Non-Metro Investors Flock to PMS Funds

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.