Asset with portfolio managers grows to Rs 11.5 lakh cr by Sept-end

Wealthy investors continued to have faith in portfolio managers or advisory services as the assets under management of such entities surged to over Rs 11.5 lakh crore in the Indian capital market at September-end.

It also marks the ninth-consecutive monthly increase in the asset base of portfolio managers.

Asset base of portfolio managers, who mostly manage investments or provide advisory services to high net worth individuals (HNIs), stood at Rs 9.85 lakh crore in September 2015.

According to the Securities and Exchange Board of India (Sebi), asset under management (AUM) of portfolio managers was at Rs 11.50 lakh crore at the end of September as against Rs 11.37 lakh crore in the preceding month.

The asset base has been on the rise since January, when it was Rs 10.23 lakh crore. It had stood at Rs 10.4 lakh crore in December.

Portfolio managers individually handled assets worth Rs 8,87,103 crore for discretionary services, besides Rs 1,94,081 crore for advisory services and another Rs 69,159 crore for non-discretionary investments during the period under review.

Of the total assets managed by such mangers, about Rs 7.95 lakh crore was contributed by employee provident fund organisation (EPFO) or provident fund (PF), Sebi data showed.

Besides, the number of clients rose to 64,138 in September from 53,871 in the year-ago period.

A portfolio manager is a corporate body, which pursuant to a contract or arrangement with a client, advises or directs or undertakes on behalf of the client (whether as a discretionary portfolio manager or otherwise), management of a portfolio of securities or the funds of the client.