The Indian stock market has been witnessing a significant growth in the past few years, and the latest numbers released by the Securities and Exchange Board of India (SEBI) only reinforce this fact. According to SEBI, the assets under management (AUM) of Portfolio Management Services (PMS) have jumped sevenfold to a whopping ₹8.37 lakh crore. This remarkable growth is accompanied by a rise in the number of SEBI-registered managers to 495. This is indeed a remarkable achievement for the Indian stock market and a testament to the growing confidence of investors in PMS.
PMS is a specialized investment service that caters to high net worth individuals (HNIs) and institutional investors. It allows them to invest in a customized portfolio of stocks, debt, and other securities managed by a professional fund manager. PMS has gained popularity in recent years due to its potential for higher returns and personalized investment strategies. The significant increase in AUM and the number of registered managers is a clear indication of the growing demand for PMS in the Indian market.
The rise in PMS assets can be attributed to various factors, including the overall growth of the Indian economy, favorable government policies, and the increasing participation of retail investors in the stock market. The Indian economy has been on a steady growth trajectory, and this has had a positive impact on the stock market. The government’s focus on economic reforms and initiatives like Make in India have also boosted investor confidence, leading to a surge in PMS investments.
Moreover, the Indian stock market has been performing exceptionally well in recent years, with the benchmark indices reaching new highs. This has attracted more investors to the market, and PMS has emerged as a preferred investment option for HNIs and institutional investors. PMS offers them the opportunity to invest in a diverse portfolio of stocks, which is managed by experienced professionals, thereby reducing the risk associated with stock market investments.
Another significant factor contributing to the growth of PMS assets is the increasing participation of retail investors. With the rise of digital platforms and easy access to information, retail investors are now more aware and confident about investing in the stock market. They are also looking for personalized investment options that can cater to their specific needs and risk appetite, making PMS an attractive choice for them.
The increase in the number of SEBI-registered managers is also a positive sign for the PMS industry. SEBI has stringent regulations in place for PMS managers, ensuring that only qualified and experienced professionals can offer PMS services. This has instilled trust and confidence in investors, leading to a rise in the number of registered managers. It also reflects the growing professionalism and maturity of the PMS industry in India.
The growth of PMS assets and the number of registered managers is not only a positive sign for the Indian stock market but also for the overall economy. PMS investments provide a boost to the capital market, which in turn helps in the growth of businesses and the creation of job opportunities. It also encourages more companies to go public, providing investors with more options to diversify their portfolio.
In conclusion, the significant jump in PMS assets to ₹8.37 lakh crore and the increase in the number of SEBI-registered managers to 495 is a clear indication of the growing confidence of investors in PMS. The Indian stock market has been on a steady growth path, and PMS has emerged as a preferred investment option for HNIs, institutional investors, and even retail investors. With the right regulations and policies in place, PMS has the potential to become a major contributor to the growth of the Indian economy.
