Speaking at the annual conference of the Association of Portfolio Managers in India (APMI), SEBI Chairman Tuhin Kanta Pandey described India’s Portfolio Management Services (PMS) sector as being at a pivotal inflection point. He pointed to a combination of regulatory evolution, technological innovation, and growing investor sophistication as the forces driving this transformation.

Pandey highlighted that governance and trust will be the foundation of the sector’s next growth phase. He urged PMS providers to embrace standardised reporting, transparent fee structures, and strong compliance protocols. According to him, ensuring that investors clearly understand the products, risks, and performance metrics will be critical for sustaining long-term confidence.

Digital transformation emerged as a central theme. Pandey encouraged the industry to adopt robust e-onboarding processes, centralized data systems, and digital client dashboards to enhance efficiency and transparency. This, he said, would not only reduce operational friction but also appeal to the next generation of tech-savvy investors.

The APMI leadership echoed his vision, outlining an ambitious goal of increasing PMS assets under management to ₹25 lakh crore over the next five years. They emphasized that digital infrastructure and investor education will be key enablers of this growth.

Industry experts see technology as a double-edged sword—offering powerful tools for personalized portfolio strategies, but also demanding heightened cybersecurity measures and data privacy safeguards. Many PMS firms are already integrating artificial intelligence, predictive analytics, and real-time market monitoring into their offerings to differentiate themselves in an increasingly competitive market.

For B2B stakeholders such as banks, custodians, and fintech platforms, the evolving PMS landscape presents both opportunities and challenges. Strategic collaborations with PMS providers that demonstrate governance strength and tech agility could unlock new revenue streams while enhancing client trust.

As India’s investment ecosystem matures, the PMS sector is positioning itself as a high-value option for affluent and discerning investors. The next few years will determine whether it can achieve both scale and credibility, cementing its role as a cornerstone of the country’s wealth management industry.