategies. These services are governed by the Securities and Exchange Board of India (SEBI) and are offered by registered portfolio managers.
There are two main types of PMS:
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Discretionary PMS – where the portfolio manager takes investment decisions on behalf of the client.
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Non-Discretionary PMS – where the portfolio manager suggests investment ideas, but the final decision lies with the client.
What is AUM in PMS?
AUM, or Assets Under Management, refers to the total market value of assets that a portfolio manager handles on behalf of clients. In the context of SEBI-regulated PMS, AUM reflects the size, performance, and investor confidence in a particular portfolio management strategy or firm.
SEBI mandates that clients must invest a minimum of ₹50 lakhs to avail PMS services, which naturally limits participation to affluent investors.
SEBI PMS AUM: Why It Matters
Understanding AUM in the context of SEBI-registered PMS providers is critical for several reasons:
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Market Insight: High AUM growth signals strong investor trust and good performance.
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Comparison Tool: AUM can help compare PMS providers in terms of size, reputation, and success rate.
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Regulatory Benchmark: SEBI keeps close watch on AUM statistics to assess industry health and enforce compliance.
Recent Trends in SEBI PMS AUM
As of the latest available SEBI data, PMS AUM in India has shown consistent growth, driven by:
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Rising equity participation by HNIs
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Increasing demand for personalized investment strategies
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Expanding reach of PMS providers beyond metros into tier-2 and tier-3 cities
Top-performing PMS houses like ASK Investment Managers, Motilal Oswal, ICICI Prudential PMS, and Marcellus Investment Managers have reported substantial AUM growth over the past few years.
Breakdown of PMS AUM Categories (as per SEBI classification):
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Discretionary PMS – Majority of AUM, showing growing client confidence in expert-managed portfolios.
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Non-Discretionary PMS – Lower in volume but still significant, catering to more hands-on investors.
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Advisory PMS – A smaller segment, focused on fee-based investment advisory.
SEBI’s Role and Reporting Mechanism
SEBI requires PMS providers to submit regular AUM disclosures, which are published on the SEBI website. This transparency allows investors to make informed decisions and enables better regulatory oversight.
Additionally, SEBI has tightened norms around risk profiling, fees, and disclosures to bring PMS more in line with investor-friendly practices seen in mutual fund regulation.
Conclusion
SEBI PMS AUM is more than just a number—it’s a barometer of investor sentiment, portfolio performance, and institutional credibility in India’s wealth management space. As more HNIs look beyond traditional investment routes, PMS is poised to become an even more integral part of India's financial ecosystem.
Whether you're an investor exploring PMS options or a financial advisor navigating the landscape, keeping track of AUM trends and SEBI guidelines is essential for making prudent decisions.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors are advised to consult with a registered financial advisor before making investment decisions.