New Delhi, May 29 -- Two of India's asset classes targeting the rich are growing at sharply different rates, with one growing thrice as fast as the other.

Alternative investment funds (AIFs) far outpaced portfolio management services (PMS) in FY25, data on fund commitments and assets showed, thanks to a more efficient tax structure, operational ease, and the flexibility to invest in unlisted stocks.

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Commitments raised by Category III AIFs grew 58% from a year earlier to Rs.2.3 trillion at the end of March, as per data by the Securities and Exchange Board of India (Sebi). In the same period, assets under management (AUM) of the PMS industr...