Debt assets power PMS growth amid equity dip, accounts for 80% of assets

Outlook for PMS debt schemes seems positive going forward, with likelihood of superior returns once rate hike cycle ends

Debt as an investment avenue for the wealthy has been attracting more assets than equity. The portfolio management service (PMS) industry, whose services require a minimum investment of Rs 50 lakh, has seen a 4.4 per cent decline in equity assets since March 2022.

Debt assets are up 11.7 per cent. The steady pace of debt addition has meant debt accounts of four of every five are managed by PMS providers. 

Equity assets were on a roller-coaster ride during the pandemic. They fell 16 per cent between March 2019 and March 2020 amid a global stock market rout in the