Axis Asset Management Company has consolidated its portfolio management services to drive growth, targeting a Rs 20,000 crore asset base in its alternatives segment over the next three years. The firm plans to launch three new products this year to expand its reach among high-net-worth investors.
Axis Asset Management Company (Axis AMC) is moving to aggressively scale its Alternatives business, setting a target to reach Rs 20,000 crore in assets under management (AUM) over the next three years. This growth strategy follows the recent consolidation of the Portfolio Management Services (PMS) division from Axis Securities into the AMC, a shift aimed at streamlining operations and unifying the firm's investment framework.
The combined PMS business currently manages approximately Rs 15,000 crore. By bringing the PMS division under the AMC umbrella, the firm intends to improve its access to institutional research and centralized execution systems. This structural change is also expected to help the firm reach a wider pool of investors by tapping into distribution channels, such as private banking platforms, that have traditionally favored the AMC structure over broking entities. Naveen Kulkarni, who leads the PMS and Listed Equity Alternates vertical, is spearheading the effort to expand the firm’s footprint in this high-ticket investment space.
To drive this growth, Axis AMC has outlined a roadmap that includes the launch of three new products within the current fiscal year. These offerings will include one PMS product and two Category-III Alternative Investment Funds (AIFs). The firm plans to focus these funds on thematic investments and high-conviction strategies across small-cap and mid-cap stocks. In the alternatives space, the company is looking to utilize AIFs to access late-stage unlisted companies and pre-IPO opportunities, which may offer different return profiles compared to traditional mutual funds.
Investors should monitor the regulatory landscape closely, as the alternatives segment is sensitive to changes in policy. The firm is actively watching for developments from the Securities and Exchange Board of India (SEBI), particularly regarding potential shifts in PMS investment thresholds, such as the proposed Rs 25-lakh tier for mutual-fund-only PMS. While the firm has integrated its operations to improve efficiency, the ability to maintain consistent performance across different market cycles remains a primary factor for growth.
Competition in the alternatives and wealth management space is increasing, with both traditional financial institutions and specialized new-age firms vying for the same high-net-worth investor capital. The success of this expansion will depend on the firm's ability to navigate market volatility, manage regulatory requirements, and deliver on its product strategy. The next important updates for investors to track will be the performance and adoption of the newly planned AIF and PMS products, as well as any fresh regulatory guidelines issued by SEBI.