India’s Alternative Investment Ecosystem Enters Defining Phase, With Portfolio Management Services & AIFs Collectively Crossing ₹23 Lakh Crore In Assets

Mumbai: India’s alternative investment ecosystem has entered a defining phase, with portfolio management services (PMS) and alternative investment funds (AIFs) collectively crossing Rs 23 lakh crore in assets (as on September 2025) in the last 10 years, a report showed on Friday. Over the past 10 years, these investments have grown at a remarkable compound annual growth rate (CAGR) of 31.24 per cent, surging from Rs 1.54 lakh crore to Rs 23.43 lakh crore.

This massive shift comes at a time when global macro uncertainty is pushing investors to look beyond traditional equity and debt instruments, according to data compiled by PMS Bazaar. It reveals a decade-long transformation marked by rapid expansion, deepening institutional participation, and a decisive shift among affluent investors toward sophisticated, alpha-oriented strategies.

The PMS industry has expanded nearly sevenfold. Assets Under Management (AUM) surged from Rs 1.27 lakh crore in September 2015 to Rs 8.37 lakh crore in September 2025, representing a 10-year CAGR of 20.75 per cent. This growth reflects a significant maturation of India’s investment ecosystem, with the number of SEBI-registered portfolio managers rising to 495. The AIF segment witnessed even more pronounced momentum.

Total AIF commitments jumped from Rs 27,484 crore in September 2015 to a staggering Rs 15.05 lakh crore in September 2025, registering a formidable CAGR of 49.23 per cent. This surge underlines a growing appetite for private equity, venture capital, private credit, real estate, and other structured strategies that transcend public-market limitations, the report mentioned. “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,” said R. Pallavarajan, Founder and Director, PMS Bazaar. The company has also launched AIF Bazaar, a dedicated platform designed to enhance transparency and accessibility for Alternative Investment Funds. According to the report, among all AIF categories, Category II AIFs (which stands at about 75 per cent of total commitments) have demonstrated the steepest trajectory, skyrocketing from Rs 14,707 crore to Rs 11,20,589 crore over the same period, achieving a CAGR of 54.24 per cent.

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