Assets with portfolio managers nears Rs 8 lakh crore

Wealthy investors are reposing greater faith in their portfolio managers for investments or advisory services, as the assets under management of such entities have reached nearly Rs 8 lakh crore in the Indian capital markets.

The increase comes after witnessing a decline in assets managed by portfolio managers in April.

According to the Securities and Exchange Board of India (Sebi), Assets Under Management (AUM) of portfolio managers increased to Rs 7.91 lakh crore at the end of June, from Rs 7.70 lakh crore in the previous month.

In April, AUM of portfolio managers, who mostly manage investments or provide advisory services to High Networth Individuals (HNIs), stood at Rs 7.79 lakh crore in April.

The total AUM has nearly doubled since the data was first released by the market regulator Sebi in December 2010.

During June, portfolio managers individually handled assets worth Rs 6.11 lakh crore for discretionary services, besides Rs 1.34 lakh crore for advisory services and another Rs 45,320 crore for non-discretionary investments.

Of the total assets managed by portfolio mangers, about Rs 5.60 lakh crore was contributed by funds from employee provident fund organisation (EPFO) or provident fund (PF), Sebi data showed.

Besides, the number of clients rose from 55,129 in May to 55,539 last month. However, the number of clients have significantly declined from the levels seen in December 2010.

Portfolio managers 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 5.92 lakh crore, and listed and unlisted equities nearly worth Rs 38,000 crore at the end of June.