Assets under management (AUM) of portfolio managers held for investments on behalf of investors (high networth individuals or HNIs)have plunged by 30 per cent to Rs 6.7 lakh crore in September this year from the previous month's levels, according to Sebi data.
Assets under management (AUM) of portfolio managers declined to Rs 6,68,592 crore at the end of September, according to data available with markets regullator Sebi. It had touched a record level of Rs 9,58,121 crore in the previous month.
This is the first decline in 16 months in AUM of portfolio managers who mostly manage investments or provide advisory services to high networth individuals (HNIs).
However, the total AUM has nearly doubled compared to the level in 2010 when the data was compiled for the first time.
In September, portfolio managers individually handled assets worth Rs 5.32 lakh crore for discretionary services, Rs 1.05 lakh crore for advisory services and another Rs 31,850 crore for non-discretionary investments.
Of the total assets managed by portfolio mangers, about Rs 4.96 lakh crore was contributed by funds from employee provident fund organisation (EPFO), according to Sebi data.
The number of clients for portfolio managers has fallen to 62,131 in September from 64,369 in the preceding month.
The number of clients has 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 5.2 lakh crore, and listed and unlisted equities worth Rs 21,296 crore at the end of September.
In addition, portfolio managers managed AUM worth about Rs 9,828 crore of mutual funds during the period.