SEBI Chairman Predicts 20% Growth for PMS Industry Driven by Rising Investor Participation

New Delhi, September 30 (Daily Kiran) : The Portfolio Management Services (PMS) industry in India is projected to grow at an annual rate of 20%, thanks to a surge in investor participation in the stock market. This insight was shared by Tuhin Kanta Pandey, Chairman of the Securities and Exchange Board of India (SEBI), during the third annual investor conference organized by the Association of Portfolio Managers in India (APMI).Pandey highlighted that various sectors within India's investment landscape are expanding at rates exceeding 15%, paving the way for the PMS industry's anticipated growth. However, he clarified that this figure should not be viewed as an official growth estimate but rather as a reflection of the potential for wealth creation and enhanced investor engagement. He acknowledged the need for the PMS industry to adapt to the rapidly evolving and diverse investment environment, where products like mutual funds and Alternative Investment Funds (AIFs) cater to different investor needs."We should not overlook that we have other options available," Pandey stated. "Our mutual fund industry and AIFs serve various types of clients, and it's not necessary for them to compete directly with each other." Pandey noted that PMS specifically addresses the requirements of high-net-worth individuals, while passive investment products may attract cost-conscious investors. PMS offers professionally managed investment portfolios, distinguishing itself from mass-market products like mutual funds.As competition and options in the investment market continue to grow, the PMS industry must effectively communicate its unique value proposition and earn the trust of investors.