EPFO allocations prop up Oct PMS growth; HNIs missing in action

• October PMS growth was primarily driven by mandatory EPFO allocations, not fresh High Net Worth Individual (HNI) investments.
• Net PMS inflows surged 18-fold to Rs 22,011 crore in October, but this recovery was institutionally driven and not a sign of broad sentiment revival.
• SBI Funds Management and UTI AMC, major EPFO-linked PMS managers, accounted for over Rs 23,000 crore in EPFO schemes, covering the industry-wide uptick.
• HNI sentiment remains weak due to macro worries, with new client additions slowing sharply from 3,490 in September to 1,257 in October.
• Experts advise against misinterpreting month-on-month AUM swings, suggesting PMS should be analyzed quarterly due to large institutional mandates distorting figures.

Why It Matters: PMS growth is misleading; institutional funds, not HNIs, drive the numbers.