India’s wealth management landscape is changing fast. A striking 27% increase in PMS (Portfolio Management Services) clients in 2025 signals a clear trend – investors are seeking more personalised, high-touch investment strategies.
This shift raises a few key questions: Why are investors looking for some best PMS services in India? What does this growth mean for mutual funds and their overlap with PMS? And most importantly, what should investors make of this surge?
What Is PMS and How Is It Different From Mutual Funds?
Before diving into the growth story, let’s clarify PMS.
- Mutual Funds: Pool money from thousands of investors into a common portfolio. Every investor owns units of the same portfolio.
- PMS: Tailored portfolios designed for individual investors, managed by professionals. It’s like hiring a personal chef instead of dining at a buffet.
The minimum investment requirement of ₹50 lakh makes PMS accessible mainly to high-net-worth individuals (HNIs). Unlike mutual funds, PMS investors directly own securities in their portfolio, allowing for greater control and transparency.
The Numbers Behind the Growth
The PMS industry has witnessed remarkable expansion:
- Clients grew 27% in 2025, crossing the 1.5 lakh mark.
- AUM (Assets Under Management) rose from ₹7.3 lakh crore in 2014 to over ₹32 lakh crore in 2024, showing consistent momentum.
- Despite COVID-19 disruptions, PMS AUM stayed resilient, even when client numbers briefly dipped.
This resilience highlights the growing trust in personalised wealth solutions.
Why Are More Investors Choosing PMS?
- Demand for Customisation
Investors want portfolios aligned with their specific risk appetite and financial goals – something mutual funds can’t always offer.
- HNI Growth in India
India is producing millionaires at one of the fastest rates globally. This wealth creation has boosted demand for PMS.
- Fee Structures and Transparency
SEBI’s tightening of mutual fund distributor commissions made PMS a more attractive alternative for advisors and investors alike.
- Technology and Access
Digital dashboards now allow investors to track performance in real-time, making PMS more transparent and user-friendly than ever.
PMS vs Mutual Funds: The Overlap
While PMS and mutual funds cater to different investor bases, there’s a growing overlap:
| Feature | Mutual Funds | PMS | Overlap |
| Entry Barrier | As low as ₹500 | Minimum ₹50 lakh | Both professionally managed |
| Personalisation | Standardised portfolios | Fully customised | Use expert fund managers |
| Transparency | NAV-based | Stock-level holdings | Disclosures to SEBI |
| Liquidity | High (daily) | Lower (subject to terms) | Both offer withdrawal facilities (SWP options) |
The overlap lies in the systematic withdrawal plans (SWPs) – both PMS and mutual funds offer them. For HNIs, PMS provides flexibility with large corpus investments, while mutual funds serve mass investors seeking disciplined returns.
What the 27% Rise Means for 2025
This surge in PMS clients tells us:
- Investor maturity is rising – people are ready to pay for professional, personalised advice.
- Diversification is key – investors are looking beyond mutual funds for wealth growth.
- Wealth concentration is fuelling PMS growth – as India’s ultra-HNI base expands, PMS is becoming their go-to wealth management tool.
Road Ahead: PMS in India Beyond 2025
- The PMS and AIF industry is projected to grow at a 26% CAGR, touching ₹43 lakh crore by 2028.
- Expect lower entry barriers, making PMS more accessible to upper-middle-class investors.
- More innovation in strategies – from sector-focused portfolios to ESG-linked investments.
- Technology will deepen transparency with AI-driven portfolio analytics.
Key Takeaways for Investors
- PMS is not a replacement for mutual funds but a complement for larger portfolios.
- Be mindful of mutual funds overlap in PMS portfolios to avoid concentration risks.
- Choose PMS providers with a strong track record, transparent fee structures, and robust digital platforms.
Frequently Asked Questions
- What is the minimum investment in PMS?
₹50 lakh, as mandated by SEBI. - Is PMS better than mutual funds?
It depends on your corpus and goals. PMS suits HNIs seeking customisation; mutual funds are ideal for retail investors. - Can PMS portfolios overlap with mutual funds?
Yes. Overlap happens when both PMS and mutual funds hold similar stocks. It’s important to track and manage this. - What returns can PMS deliver?
Studies show PMS strategies have historically outperformed benchmarks by 70% on average, compared to 48% for mutual funds. - Should I diversify across PMS and mutual funds?
Yes. Combining both allows balance – PMS for personalisation, mutual funds for liquidity and accessibility.
Conclusion
The 27% rise in PMS clients in 2025 is more than a statistic – it’s a signal of India’s financial maturity. As HNIs grow in number, PMS services in India are becoming the cornerstone of wealth management.
But PMS isn’t just about exclusivity. With regulatory reforms, digital innovations, and growing awareness, its reach will only expand. For investors, the road ahead is about balancing PMS and mutual funds smartly to build resilient, growth-oriented portfolios.
Are you exploring PMS services in India? Speak to Dezerv’s wealth experts to understand how PMS can fit into your investment journey.