India’s portfolio management services (PMS) assets rose to ₹43.3 lakh crore in June 2026, marking a 1.8% monthly growth. Client accounts increased by 4%, reaching 2.20 lakh, with domestic investors driving 95% of total assets.
Detailed Coverage
The Indian portfolio management services (PMS) sector saw notable growth in June 2026, with assets under management (AUM) climbing to ₹43.3 lakh crore. This 1.8% monthly rise indicates a faster pace of expansion compared to the 0.5% growth recorded in May. Alongside the rising AUM, the industry added more individual investors, with the total number of client accounts reaching approximately 2.20 lakh, a 4% increase from the previous month.
Discretionary Services and Inflows
Most of this growth originated from the discretionary segment, where PMS providers make investment decisions on behalf of their clients. This segment continued to hold the largest portion of industry assets. The industry recorded net inflows of ₹3.55 lakh crore during the month, suggesting that investors are continuing to allocate significant capital toward professionally managed portfolios despite broader market fluctuations.
Evolving Asset Allocation Strategies
Investors appear to be diversifying their holdings across different asset classes. While equity-focused assets grew by 1.4% and plain debt assets increased by 1.2% in June, the most significant movement occurred in mutual fund allocations, which jumped by 14.6%. This shift suggests that PMS providers are increasingly using mutual funds to build diversified portfolios for their clients, moving beyond direct stock or bond picking.
Domestic Dominance in PMS
Domestic investors remain the primary drivers of the PMS industry in India, accounting for 91% of total client accounts and 95% of the total assets under management. Domestic AUM grew by 1.9% in June, which helped offset a slight 0.2% decline in foreign-held assets. A major pillar supporting this domestic growth is the contribution from provident funds and EPFO-related mandates, which now represent nearly 79% of all domestic PMS assets.
For investors, the key monitorable remains how these allocation strategies perform in changing interest rate environments. Since debt and mutual fund components are becoming larger parts of the portfolio mix, the sector's performance will likely remain sensitive to shifts in bond yields and overall market sentiment. Investors may also track whether the trend of rising mutual fund allocations continues in the coming months, as this reflects a change in how PMS managers are balancing risk and return for their clients.