₹23.43 lakh cr milestone: With 31% CAGR over a decade, PMS & AIFs emerge as India’s new alpha engines

India’s alternative investment space has hit a new milestone, with Portfolio Management Services (PMS) and Alternative Investment Funds (AIFs) collectively managing ₹23.43 lakh crore in assets as of September 2025, according to data from PMS Bazaar. 

At its annual summit held in Mumbai, PMS Bazaar also unveiled AIF Bazaar, a platform aimed at enhancing transparency and accessibility in the AIF ecosystem. The tool is expected to help investors evaluate products and fund managers more effectively as participation in alternatives grows. 

PMS and AIF assets have grown at a compound annual growth rate (CAGR) of 31.24% over the past decade, rising from ₹1.54 lakh crore in 2015 to ₹23.43 lakh crore this year. This surge reflects a shift among affluent Indian investors toward high-conviction, alpha-oriented strategies that go beyond traditional public-market investments. 

Within the PMS segment, assets under management — including discretionary and non-discretionary mandates — grew from ₹1.27 lakh crore to ₹8.37 lakh crore between 2015 and 2025, marking a 20.75% CAGR. The number of SEBI-registered portfolio managers has risen to 495, underlining growing institutional depth and investor appetite for professional management. 

The AIF segment has witnessed even sharper growth. Total commitments have soared from ₹27,484 crore in 2015 to ₹15.05 lakh crore in 2025, registering a 49.23% CAGR. Category II AIFs—which include private equity, private credit, and structured debt—led the growth, with commitments surging from ₹14,707 crore to ₹11.20 lakh crore, reflecting a 54.24% CAGR. 

India now has 1,699 registered AIFs, a testament to the segment's product diversity and expanding institutional base. 

“The rise in alternatives mirrors the changing profile of India’s wealthy,” said R. Pallavarajan, Founder & Director, PMS Bazaar. “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 designed for today’s complex market environment.” 

He added that this rise is “not incidental” but a result of a “conscious and sophisticated move toward performance-oriented investing.” 

George Heber Joseph, CIO & CEO (Equity) at ASK Investment Managers, pointed out that the expansion is also being powered by investors outside traditional urban centers. “India’s HNI and UHNI investors are increasingly seeking research-backed, structured solutions. Startup founders, senior professionals and investors in Tier II and III cities are contributing meaningfully to this growth.” 

He noted that the alternatives market is thriving due to “clearer regulations, deeper institutional involvement and the gradual globalization of domestic capital markets.”