Wealthy investors appear to be reposing greater faith in their portfolio managers for investments or advisory services, as the assets under management of such entities has reached a record level of Rs 6.2 lakh crore in the Indian capital markets.
According to latest data available with the market regulator Securities and Exchange Board of India, assets under management of portfolio managers increased to Rs 6,17,208 crore at the end of May, from Rs 6,11,628 crore in the previous month.
This also marks the 13-consecutive monthly rise in AUMs of portfolio managers, who mostly manage investments or provide advisory services to HNIs. The total AUM has nearly doubled since the data were first released by SEBI in December 2010.
During May, portfolio managers, individually handled assets to the tune of Rs 5.09 lakh crore for their discretionary services besides Rs 78,450 crore for advisory services and another Rs 28,844 crore for non—discretionary investments.
Of the total assets managed by portfolio mangers, about Rs 4.74 lakh crore was contributed by funds from employee provident fund organisation (EPFO) or provident fund, SEBI data showed.
Besides, the number of clients for portfolio managers also grew to 65,667 in May, from 65,063 in the preceding month.
However, the number of their clients has significantly declined from the levels seen in December 2010.
Portfolio managers, who run portfolio management services accept investments of up to Rs 25 lakh or stocks worth this level.
As per SEBI data, portfolio managers handled debt assets to the tune of Rs 4.82 lakh crore and listed and unlisted equity worth Rs 30,793 crore at the end of May.
In addition, portfolio managers managed AUM worth Rs 8,843 crore of mutual funds during the period.