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India's Wealth Sector Skyrockets to ₹23.43 Lakh Crore
22 Nov
Summary
- PMS and AIFs collectively manage over ₹23.43 lakh crore.
- AIF commitments saw a remarkable 49.23% annual growth rate.
- Affluent investors seek diversification and alpha in these funds.
India's alternative investment landscape, including Portfolio Management Services (PMS) and Alternative Investment Funds (AIFs), has achieved a new scale, collectively managing over ₹23.43 lakh crore as of September 2025. Over the past decade, this sector has expanded at a robust 31.24% compound annual growth rate, propelled by significant institutional investor participation and a growing trend among affluent individuals towards strategy-led portfolios.
The PMS segment has witnessed substantial expansion, growing sevenfold in the last ten years to reach ₹8.37 lakh crore in assets under management. Simultaneously, AIFs have experienced even more dramatic growth, with total commitments soaring to ₹15.05 lakh crore, demonstrating a striking 49.23% annual growth rate. Category II AIFs have been a major contributor, showing a 54.24% CAGR.
Industry experts note a structural shift, with affluent investors increasingly seeking diversification and reliable sources of alpha. PMS and AIFs are now viewed as indispensable components of professional wealth management, attracting not only high-net-worth individuals but also younger investors and professionals from various cities, marking their transition from niche products to mainstream investment vehicles.
