129 PMSes Beat Nifty in October

Smallcap, multicap and largecap schemes appear among toppers

17 Nov 2021
129 PMSes Beat Nifty in October

The performance of India's multi-billion dollar PMS industry in October 2021 was more like September 2021. As many as 129 PMSes beat Nifty's 0.30 per cent in October, with good performance by some smallcap, multicap and largecap schemes. On the flipside, thematic strategies had a forgettable month. Also, there was a wide difference among same strategies in categories in October. Let us know more.

Best strategies of the month

Though PMS as a product is not recommended for short tenures, a look at monthly performers does show what is working and what isn't in the PMS landscape. While September saw dominance of midcap strategies, October represents a more balanced picture with top performers coming from multicap, largecap, smallcap, midcap etc. categories. In terms of returns, there was no compromise amongst toppers with 60% of top 10 delivering in excess of 5% in October.

The winner was Basant Maheshwari Wealth Advisers Equity Fund with 10.31% gains. The scheme falls in multicap category. 2nd best in the pecking order was Renaissance Opportunities with 8.05%, a strategy that represents the largecap category. 3rd was Agreya Capital Exposure Equity Index Strategy with 5.62 per cent, again from largecap basket.

The next in the top-10 club were Fort Capital Value Fund 5.59% (smallcap), Invesco Caterpillar 5.57% (midcap), Agreya Index Multiplier 5.15%(Multicap), Valentis Rising Star Opportunity 3.97% (small & midcap), Sundaram Alternates PACE 3.80% (multicap) and Invesco DAWN 3.69% (multicap).

You can notice how two Sundaram and Invesco schemes figure prominently in top-10 club. This would be on account of AMCs these days having high-conviction bets common across their strategies. As a result, when a high-conviction stock does well, it lifts all the schemes that have it.  Invesco Caterpillar was the numero uno in September, and has maintained its scorching pace in October as well.


Best categories

Largecap - The 24-scheme strong largecap category in PMS generated 0.66% gain in October, easily beating the Nifty's 0.30% gain. The 3 best in the lot were Renaissance Opportunities, Agreya Capital Exposure Equity Index Strategy and Nippon India Absolute Freedom (3.5%).

Large & midcap - In this niche category of 6 strategies, the average return in October was 0.34%. This was largely due to wide variance between the best large & midcap PMS i.e. LIC MF Value Equity+ (3.45%) and the category laggard (-4.85%).

Midcap - While midcap PMS category have close to 28 schemes, 22 have so far reported October data. The average gain of this segment in October stands at 0.30% compared, in-line with Nifty Midcap 100's 0.30% return. Again, there was wide variance between top and bottom performer. Invesco Caterpillar, Renaissance Midcap (3.43%) and Nafa Asset Emerging Bluchip (3.13%) topped the charts. The worst 3 laggards reported losses of 3-8% this month.

Small & midcap - The 19-scheme strong small & midcap PMS strategy category reported an average loss of 0.31% in October, due to 12 funds individually posting negative return. Still, the best performers in October were Valentis Rising Star Opportunity (3.97%), Kotak Small & Mid Cap (3.12%) and Geojit Advantage Portfolio (2.06%). The worst laggards clocked returns in the range of 2-3%.

Smallcap - Smallcap PMS category clocked positive average gain of 0.47% in October, comprehensively beating BSE Smallcap index's -0.4% return. Among the 16 strategies that reported data, the 3 best were Fort Capital Value Fund (5.59%), Sundaram Alternates Rising Stars (4.50%) and Marcellus Little Champs (2.58%). Two laggards in the smallcap category posted 3-5% losses, which imapcted overall category average.

Multicap - The multicap PMS category is the biggest space with over 150 products. Multicap PMSes on an average generated 0.21%, but that number hides the real performers as well as the real laggards. On average return basis, the category outshined BSE 500's 0.22% gain in October. The top 3 performers are Basant Maheshwari Wealth Equity Fund (10.31%), Agreya Capital Index Multiplier (5.15%) and Sundaram Alternates PACE (3.80%). On the other end of the spectrum, the 3 worst lagggards posted between 3-4.5% losses.

Thematic & sector - In the thematic & sector category, there are 12 schemes. Trivantage Capital Resurgent Financials Equity (3.42%) and Kotak Fintech (1.93%) performed well among sector strategies. In the thematic space, Anand rathi MNC PMS (1.00%) and ASK Financial Opportunities Portfolio (0.82%) performed reasonably well. Do note pharma sector or thematic funds had a forgettable month in October 2021.

Recent Blogs

Deep dive into top holdings of PMSes

Read on to know Who Owns What, Which Sector Is Hot/Cold, Cash & Portfolio Changes

PMSes clock upto 16% gain in jubilant July; 1 year gains of top performers cross 50%

75 out of 180 strategies beat Nifty that clocked 12.3% gain in the last 3 months. Read on to know how different PMS categories have performed in various period...

PMSes deliver up to 26% in April, but find out how many beat benchmarks

After a terrible market in March, April saw PMSes rise from their ashes like a phoenix. The harder a portfolio was in March, the rebound was stronger. Portfolio managers delivered up to 26.1% return in April 2020. Find out how many beat the benchmark ....

Every 2nd PMS strategy beats Nifty's 6.6 per cent jump in February

Small-Cap, Mid-Cap Strategies outshine Large-Caps and broader markets

Tracking top stock holdings changes in India's multi-billion dollar PMS industry

133 PMS Strategies reported 205 unique stocks in their disclosed portfolios, with single-stock weight as high as 29.75% in a strategy. In this monthly insight piece, we take a detailed look at the most-owned stocks, unique picks, sectoral preferences and stock allocation weights for June 2020.

Outperform by Having the Right Company Doing the Right Things

About 10 years ago a tea manufacturing company using child labour was documented on a TV channel. Within a short span of time, their entire business collapsed as buyers, distributors etc. refused to work with a company that exploits children. That was 10 years ago. Today, ESG stands for ESG - Environmental, Social, and Governance -- investing is being actively used by investors to apply non-financial factors as part of their analysis process to identify material risks and growth opportunities. In a special PMS Bazaar one-hour session, Andrew Holland (CEO Avendus Capital Public Markets Alternate Strategies LLP) and Abhay Laijawala (MD Avendus Capital Public Markets Alternate Strategies LLP) talked about ESG investing trends and showcased their offering: Avendus Capital Large Cap ESG. Read on...

AIF LONG-SHORT FUND Can AIF Long Short Funds Smooth Out the Short term conundrums of Equity Portfolios?

Most important value add of long-short portfolios is a superior client experience because of consistency of returns. Long-short portfolios fall between traditional debt and traditional equity in the risk-return spectrum. A common misconception is that leverage is used to amplify risk, whereas in practice long-short funds use leverage to dampen risk by taking short positions. Gain more knowledge from the exclusive article by Mr. Nalin Moniz, CFA, Chief Investment Officer, Alternative Equity and Business Head, Alternative Equity, Edelweiss Asset Management.

Portfolio Managers get time till October 1 to comply with new SEBI norms

In a welcome move, Portfolio Managers have been given a 3-month additional extension to comply with new norms relating to fees and charges, direct client on-boarding, nomenclature of ‘investment approach’, performance reporting, documents disclosure etc.