Assets of portfolio management services (PMS) and alternative investment funds (AIFs) are set to grow 2.5 times to Rs 30 trillion in the next three years according to estimates by PMS Bazaar, a data tracker.

Assets of AIFs grew 42.5% to Rs 6.94 trillion across all three categories for the quarter ended June 2022. PMS assets rose 23.2% year-on-year to Rs 4.89 trillion as of October 31.

Excellent disclosures, a supportive regulatory environment and robust returns from newer investment avenues may help these two asset classes take off among investors, said Daniel GM, founder-director at PMS Bazaar.

Vikaas Sachdeva, managing director, Sundaram Alternates, said: “The alternates space has been evolving rapidly to meet the requirements of the burgeoning ultra-HNI segment. One can understand the potential of this industry if one just looks back at China in 2007, which was at a similar stage of evolution in terms of the financial landscape. At the very least, the industry has the potential to grow 3x in the next five years in line with the growing aspirations of wealthy Indians.”