Wealthy investors continued to have faith in portfolio managers or advisory services as the assets under management of such entities rose to over Rs 11.75 lakh crore in the Indian capital market at December-end. It also marks the 12th-consecutive monthly rise in the asset base of portfolio managers. Asset base of portfolio managers, who mostly manage investments or provide advisory services to high networth individuals, stood at Rs 10.41 lakh crore in December 2015. According to Sebi, total assets under management of portfolio managers were at Rs 11,75,467 crore at the end of December as against Rs 11,73,915 crore in the preceding month. The asset base has been on the rise since January, when it was Rs 10.23 lakh crore.
It had stood at Rs 10.4 lakh crore in December. Portfolio managers handled assets worth Rs 9,20,092 crore for discretionary services, besides Rs 1,85,133 crore for advisory services and another Rs 70,242 crore for non-discretionary investments during the period under review. Of total assets managed by such managers, about Rs 8.2 lakh crore was contributed by employee provident fund organisation or provident fund, Sebi data showed. Besides, the number of clients rose to 72,477 in December from 59,746 in the year-ago month. A portfolio manager is a corporate body, which pursuant to a contract or arrangement with a client, advises or directs or undertakes on behalf of the client, management of a portfolio of securities or the funds of the client.