PMS and AIF assets have grown 31.24% a year over the past decade, PMS Bazaar data shows

India’s alternative investment ecosystem has entered a crucial phase, with Portfolio Management Services (PMS) and Alternative Investment Funds (AIFs) collectively exceeding ₹23 lakh crore in assets under management (as of Sep 2025).

New data compiled by PMS Bazaar shows a decade of transformation characterised by rapid growth, increased institutional involvement, and a clear shift among wealthy investors towards advanced, alpha-focused strategies. These key figures were highlighted at the recent PMS Bazaar summit dedicated to the PMS and AIF industry, where PMS Bazaar launched AIF Bazaar, a specialised platform aimed at improving transparency and access for Alternative Investment Funds, further reinforcing its dedication to industry knowledge.

At the summit, PMS Bazaar published a special edition magazine focused on the latest trends, data, and insights within the alternative industry.

The key report highlights the increasing 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%, rising from ₹1.54 lakh crores to a total of ₹23.43 lakh crores (as on Sep 2025). This significant shift occurs at a time when global macro uncertainty is prompting investors to explore beyond traditional equity and debt instruments.

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.”

According to PMS Bazaar report, the PMS industry has expanded nearly sevenfold. Assets Under Management (AUM—including Discretionary & Non-Discretionary and excluding Co-investments and 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.

The Alternative Investment Funds (AIF) segment has experienced even stronger growth. Total AIF commitments increased from ₹27,484 crore in September 2015 to an impressive ₹15.05 lakh crore in September 2025, with a robust CAGR of 49.23%. This growth highlights rising demand for private equity, venture capital, private credit, real estate, and other structured strategies beyond the limits of public markets, per report.

Among all AIF categories, Category II AIFs, which account for about 75% of total commitments, have shown the steepest growth, rising from ₹14,707 crore to ₹11,20,589 crore over the same period, with a CAGR of 54.24% (as of Sep 2025). India now hosts 1,699 registered AIFs (as of Nov 17, 2025) across all categories, indicating a rapidly diversifying investment landscape.

George Heber Joseph, CIO and 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 globalisation 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 alternative growth story has only just begun.”