From Generation to Generation: PMS as the Cornerstone of India’s ₹100 Lakh Crore Wealth Transfer

India’s Wealth Transfer Imperative

India is on the verge of one of the greatest intergenerational wealth transfers in history. A 2023 Karvy Private Wealth study estimates that by 2030, more than ₹100 lakh crore ($1.2 trillion) in personal wealth would move from elderly to younger generations. However, nearly 65% of Indian families lack a structured succession plan, risking asset fragmentation, tax inefficiencies, and family disputes. Portfolio Management Services (PMS) have emerged as a critical tool, combining strategic investment with legacy planning to safeguard multigenerational wealth.

PMS relieves capital gains tax, stamp duty, and legal disputes by offering tax-optimized, professionally managed portfolios tailored for seamless intergenerational transfers.

Invest in PMS: A ₹30 Lakh Crore Industry Driving Smarter Wealth Transfers

India’s PMS sector, managing over ₹30 lakh crore in assets (SEBI, 2024), is redefining wealth transfers through:

1. Customization: 78% of investors who invest in PMS cite personalized portfolios as their primary motive (Anand Rathi Wealth Report, 2023).
2. Tax Efficiency: Equity-oriented PMS investments held beyond 12 months incur only 10% long-term capital gains tax, versus 15% for mutual funds.
3. Active Management: PMS funds outperformed Nifty 50 by 6% annually over the past decade (CRISIL, 2023), ensuring compounded growth for heirs.

Why Wealth Transfers Demand Proactive PMS Strategies

1. Liquidity Management: 60% of inherited wealth in India is locked in illiquid assets (Goldman Sachs, 2023). PMS ensures liquidity through dividend-yielding equities and debt instruments.
2. Generational Alignment: Millennial heirs prefer ESG-compliant investments, which comprise 35% of modern PMS mandates (Morningstar India, 2024).
3. Legacy Continuity: PMS providers like Axis PMS and Motilal Oswal offer “Family Investment Offices” to align portfolios with family constitutions, minimizing governance gaps.

The Road Ahead: Scaling PMS for India’s Wealth Transfer Boom

With 70% of India’s UHNIs under 50 (Kotak Wealth Report, 2023), demand for agile wealth transfers tools will surge. The PMS industry is projected to grow at 18% CAGR, reaching ₹55 lakh crore by 2027. Forward-looking strategies include:

• Digital Inheritance Platforms: Apps enabling real-time portfolio tracking for heirs.
• Charitable Trust Integration: 25% of PMS users now allocate 10–15% of assets to philanthropy-linked instruments.

Conclusion: Reinventing Legacy Building with PMS

To invest in PMS wealth transfers is to embrace a future where legacies are defined by resilience, adaptability, and purpose. By leveraging data-driven strategies, tax efficiency, and generational alignment, PMS empowers families to turn wealth into a lasting narrative of growth and impact.

**’The opinions expressed in the article are solely the author’s and don’t reflect the opinions or beliefs of the portal’**