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India’s PMS & AIF Industry Records Decade-High Growth; GIFT City Emerges As Capital Gateway: Report
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AIFs and PMS see rapid growth among HNIs, with AIF assets reaching Rs 15,05,372 crore by 2025.
Alternative Investments Surge as PMS–AIF Ecosystem Enters High-Growth Phase
Alternative Investment Funds (AIFs) and Portfolio Management Services (PMS) are drawing investors interest in current times, especially high net worth individuals (HNIs). According to data from the PMS & AIF Special Edition 2025, AIFs have grown 49.23 per cent CAGR from Rs 27,484 crore in 2015 to Rs 15,05,372 crore in 2025, majorly driven by category II and III. The last two categories of AIFs covered private equity, private credit, hedge funds and structured products.
Category II alone expanded to Rs 11,20,589 crore, while Category III rose to Rs 2,92,398 crore, the report added.
Meanwhile, PMS assets under management jumped from Rs 1.27 crore in 2015 to Rs 8.37 crore by September 2025, reflecting a growth of 20.75 CAGR.
The market is set to increase in leaps and bounds hereafter, thanks to rising affluent investors. The number of Indians with over $1 million in net worth is expected to rise to 19.4 lakh by 2030, the report added. It would lead to strong demand for customised strategies, diversification, and higher alpha.
Meanwhile, GIFT City IFSC has emerged as a major hub for cross-border capital. AIF commitments raised at GIFT jumped from $5.5 billion in 2023 to $26.3 billion by 2025. Category III funds, supported by feeder structures, showed exceptional acceleration, hitting $10.15 billion by mid-2025. Inbound investments through GIFT rose more than five times during the same period.
The report highlights that India’s alternative investment ecosystem is now moving from “choice to necessity”, as investors seek resilience and long-term wealth creation. With rising wealth, strong regulation and global integration, the next decade is expected to be dominated by alternatives.
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
November 23, 2025, 17:14 IST
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