India’s
₹23.43 Lakh Crore Alternatives Boom: PMS and AIF Assets Mark a Decade of
High-Conviction Growth and Portfolio Transformation
·
PMS Bazaar launched AIF Bazaar, a dedicated
platform designed to enhance transparency and accessibility for Alternative
Investment Funds.
·
Over the past decade in India, PMS & AIF
Assets have grown at a 31.24% CAGR (as on Sep 2025), showing
exceptionally strong expansion
·
PMS Bazaar released a special edition
magazine dedicated to covering the latest trends, data and insights within the
alternates industry.
Mumbai, 21st Nov 2025 – India’s alternative investment ecosystem has entered a defining phase, with Portfolio Management Services (PMS) and Alternative Investment Funds (AIFs) collectively crossing ₹23 lakh crore in assets (as on Sep 2025).
New data compiled by PMS Bazaar reveals a decade-long transformation marked by rapid expansion, deepening institutional participation, and a decisive shift among affluent investors toward sophisticated, alpha-oriented strategies. These landmark figures were highlighted at the recent PMS Bazaar summit focused on the PMS and AIF industry, wherein PMS Bazaar launched AIF Bazaar, a dedicated platform designed to enhance transparency and accessibility for Alternative Investment Funds, further solidifying its commitment to industry knowledge.
At the summit, PMS Bazaar released a special edition magazine
dedicated to covering the latest trends, data and insights within the
alternates industry.
The key report highlights
the rising influence of alternatives in modern portfolios, noting that over the
past ten years, these investments have grown at a remarkable Compound Annual
Growth Rate (CAGR) of 31.24%, surging from ₹1.54 lakh crores to a total of
₹23.43 lakh crores (as on Sep 2025). This massive shift comes at a time when
global macro uncertainty is pushing investors to look beyond traditional equity
and debt instruments.
PMS Segment Sees Sevenfold
Expansion
According to PMS Bazaar, the
Portfolio Management Services (PMS) industry has expanded nearly sevenfold.
Assets Under Management (AUM—including Discretionary & Non-Discretionary,
and excluding Co-investments & Advisory AUM) surged from ₹1.27 lakh crore
in September 2015 to ₹8.37 lakh crore in September 2025, representing a 10-year
CAGR of 20.75%. This growth reflects a significant maturation of India’s
investment ecosystem, with the number of SEBI-registered portfolio managers
rising to 495.
AIF Commitments Soar with
49% CAGR
The Alternative Investment
Funds (AIF) segment has witnessed even more pronounced momentum. Total AIF
commitments have jumped from ₹27,484 crore in September 2015 to a staggering
₹15.05 lakh crore in September 2025, registering a formidable CAGR of 49.23%.
This surge underlines a growing appetite for private equity, venture capital,
private credit, real estate, and other structured strategies that transcend
public-market limitations.
Among all AIF categories,
Category II AIFs (which stands at about 75% of total commitments) have
demonstrated the steepest trajectory, skyrocketing from ₹14,707 crore to
₹11,20,589 crore over the same period, achieving a CAGR of 54.24% (as on Sep
2025). India now hosts 1,699 registered AIFs (as on Nov 17, 2025) across all
categories, indicating a rapidly diversifying investment universe.
Commenting on the structural
shift, Mr. R. Pallavarajan, Founder & Director, PMS Bazaar, said:
“India’s ultra-rich and HNI investors are rapidly increasing and seeking
diversification and reliable sources of alpha. PMS and AIF platforms allow them
to access conviction-led, strategy-driven portfolios that are built for today’s
complex market environment. The rise of alternatives is not incidental; it
reflects a conscious and sophisticated move toward performance-oriented
investing.”
Mr. George Heber Joseph, CIO
& CEO – (Equity), ASK Investment Managers, said, “Rising interest
in PMS and AIF products shows that India’s HNI and UHNI investors are
increasingly seeking research-backed, structured solutions to diversify and
grow their wealth. This surge is also driven by new-age investors, startup
founders, senior professionals and growing participation from Tier II and III
cities, supported by strong on-ground relationship managers.”
He added, “India’s
alternatives market is expanding rapidly, powered by a larger affluent base,
clearer regulations, deeper institutional involvement, and the gradual
globalization of capital markets. PMS and AIFs are no longer niche; they are
emerging as the next frontier of professional investment management. The data
is clear; India’s alternatives growth story has only just begun.”
India’s rapid expansion in alternatives is being shaped by a growing affluent investor base, clearer regulatory frameworks, deeper institutional participation, and the gradual globalization of domestic capital markets.
PMS and AIFs are no longer niche
vehicles; they represent the next frontier of professional investment
management in India, blending institutional rigor with bespoke strategies
aligned to the country’s growth trajectory. The data signals a clear trend: the
alternative investments revolution in India is still in its early innings.
About ASK Investment Managers Limited
ASK Investment Managers Limited was one of the first companies to obtain a Portfolio Management Services license in India and is currently one of the largest companies offering Discretionary Domestic Equity Portfolio Management Services as on Mar 2025, as per SEBI data. Among the industry-first initiatives, they were the first Portfolio Management Company to set up operations in GIFT city for overseas investors and have launched India's first AIF with digital client onboarding, a paperless and easy-to-follow process.
They invest exclusively in listed Indian equities for clientele who
are India-domiciled, as well as offshore, through segregated accounts and
commingled funds. Please
read and refer to the disclaimers and disclosure document carefully before
investing at https://www.askfinancials.com/pdf/Disclosure/Disclaimer%20Note%20-%20ASKIM.pdf
