India PMS Sees Huge Rebound: Flows Turn Positive

The Indian portfolio management services (PMS) industry witnessed a strong recovery in April, with net investor inflows reaching ₹25,088 crore. This marks a significant turnaround from the net outflow of ₹648 crore recorded in March, which was characterized by market correction and volatility. Total inflows into PMS strategies saw a substantial month-on-month increase of 27%, totaling ₹46,030 crore, while outflows decreased by 43%.

This rebound in PMS flows was closely linked to a robust rally in Indian equities during April. The benchmark Sensex gained 6.9%, and the Nifty 50 rose 7.5%. Broader market indices experienced even sharper gains, with the BSE Midcap and Smallcap indices advancing significantly. As a result, the overall equity Assets Under Management (AUM) within PMS expanded by 13.8% month-on-month.

The industry's total assets under management grew by 2.1% to ₹42.29 lakh crore in April, despite a slight decline in the total client base. Investor appetite showed a notable shift towards specialized and diversified strategies across both listed and unlisted markets. Unlisted equity assets surged by 38.8%, and unlisted plain debt assets saw a remarkable 150.5% increase.

Discretionary PMS continued to lead the industry, comprising 84.9% of total AUM. Inflows into discretionary strategies alone increased by 52% month-on-month. Domestic investors remained the dominant force, accounting for 95% of PMS assets, with PF/EPFO assets contributing substantially.