Given the limited number of wealthy people and the high number of investment votes, it is difficult to expand the portfolio management services (PMS) business. In contrast, mutual fund business is easier to scale because the investment is much smaller and therefore available to the masses. This explains the portfolio manager’s rush to seek mutual fund licenses from the Securities and Exchange Commission of India (SEBI).
Founded by Sunil Singhania, former chief investment officer of Reliance Mutual Fund, Abakkus Asset Manager is India’s eighth largest portfolio management services (PMS) provider with valuable assets ₹According to the Association of Portfolio Management Services (APMI), Rs 180.1 crore under PMS.
Total Assets (AUM) it manages is ₹325.42 million, including PMS, Alternative Investment Funds (AIFs) and Private Equity Business. The company currently offers three PMS strategies, five AIFs and one private equity fund.
Retail drive
According to one who is aware of the discussion, the plan is in its infancy and Abakkus’s management has not yet made up its mind. A second person who asked not to be named said it was a reasonable advancement from portfolio management designed specifically for Network individuals to mutual funds with retail investors having a larger share of the pie. Neither of the two people here quoted them before.
The email sent to Abakkus has not been answered until the time of publication.
According to Mutual Fund India (AMFI) data, retail investors in stock, hybrid and solution-oriented programs accounted for 79% of the 235 million investor accounts in the mutual fund industry as of April 30. As of April 30, these investors accounted for 57% of the management’s average mutual fund assets.
Stock mutual funds plan invests a majority of their assets in their stocks (at least 65% in India). A hybrid plan invests in a combination of asset classes (mainly equity and debt), but can also include gold or other assets. Solution-oriented programs are designed to help investors achieve specific financial goals such as retirement, children’s education or marriage.
PMS companies follow trends
Abakkus Asset managers enter the mutual fund sector with growing trends between PMS and AIF participants, seeking to expand to the wider mutual fund industry. In recent years, India’s mutual fund industry has been investing quickly, and assets have grown from such funds. ₹November 2020 to 30 trillion ₹April 2025 69.5 trillion
Experts point out that mutual funds enjoy certain benefits over others.
“The mutual fund industry benefits from improved market sentiment, higher financial literacy, and growing retail participation through SIP,” said Raj Gaikar, equity research analyst at Samco Securities.
He added that digital adoption and diversification of passive and international funding will further boost growth in the mutual fund industry.
More players join
According to SEBI documents, Saurabh Mukherjea’s Marcellus investment manager also applied for a mutual fund license on January 30. Pramod Gubbi, co-founder of Marcellus investment manager, said the company has received principle approval.
“With six months, we must demonstrate that we have the staff, systems and processes needed in accordance with SEBI’s regulatory standards. SEBI will then decide on final approval based on our ready-to-be decisions.”
Marcellus plans to launch equity mutual funds that focus on businesses with competitive advantages, prudent capital allocation and transparent accounting practices.
At the same time, ask the investment manager, the ninth largest PM, AUM ₹179.43 million, also received principle approval from SEBI to create mutual funds. Its total AUM exceeds ₹250 million.
“Port managers are increasingly turning to mutual funds because there are so many people who can expand PMS based on the number of investors,” said Nimesh Mehta, chief business officer at Ask Investment Investment Manager.
He added that the PMS could be compared to high-end vehicles like Mercedes, which are limited due to high tickets. “In contrast, shared funds are like bicycles – the masses can access smaller towns. Like hundreds of thousands of bikes, mutual funds can achieve wider market penetration compared to several high-end cars. We have about Rs 2 million PMS PMS PMS, and India’s 230 million MF MF has been added in India’s Folios.”
Tax preferential appeal
In addition, Deepak Shenoy’s CapitalMind PMS also received SEBI’s principle approval on February 4. CaildrMind has three PMS strategies and an AIF fund. Other companies, including Alphagrep Securities Private Ltd and Monarch Network Capital, have also submitted applications for mutual fund licensing. Data from market regulators show that the applications are currently under review and have not been approved in principle.
Bhautik Ambani, CEO of investment manager at quantitative trading and investment firm Alphagrep, stressed that mutual funds are more convenient in terms of operations than PMS.
“With common funds, investors will only sign once and they are ready to start,” Ambani said.
In contrast, PMS requires extensive documentation and preparation procedures. He also noted that mutual funds are more tax-efficient. “In PMS, investors bear tax burdens every time the portfolio manager buys or sells the guarantee. However, in mutual funds, taxes are only arising from redemption,” Ambani said.
Others switch
There are others. Unifi Capital, originally a PMS player, received SEBI approval in November 2024 to launch a mutual fund. It launched its first program, the UNIFI Dynamic Asset Allocation Fund in March this year. Similarly, Prashant Khemka’s Whiteoak Capital Management began with PMS and then acquired Yes Mutual Fund in 2021. According to data from the Independent Investment Research Company Value Research Company, the company now manages 19 mutual fund programs.
As of March, all AUM stations in the PMS industry are ₹According to the Association of Portfolio Management Services, 5.1 trillion ₹$2.3 trillion, according to SEBI. In contrast, mutual fund industry management ₹According to AMFI data, 69.9 trillion.
