Home / Business and Economy / Non-Metro Investors Flock to PMS Funds
Non-Metro Investors Flock to PMS Funds
4 Dec
Summary
- PMS client count doubled to 220,000 in three years.
- Non-metro investor share in PMS firms has surged significantly.
- Industry AUM grew 1.7 times to ₹8.54 trillion.
The Indian Portfolio Management Services (PMS) sector is witnessing a remarkable expansion, with client numbers nearly doubling to 220,000 over the past three years. A key trend is the significant influx of investors from non-metro cities, whose representation has markedly increased within leading PMS firms. This burgeoning investor base has contributed substantially to the industry's Assets Under Management (AUM), which surged 1.7 times to ₹8.54 trillion during the same period.
This shift is largely attributed to the post-Covid financialization wave and increased awareness of alternative investment options. Business owners and professionals from smaller cities are increasingly opting for customized equity and debt solutions, moving beyond traditional products. While metro-based High Net Worth Individuals (HNIs) often prefer Alternative Investment Funds (AIFs), their counterparts in smaller towns are showing a preference for equity-heavy PMS products.
The expansion of PMS distributors into tier-2 and tier-3 cities has further facilitated this growth. With rising incomes, greater financial literacy, and a growing appetite for higher returns, investors are progressing from mutual funds to direct stocks and subsequently to PMS. This trend is also being supported by wealth creation through inherited assets and property appreciation in rapidly growing non-metro areas.
