The assets under management for Portfolio Management Services (PMS) and Alternative Investment Funds (AIF) have grown at a compound annual growth rate (CAGR) of 31% over the past decade, reaching ₹23.43 lakh crore as of the end of September, up from ₹1.54 lakh crore.
According to data from PMS Bazaar, the PMS industry has expanded nearly sevenfold, climbing to ₹8.37 lakh crore from ₹1.27 lakh crore in the same period. The number of SEBI-registered portfolio managers has also increased to 495.
Commitments in the AIF space have experienced a remarkable CAGR of 49%, growing from ₹27,484 crore to ₹15.05 lakh crore over the last ten years. This growth reflects an increasing interest in private equity, venture capital, private credit, real estate, and other structured investment strategies that go beyond the limitations of public markets.
Among Category II AIFs, growth has been particularly pronounced, rising to ₹11.20 lakh crore from ₹14,707 crore, demonstrating a CAGR of 54%. Currently, India hosts 1,699 registered AIFs across all categories, highlighting an increasingly diverse investment landscape.
HNIs Fuel Demand
The rapid growth of alternative investments in India is influenced by an expanding base of affluent investors, improved regulatory frameworks, greater institutional involvement, and the ongoing globalization of domestic capital markets.
R Pallavarajan, Founder & Director of PMS Bazaar, noted that India’s ultra-wealthy individuals and high-net-worth investors are increasingly seeking diversification and reliable sources of returns. He emphasized that PMS and AIF platforms provide access to conviction-driven, strategy-oriented portfolios tailored for today’s complex market environment.
Alternatives Go Mainstream
George Heber Joseph, CIO & CEO of ASK Investment Managers, attributed the surge in interest to a new generation of investors, including startup founders and senior professionals, as well as growing participation from tier-II and tier-III cities. He highlighted the role of strong local relationship managers in this expansion.
Joseph stated that PMS and AIFs have transitioned from niche options to becoming a significant frontier in professional investment management. He forecasted that the growth story of alternatives has only just begun. To support this trend, PMS Bazaar has launched AIF Bazaar, a platform aimed at enhancing transparency and accessibility for Alternative Investment Funds, further reinforcing its commitment to industry knowledge.
Published on November 21, 2025
