• PMS Bazaar launched AIF Bazaar, a dedicated platform designed to enhance transparency and accessibility for Alternative Investment Funds.
  • Over the past decade in India, PMS & AIF Assets have grown at a 31.24% CAGR (as on Sep 2025), showing exceptionally strong expansion
  • PMS Bazaar released a special edition magazine dedicated to covering the latest trends, data and insights within the alternates industry.

Mumbai : India’s alternative investment ecosystem has entered a defining phase, with Portfolio Management Services (PMS) and Alternative Investment Funds (AIFs) collectively crossing ₹23 lakh crore in assets (as on Sep 2025). New data compiled by PMS Bazaar reveals a decade-long transformation marked by rapid expansion, deepening institutional participation, and a decisive shift among affluent investors toward sophisticated, alpha-oriented strategies. These landmark figures were highlighted at the recent PMS Bazaar summit focused on the PMS and AIF industry, wherein PMS Bazaar launched AIF Bazaar, a dedicated platform designed to enhance transparency and accessibility for Alternative Investment Funds, further solidifying its commitment to industry knowledge. At the summit, PMS Bazaar released a special edition magazine dedicated to covering the latest trends, data and insights within the alternates industry.

The key report highlights the rising influence of alternatives in modern portfolios, noting that over the past ten years, these investments have grown at a remarkable Compound Annual Growth Rate (CAGR) of 31.24%, surging from ₹1.54 lakh crores to a total of ₹23.43 lakh crores (as on Sep 2025). This massive shift comes at a time when global macro uncertainty is pushing investors to look beyond traditional equity and debt instruments.

PMS Segment Sees Sevenfold Expansion.

According to PMS Bazaar, the Portfolio Management Services (PMS) industry has expanded nearly sevenfold. Assets Under Management (AUM—including Discretionary & Non-Discretionary, and excluding Co-investments & Advisory AUM) surged from ₹1.27 lakh crore in September 2015 to ₹8.37 lakh crore in September 2025, representing a 10-year CAGR of 20.75%. This growth reflects a significant maturation of India’s investment ecosystem, with the number of SEBI-registered portfolio managers rising to 495.

AIF Commitments Soar with 49% CAGR

The Alternative Investment Funds (AIF) segment has witnessed even more pronounced momentum. Total AIF commitments have jumped from ₹27,484 crore in September 2015 to a staggering ₹15.05 lakh crore in September 2025, registering a formidable CAGR of 49.23%. This surge underlines a growing appetite for private equity, venture capital, private credit, real estate, and other structured strategies that transcend public-market limitations.

Among all AIF categories, Category II AIFs (which stands at about 75% of total commitments) have demonstrated the steepest trajectory, skyrocketing from ₹14,707 crore to ₹11,20,589 crore over the same period, achieving a CAGR of 54.24% (as on Sep 2025). India now hosts 1,699 registered AIFs (as on Nov 17, 2025) across all categories, indicating a rapidly diversifying investment universe.

Commenting on the structural shift, Mr. R. Pallavarajan, Founder & Director, PMS Bazaar, said: “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. The rise of alternatives is not incidental; it reflects a conscious and sophisticated move toward performance-oriented investing.”

Mr. George Heber Joseph, CIO & CEO – (Equity), ASK Investment Managers, said, “Rising interest in PMS and AIF products shows that India’s HNI and UHNI investors are increasingly seeking research-backed, structured solutions to diversify and grow their wealth. This surge is also driven by new-age investors, startup founders, senior professionals and growing participation from Tier II and III cities, supported by strong on-ground relationship managers.”

He added, “India’s alternatives market is expanding rapidly, powered by a larger affluent base, clearer regulations, deeper institutional involvement, and the gradual globalization of capital markets. PMS and AIFs are no longer niche; they are emerging as the next frontier of professional investment management. The data is clear; India’s alternatives growth story has only just begun.”

India’s rapid expansion in alternatives is being shaped by a growing affluent investor base, clearer regulatory frameworks, deeper institutional participation, and the gradual globalization of domestic capital markets. PMS and AIFs are no longer niche vehicles; they represent the next frontier of professional investment management in India, blending institutional rigor with bespoke strategies aligned to the country’s growth trajectory. The data signals a clear trend: the alternative investments revolution in India is still in its early innings.