Alternative managers gaining ground: 70% of PMS capital now with non-institutional players, says Manish Bhandari
Kshitij Anand: I wanted to understand from you—the geopolitical environment is changing, and it's changing faster than we could have imagined. New tariff rules are coming in, and China is playing its own game. How do you think everything is shaping up at this point in time—good for India, bad for India?
Live Events
Kshitij Anand: And although there will be people at home who may not welcome or appreciate this India–China development—let's not get into that, as it's more political than financial—economically, we stand to benefit from the partnership?
Kshitij Anand: Now, let's talk about sectors. How do you view the sectoral landscape for the next few years? What could be the alpha generators of the future?
Kshitij Anand: We've seen new-age businesses gaining traction over the past few years. IPOs have slowed, but the SME space is booming—over 600 IPOs have been listed. Any new thematic businesses catching your eye?
Kshitij Anand: On PMS—the industry has evolved rapidly, especially post-COVID, with significant inflows. We're also seeing new strategies launched frequently. Is this good or bad for the industry?
(You can now subscribe to our
(You can now subscribe to our ETMarkets WhatsApp channel
In an exclusive conversation with ETMarkets PMS Talk on the sidelines of the APMI conference in Mumbai, Manish Bhandari , CEO & Portfolio Manager at Vallum Capital, highlighted a transformative shift in India's portfolio management services (PMS) landscape.According to Bhandari, who is also a Board Member of the Association of Portfolio Managers in India (APMI), nearly 70% of institutional capital in the PMS space is now managed by players without traditional institutional backing—a sign that investors increasingly trust independent and boutique managers over large fund houses.He attributes this trend to the sector's growing openness, diversity of strategies, and the 'democratization' of money management, where talent and performance are beginning to outweigh brand name and legacy.Yes, absolutely—and that's the beauty of the geopolitical landscape—it changes so fast. When Trump came in, everyone thought we would have an edge because of our long-standing relationship, but that has not materialised in terms of outcomes, and a different scenario is now emerging.What's interesting and brewing today, in my view, is a new, very solid economic partnership that's taking shape. There has always been a relationship between India and Russia, but now, with China, everything seems quite positive, and we are making inroads to create a favourable sentiment.When such a large economic bloc comes together, strong markets open up for each other, and cooperation increases. While there is a structural headwind until the tariff issue between India and the USA is resolved, there is also a structural long-term dividend if this partnership materialises.Just this morning, we heard that the National Security Advisor flew to Russia—such visits are now frequent and widely publicised. Perhaps the frustration in America is partly due to this new economic bloc being built. I deliberately use the word 'economic bloc' because my focus is on economic progress and structural changes—not cultural aspects—which are secondary. My sense is that Russia has played a key role in bringing India and China closer.The human brain holds on to baggage for a long time, but as the narrative changes, that baggage will also change. I believe this shift is happening before our eyes, and it's in both governments' interests to make it work. I see progress daily. As it surfaces on the front pages of newspapers, public perception will also shift.Tariffs can change overnight—10%, 20%, 25%—so making a definitive prognosis would require being smarter than the US President's tweets, which I'm not, and I'm sure none of us are. To make a compelling investment bet, you need two things: a rising sector and reasonable valuations. A great story with stretched valuations doesn't work. Infrastructure spending seems to have picked up again after a difficult election year. Cement looks promising. Healthcare also remains evergreen. The US still has significant dependence on Indian healthcare, so despite any market pushback, Indian companies have strong growth potential.Not all of those 600 IPOs are new-age businesses. For me, 'new age' means traditional businesses enhanced by technology to grow faster and disrupt incumbents. These are scattered across small and midcaps, and need to be picked selectively. Auto ancillary is another 'old school' sector with new opportunities coming India's way. Currently, opportunities are dispersed across sectors—there's no single dominant theme like we saw in previous cycles.The expansion of the market is always good for the industry—there is no second thought about it. There are a lot of strategies emerging because it is quite a democratic system where anyone who aspires to manage external or third-party money can get in today. Otherwise, for decades, the only platform left was to get a job in a mutual fund, and launching your own mutual fund was next to impossible.So, it is quite a democratic expression of investing—different strategies, different ways of looking at the market—everything keeps competition at a reasonably high level, and everyone can learn from each other. I think it is exciting.Most of the growth has also come from EPFO capital and less from retail capital. But one thing I can tell you, which is very interesting, is that if you look at the PMS industry and landscape, and the advisory capital that has been built, 70% of the institutional capital is given to people who have a non-institutional background. They are not backed by large mutual fund-type institutions.This sets the context that people are giving money to individuals to manage—they are not just looking for institutions. So, individuals can make a remarkable difference.I see this trend coming up significantly, where institutional capital will look for PMS managers or alternative managers—something that has happened in other parts of the world as well.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
11 hours ago
- Economic Times
UnitedHealth jumps 9% after vote of confidence from Warren Buffett
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Shares of UnitedHealth Group surged more than 9% on Friday after a fresh investment from billionaire Warren Buffett's Berkshire Hathaway boosted investor confidence in the troubled health company is dealing with multiple challenges that have emerged in the last two years, including rising costs, a federal investigation into its government-backed health plans, a cyberattack at its technology unit that affected the personal information of over 192 million Americans, and the murder of its insurance unit chief in hailed as a reliable earnings performer, UnitedHealth missed Wall Street's profit expectations for the last two quarters, and its shares have dropped nearly 46% in 2025, making it the worst-performing stock on the blue-chip Dow Jones Industrial Average this shares were last up 9.3% at $296.64 in early has swooped in with big investments in companies, in which he sees a long-term strategic value, during their periods of invested heavily in Occidental Petroleum in 2019 as it tried to finance a merger with Anadarko Petroleum and has kept adding to his stake despite the company's weak stock performance. He famously took a stake in investment bank Goldman Sachs at the height of the global financial crisis in 2008."Buffett's purchase is a psychological reassurance to many investors that saw UnitedHealth as 'untouchable,' given the massive turbulence in the stock over the past few months," said Kevin Gade, chief operating officer at UnitedHealth investor Bahl & owned 5.04 million UnitedHealth shares worth about $1.57 billion as of June 30, it said in a U.S. Securities and Exchange Commission filing on Thursday. Buffett owned about 1.18 million shares in UnitedHealth between 2006 and 2009, before selling his entire stake in other prominent hedge funds, including David Tepper's Appaloosa Management, Lone Pine Capital and Two Sigma Investments, also bought UnitedHealth's shares, regulatory filings showed on the "vote of confidence" from Buffett's investment validates the long-term value of UnitedHealth shares, the "management needs to regain trust and credibility with investors, and get back to its beat and raise reputation of the past," said James Harlow, senior vice president at Novare Capital May, CEO Andrew Witty abruptly stepped down amid rising operational and financial pressures, and Stephen Hemsley, who had run the company from 2006 to 2017, took month, the company projected full-year adjusted earnings per share of at least $16, well short of analysts' already lowered estimate of $ shares are currently trading at about 15.8 times forward earnings estimates, below their five-year average of 19."While UnitedHealth still faces elevated uncertainty, it is good to see that this renowned investment firm also believes the market is discounting assumptions that are too pessimistic for the long term, which is similar to our view," said Morningstar analyst Julie of rivals Centene, Humana and Molina Healthcare gained between 2% and 4%.Berkshire on Thursday also disclosed new stakes in steel maker Nucor, security products provider Allegion and outdoor advertiser Lamar Advertising.
Economic Times
11 hours ago
- Economic Times
Dow hits record high at open on rate-cut optimism, UnitedHealth boost
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
Economic Times
16 hours ago
- Economic Times
US tariff hit may cost India $35 billion. Here's a 10-point plan to turn the tables
1. A massive geographical diversification of our exports Live Events 2. Transport infrastructure overhaul to slash logistics costs and propel manufacturing growth 3. Boost forex with world-class tourism infrastructure 4. Capital crescendo by foreign portfolio investors driving forex upsurge 5. Harvesting reform to cultivate global competitiveness in agriculture 6. Land and labour reforms to forge India's manufacturing future 7. Simplifying taxation to boost business ease and global competitiveness 8. Divesting high-quality, premium state assets to attract global capital 9. Leveraging remittances to offset export-driven forex losses 10. Fuel forex growth through strategic global capacity centres and BPO hub expansion (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel "India has never been in distress because its fundamentals are sound,' declared a global credit rating agency while upgrading India's sovereign credit rating to BBB. This places India among the higher-rated emerging economies- a very welcome development at a time when the United States has taken the unprecedented step of sharply increasing tariffs on Indian goods, making them among the highest in recent higher tariffs are expected to affect core export sectors such as textiles, gems and jewellery, marine products, auto components, and agriculture. A final tariff rate of around fifty percent could hit roughly fifty-five percent of our USD 87.3 billion merchandise exports to the US, which generated a USD 45.8 billion trade surplus last year. For labour-intensive industries-especially gems and jewellery, with nearly thirty per cent of exports destined for the US effect could be severe. Several studies suggest that steep export levies could wipe out between USD 30 billion and USD 35 billion in overseas sales, potentially shaving nearly a full percentage point off GDP growth. Growth forecasts for FY26 have already been revised downward by around thirty basis points by various agencies, and the possibility of an additional 0.2 to 0.5 percent drag on the economy raises serious sentiment is already under pressure. Foreign portfolio investors have withdrawn USD 2billion from Indian equities in August so far, following outflows of USD 2 billion in July. Foreign direct investment is also showing a declining trend, with some recent recovery. Without decisive policy action, this could set off a vicious cycle of weaker exports, slower growth, and volatile capital turn this challenge into an opportunity, the government can consider the following ten objective of reducing dependence on any single export market- particularly the US-should place strategic diversification at the forefront of trade policy. This involves not only negotiating better trade terms with emerging economies but also rolling out targeted support to Indian exporters. Africa and West Asia deserve top billing in this outreach, given their growing demand for key Indian products and services. India can build win–win partnerships by focusing on multiple sectors such as agriculture and agro-products, where advanced seed technologies can enhance food security; pharmaceuticals, where affordable medicines and scalable healthcare solutions can reach underserved markets; the automobile sector, where competitively priced models can meet the rising needs for both personal and commercial transport; and renewable energy, where India's proven solar PV systems and energy efficiency solutions can find ready markets. Such targeted engagement will open new growth corridors and insulate India from concentrated external data shows that every one rupee spent on infrastructure yields between ₹2.5 and ₹3.5 in GDP, underscoring the sector's immense impact on productivity, capacity expansion, and job creation. Reducing production costs is essential to making Indian goods more competitive. Additionally, Indian's logistics cost has recently been estimated at 8 to 9% of GDP, with room to converge toward best-in-class address this gap, India must accelerate investments in infrastructure, integrate digital solutions, and reform regulations. This means fast-tracking the development of multi-modal logistics parks, modernising ports and inland waterways, and implementing standardised digital platforms for freight booking and tracking. Together, these steps will not only improve the manufacturing sector's contribution to GDP but also expand India's footprint in global tourism and hospitality sectors offer an important buffer against external headwinds. To position India as a top-tier tourism destination, it is essential to fast-track world-class infrastructure, including upgrading airports, road networks, and hospitality facilities in high-potential tourism circuits. This should be complemented by simplifying visa processes through expanded e-visa eligibility and expedited approvals, launching focused global marketing campaigns, creating curated cultural and adventure itineraries, and forming public–private partnerships to develop integrated resorts and heritage trails. These measures will elevate visitor experiences, encourage longer stays, and drive sustained growth in tourism-driven foreign currency enhance foreign exchange inflows from portfolio investors, India must ensure regulatory clarity and policy consistency while streamlining digital onboarding for overseas investors. Introducing a settlement cycle that deepens market liquidity, harmonising tax treatment across asset classes, increasing investment limits, and offering innovative instruments can further strengthen participation. These measures, combined with stronger corporate governance, improved minority investor protections, and macroeconomic stability, will bolster confidence, deepen capital markets, and attract sustained portfolio agricultural laws is pivotal for enhancing global competitiveness and improving the ease of doing business in the sector. With agriculture contributing roughly fifteen percent of GDP and employing nearly half the workforce, enacting a central law to guarantee unfettered inter-state trade would eliminate arbitrary movement restrictions. Incentives for crop diversification into pulses, oilseeds, and other high-value commodities could boost farmer incomes and resilience. Modernising APMCs through public–private partnerships to provide on-site cleaning, grading, and cold-storage facilities will improve quality and reduce post-harvest losses, while developing agro-processing zones and building strong rural–market linkages will help integrate producers into both national and international value land laws to streamline acquisition, secure clear title transfers, and consolidate fragmented plots can significantly lower barriers to setting up factories. By creating dedicated land banks and fast-track dispute resolution mechanisms, India could shorten project gestation periods, reduce financing costs, and boost investor confidence. Greater land-use flexibility and transparent pricing would also improve India's ease-of-doing-business rankings, making the country more attractive to multinational corporations. Consolidating multiple labour laws into a single modern code with flexible hiring rules, clear registration, and expedited dispute resolution would cut compliance costs and help manufacturers adjust their workforce quickly. Aligning these regulations with global benchmarks will attract foreign investment and integrate India more firmly into global supply the mining sector should also be part of this strategy. Although mining currently contributes only 2–2.5 percent of GDP, it represents nearly eleven percent of industrial GDP and employs millions. Reforms such as easing exploration norms through the MMDR Amendment Bill 2025, introducing a State Mining Index for best practice sharing, and launching a policy for recovering critical minerals from mining tailings will be key. Additional measures could include an 'Explore in India' mission to speed up exploration-to-mining transitions, wider use of technology such as drones, AI, and GIS for surveying, and development of dedicated mining corridors to lower GST into fewer slabs and including sectors like petroleum under a unified framework can reduce compliance burdens, eliminate cascading tax effects, and enable smoother interstate commerce. The newly approved Income Tax Bill 2025, replacing the decades-old 1961 Act, is a landmark reform aimed at reducing the complexity of the tax code, lowering compliance hurdles for individuals and companies, and modernising direct tax procedures. Together, these reforms will enhance policy predictability, cut transaction costs, and make India a more attractive destination for or partially divesting stakes in marquee public-sector entities can deliver a double benefit by generating significant foreign exchange inflows from global investors and improving the efficiency of these FY2024–25, remittances from the Indian diaspora reached a record of approximately USD 136 billion. These inflows now account for more than ten percent of India's gross current account inflows and cover nearly forty-seven percent of the merchandise trade deficit. Even a steady increase in remittances can act as a cushion for India's forex reserves, offsetting outflows caused by trade deficits or tariff-related export losses, and stabilising the rupee against external Global Capability Centres and BPOs are powerful engines for foreign interest and forex inflow. As of 2025, India hosts nearly 1,700 GCCs, accounting for more than half of the global total, and the number is projected to reach 2,100-2,200 by 2030, generating between USD 99 billion and USD 105 billion in revenue and employing around 2.5-2.8 million professionals. These centres have evolved from cost-arbitrage units into hubs of innovation, AI, R&D, and global strategic operations, making India an attractive base for multinational corporations. State governments are supporting this expansion through targeted policies, including the promotion of Tier-2 cities. By tapping into new verticals such as portfolio management, financial analytics, and technology-driven services, this ecosystem not only attracts foreign capital but also positions India as a strategic innovation and decision-making rise, shine, and secure its future in an increasingly competitive global landscape, India must convert this adversity into an opportunity by implementing bold and pragmatic reforms, unlocking stalled initiatives, and strengthening domestic demand. By modernising policymaking, the country can turn these tariff challenges into a truly big, beautiful opportunity.
