PMS industry has potential to grow at over 20% CAGR as India’s investment universe expands: SEBI…

According to fresh market updates, Portfolio management services (PMS) could potentially grow at more than 20% CAGR as India's investment universe expands, Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey stated at the Association of Portfolio Managers in India’s (APMI) third annual investor conference on September 30.

“Most of the components of the investing universe in India have been talking around over 15% CAGR. In fact, PMS can go over 20%,” Pandey stated.

He did not frame the figure as a formal expansion projection, but pointed to the broader potential for India's investment products as wealth and participation deepen.

At the same time, Pandey stated PMS would have to establish where it fits within an increasingly diverse investment landscape, rather than compete directly with every other investment product.

“Let's not discount the fact that we have other means. They have a MF industry and AIF. These are components that are meeting different kind of clientele. They don't necessarily compete with each other,” he further noted.

PMS, he stated, caters to a niche clientele including high-net-worth individuals, while passive products can appeal to market participants who place greater emphasis on cost.

“Your industry has to find that niche and communicate it well. You'll have to build that trust,” Pandey stated.