New Delhi, May 28 (IANS) India’s portfolio management services (PMS) industry expanded to Rs 42.2 lakh crore in April 2026, up 2.1 per cent month-on month, indicating healthy investor participation entering FY27, a report said on Thursday.

The report from Association of Portfolio Managers in India (APMI) said the client base stood at approximately 2.12 lakh accounts, with a 1.7 per cent adjustment during the month.

A net inflow of Rs 25,088 crore was recorded in April, compared to a net outflow of Rs 648 crore in March, driven by a 27 per cent month-on-month expansion in inflows.

Equity grew 13.8 per cent, plain debt expanded 0.8 per cent, and mutual funds increased 5.4 per cent in the portfolio, while derivatives experienced notable repositioning, the report said.

Domestic investors accounted for 91 per cent of the client base and 95 per cent of total AUM. Foreign AUM expanded 7.8 per cent month-on month, while domestic AUM also recorded a healthy 1.8 per cent expansion, reflecting steady underlying allocations at the start of the fiscal year.

Provident funds continued to anchor domestic assets at approximately 80 per cent of domestic AUM, while distributor additions continued into FY27, supporting broader PMS penetration.

Listed equity assets grew 13.6 per cent month-on-month, reflecting sustained investor preference towards equity-oriented opportunities. In the unlisted space, equity assets surged 38.8 per cent, while unlisted debt grew sharply by 150.5 per cent, indicating rising interest in private market investments.

Foreign AUM rose 7.8 per cent in April, while domestic AUM remained broadly stable.

“Capital is no longer moving only towards traditional equity exposure, but increasingly towards specialised and diversified strategies across listed and unlisted markets. The PMS industry is gradually becoming a strategic portfolio allocation framework for sophisticated investors rather than a tactical investment avenue,” said Vikas Khemani, Board Member, APMI.

BSE Sensex rose 6.9 per cent and the Nifty 50 gained 7.5 per cent month-on-month in April, while the BSE Midcap and BSE Smallcap indices advanced 13.8 per cent and 19.6 per cent, respectively.

—IANS

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