According to latest update with the Securities and Exchange Board of India (Sebi), the assets under management of portfolio managers declined to Rs 7,70,173 crore at the end of May from Rs 7,78,711 crore in April.
However, total AUM has nearly doubled since the data was first released by Sebi in December 2010.
The AUM had touched a record level of Rs 9.58 lakh crore in August last year.
In May, portfolio managers individually handled assets worth Rs 6.01 lakh crore for discretionary services, Rs 1.27 lakh crore for advisory services and another Rs 42,106 crore for non-discretionary investments.
Of the total AUM, Rs 5.53 lakh crore is contributed by funds from the Employees' Provident Fund Organisation (EPFO) and Provident Funds.
The number of clients has declined to 55,129 in May from 56,330 in the preceding month.
Portfolio managers accept investments of up to Rs 25 lakh or stocks worth this level.
As per Sebi data, portfolio managers handled debt assets to the tune of Rs 5.87 lakh crore, and listed and unlisted equities worth Rs 34,437 crore at the end of May.
In addition, portfolio managers managed AUM worth about Rs 8,918 crore of mutual funds during the period.