Dec 2025

Exploring PMS and AIFs Trends

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India’s Portfolio Management Services (PMS) and Alternative Investment Funds (AIFs) have grown at an impressive CAGR of around 33% over the past decade (from FY14 to FY25) and are on track to collectively exceed INR 100 lakh crore in assets by 2030, according to PMS Bazaar estimates.*

As of September 2025, PMS assets (Discretionary + Non-Discretionary) stand at ₹8.37 lakh crore (excluding EPFO/PF contributions), while AIFs account for ₹15.05 lakh crore (in commitments raised), with Category-II AIFs holding the lion’s share as of September 2025.

In this blog, we will explore the evolving PMS and AIF trends crucial for investors in India, aiming to navigate the dynamic financial environment effectively.

Shifts in India’s PMS and AIF Landscape

1. Alternative Asset Classes Gaining Traction:

The pursuit of diversification and higher yields is steering investors towards alternative asset classes like private equity, real estate, and infrastructure, which are primarily accessed via AIFs in India. According to SEBI, cumulative AIF Investments made at the end of September 2025, stand at INR 15,05,372 crores (in commitments raised). Within this, Category II AIFs contributed around INR 11,20,589 crores (in commitments raised) of the total AIF Investments made.

2. Regulatory Changes:

The regulatory landscape for PMS and AIFs is evolving, with the Securities and Exchange Board of India (SEBI) implementing measures and strengthening regulations to enhance transparency and foster greater investor confidence.

3. Customised Investment Models:

The demand for customised investment solutions is on the rise, as investors increasingly seek portfolios aligned with their specific financial goals and risk profiles. To meet this need, Portfolio Management Services (PMS) providers are offering a range of tailored, bespoke strategies.

4. Increased Adoption of Quantitative PMS Strategies:

Quantitative strategies have seen growing interest within Portfolio Management Services (PMS). Quant PMS relies on data-driven models and statistical techniques to make objective investment decisions, minimising human biases and enhancing consistency. These strategies are designed to analyse historical data, identify market trends early, and make decisions based on pre-defined rules.

As investors' interest in systematic and disciplined approaches grows, Quant PMS continues to gain traction for its potential to deliver risk-adjusted returns.

This allows for fine-tuned asset allocation and strategy design, offering investors a more disciplined investment experience. Portfolio Management Services and Alternative Investment Funds are at the forefront of this transformation, in our view, in offering investors diverse investment avenues.

Alchemy Capital Management - Portfolio Management Services in India

If you are looking for PMS Services in India, Alchemy Capital Management is one of the largest Portfolio Management Services providers in India. Established in 1999, the SEBI-registered firm is helmed by Hiren Ved, serving as the Director and CIO. Alchemy caters to high-net-worth individuals, family offices, and institutions.

Alchemy places a strong emphasis on thorough research and long-term investments. With a legacy of over 2 decades, Alchemy has built a reputation for trust, integrity, and expertise. Its stable and experienced team of investment professionals possesses deep industry knowledge, enabling the firm to navigate market trends successfully. For more details, please connect with us at contactus@alchemycapital.com

*India’s PMS and AIF sectors are rapidly evolving, with assets expected to cross ₹100 lakh crore by 2030. Key trends include rising adoption of Quant PMS strategies, growing interest in alternative asset classes like real estate and private equity, evolving SEBI regulations, and increasing demand for personalised portfolio models. Together, these shifts are shaping a dynamic investment landscape for high-net-worth investors and institutions.

Frequently Asked Questions (FAQs)

What is driving the growth of PMS & AIF sectors in India?
- *India’s PMS and AIF sectors have grown at a CAGR of about 33% from FY14 to FY25, driven by rising investor interest in diversification, quantitative strategies, alternative assets, need for customised investment models.

What are Quantitative PMS strategies?
- Quantitative PMS strategies use data-driven models and statistical techniques to make objective-based investment decisions. These methods minimise human bias and are designed to analyse historical data and market trends using predefined rules.

Sources: *PMS and AIF assets set to surpass Rs 100 lakh crore mark by 2030 - The Economic Times

Disclaimer: This blog is for informational purposes only and should not be considered an offer or solicitation to buy or sell any securities or make any investments. We recommend readers take independent advice before making any investment decisions. Please refer to our Disclaimer and Disclosures for more details.