India's PMS industry targets 10x growth through new infrastructure

The Association of Portfolio Managers in India (APMI) is developing industry-level infrastructure to support a projected 10x expansion of the portfolio management services (PMS) sector. Chairman Vikas Khemani stated that this growth will be driven by new scalable systems, including a digital onboarding platform and an industry-led fund accounting system. APMI also plans to expand its reach into Tier-2 and Tier-3 cities through increased awareness campaigns and outreach beyond major hubs like Mumbai.

During the APMI 3rd Annual Conference, SEBI Chairman Tuhin Kanta Pandey noted that the PMS industry has the potential to grow at a compound annual growth rate (CAGR) exceeding 20 per cent. While noting that many segments of India’s investment universe are growing at over 15 per cent, Pandey emphasized that PMS serves a niche segment of high-net-worth individuals. He suggested that PMS, mutual funds, and alternative investment funds (AIFs) can coexist by catering to different investor needs and value propositions.