India's Portfolio Management Services (PMS) industry recorded a 2 per cent month-on-month rise in assets under management to approximately ₹44.11 lakh crore in July 2026, while the client base expanded 1.3 per cent to nearly 2.23 lakh accounts, according to data released by The Association of Portfolio Managers in India (APMI) on 21 August. Both AUM and client numbers were up roughly 11 per cent on a year-on-year basis, underscoring sustained momentum in the high-net-worth investment segment.

Key Developments in July

Since the start of fiscal year 2027, PMS AUM has climbed 4.3 per cent and the client base has grown 5.2 per cent, signalling steady accretion despite broader market volatility. July also recorded the highest monthly addition of distributors in FY27 so far, with 1,226 individual and 181 non-individual distributors joining the ecosystem. Cumulative distributor counts now stand at 21,650 individual and 3,144 non-individual, reflecting widening reach across investor segments.

Segment Performance

The discretionary segment continued to anchor the industry, accounting for 84.7 per cent of total AUM and 95.5 per cent of the client base. Among service categories, co-investment posted the highest month-on-month AUM growth at 10.2 per cent, followed by advisory at 3 per cent, non-discretionary at 2.9 per cent, and discretionary at 1.8 per cent.

Capital Flows Surge

Total PMS net inflows rose sharply to ₹4.66 lakh crore in July, up from ₹3.55 lakh crore in June. Discretionary services drove the bulk of inflows at ₹4.62 lakh crore, while non-discretionary services recorded net inflows of ₹3,797 crore during the month. The acceleration in flows points to growing conviction among high-net-worth investors in actively managed, customised portfolio strategies.

Domestic Investors Remain Core

Domestic investors continued to form the backbone of the PMS ecosystem, accounting for 91 per cent of the total client base and 95 per cent of total AUM in July. Domestic AUM grew 2 per cent month-on-month. Notably, PF and EPFO assets accounted for approximately 79 per cent of the domestic AUM base, highlighting the outsized role of institutional retirement money in the industry's scale.

Industry Outlook

Vikas Khemani, Chairman of APMI, said: 'The PMS industry has reached a scale where its next phase must be defined by greater and wider investor participation, coupled with greater ease of investing. The expanding investor and distributor base reflects the growing acceptance of PMS and presents an opportunity to take PMS solutions to a broader pool of investors.' The record distributor additions in July suggest the industry is actively building the infrastructure for that next phase of retail-adjacent growth.