Experts suggest that as market conditions stabilise, investor activity may rebound, particularly among high-net-worth individuals seeking tailored portfolio strategies.

Net inflows into portfolio management services (PMS) fell 84 per cent month-on-month to ₹4,085 crore in May from ₹25,185 crore in April, as gross inflows declined 44 per cent to ₹25,714 crore from ₹46,250 crore, reflecting a sharp slowdown in fresh allocations after an unusually strong April.

Outflows, however, remained largely unchanged at ₹21,629 crore compared with ₹21,066 crore a month earlier, according to the latest PMS Industry Compendium released by the Association of Portfolio Managers in India (APMI).

The moderation in net inflows in May comes after an exceptionally strong April, which saw elevated lump-sum allocations. “A mix of profit-booking, relatively softer gross inflows amid global uncertainties, and steady outflows led to a temporary compression in net flows in May," said Sandeep Jethwani, a board member at APMI.

Jethwani said the underlying demand for PMS remains resilient, with early trends in June suggesting a pickup in investor activity and risk appetite with improving global cues and easing geopolitical tensions.

“As markets stabilise, investors are increasingly gravitating towards differentiated, actively managed strategies for long-term wealth creation. We expect inflows to normalise and gradually strengthen over the coming months, driven by sustained participation from HNIs and UHNIs, alongside a structural shift towards bespoke portfolio solutions,” Jethwani said.

Shahzad Madon, Managing Director and Chief Executive Officer of TCG Asset Management, said April's flows were also aided by significant EPFO allocations, while ex-EPFO inflows moderated in May amid heightened market volatility and global uncertainties. “This has weighed on near-term PMS allocations. However, as macroeconomic conditions stabilise, we expect investor flows to gradually return to the listed equities over the medium to long term,” he said.

Agreeing with Madon, a CEO of a domestic wealth management company said, “HNIs haven’t exited equities, but they have clearly turned cautious amid the West Asia uncertainty. This cohort (HNIs) tends to chase opportunity; a few months ago it was gold and silver, today that conversation has already moved on.”

Despite the moderation in net inflows, the industry's assets under management (AUM) rose 0.5 per cent month-on-month, or by ₹20,009 crore to ₹42.49 lakh crore in May, while the client base remained broadly stable at 2.12 lakh, declining by just 310 accounts during the month.

The discretionary segment continued to dominate the industry, accounting for 84.9 per cent of total AUM and 95.4 per cent of the client base. Equity assets under management grew 2.3 per cent during the month, while plain debt assets rose 0.5 per cent. Domestic investors continued to account for 95 per cent of industry AUM, with PF/EPFO remaining the largest contributor, accounting for around 80 per cent of domestic assets.

PMS distributor registrations also continued to expand, with 739 individual and 113 non-individual distributors added during May, taking the cumulative base to 19,643 and 2,840 respectively.

Published on June 24, 2026