140 PMSes beat Nifty's 2.84% gain in September

More than half of the PMS schemes, led by midcap strategies, out-perform the benchmark

13 Oct 2021
140 PMSes beat Nifty's 2.84% gain in September

Nifty shone bright in the month of September, with the large-cap benchmark going up by 2.84 per cent. The domestic markets continued to hit new highs. In this bullish time, Portfolio Management Services (PMSes) delivered robust returns. As many as 140 PMSes beat the Nifty's gain in September, establishing for yet another month the ability of PMS to generate alpha. Midcap PMSes led the charge, followed by some thematic, multicap and small & midcap strategies. As the economy opens up, smaller firms are expected to do well and this has pushed investors towards such stocks.

Best strategies of the month

September saw some great shows by PMSes, with some of the best performing strategies giving more than triple the benchmark returns. The performance of the top-10 schemes saw 5 strategies delivering more than 9 per cent.

The top 5 schemes were led by Invesco Caterpillar, a midcap PMS, generated the best return of 9.97 per cent. It was followed by Green Portfolio Dividend Yield 9.93 per cent, Bellwether Long Term Growth 9.27 per cent, Arihant Electrum Midsmallap 9.03 per cent and Karma Capital Advisors Long Only India Public Equity 9.00 per cent.

The next 5 schemes (6th to 10th rank) are Master Portfolio Services Vallum India Discovery 8.55 per cent, Right Horizons Super Value 8.51 per cent, Envision Capital Services India Value Portfolio 7.90 per cent, Nafa Asset Managers Emerging Bluechip 7.46 per cent and Green Portfolio Super 30 Dynamic 7.37 per cent.

As you can see all the top-10 schemes gave between 2 to 3 times of the benchmark gain in September 2021.

Best categories

Large & Midcap - There are 6 schemes in this category. The best performing strategy in this category was Bonanza Growth (up) 7.30 per cent and LIC MF Value Equity+ (up 3.58 per cent). The average gain of this category was 2.53 per cent.

Largecap - There are 23 schemes in the largecap segment, with average gain of 2.44 per cent i.e. underperformance compared to Nifty 50. The 3 best largecap PMSes were Nippon India Absolute Freedom up 6.40 per cent, Renaissance Oppo. Portfolio up 6.18 per cent and Asit C mehta ACE 50 up 5.6 per cent

Midcap - There are 22 midcap PMSes in this basket, with average gain of 4.86 per cent i.e. under-performance compared to NSE Nifty Midcap 100 (up 6.9 per cent). The 3 best PMSes in midcap space are Invesco Caterpillar up 9.97 per cent, Master Portfolio Services Vallum India Discovery up 8.55 per cent and RightHorzons Super Value up 8.51 per cent.

Multiasset - There are 5 PMSes in this category. The top performers include First Global Indian Multi Asset 2.91 per cent and Morningstar Active Aggressive Plus 2.76 per cent.

Multicap - This is the biggest PMS category. There are as many as 146 PMSes in this space. Thanks to midcap stocks, multicap PMS category clocked 3.18 per cent gain i.e. underperformance compared to BSE 500 (up 3.29 per cent). The best performers include Bellwether Capital Long Term Growth 9.27 per cent, Karma Capital Advisors Long Only India Public Equity 9.00 per cent and Right Horizons Flexi Cap 7.25 per cent.

Small & Midcap - There are 18 PMS schemes in this space. The average gain in September 2021 was 4.28 per cent. The 3 best performers are Arihant Electrum Midsmallcap 9.03 per cent, Equirus Securities Long Horizon Fund 7.21 per cent and Geojit Advantage Portfolio 7.14 per cent.

Smallcap - There are 16 schemes in this category. The average return of Smallcap PMSes was 4.08 per cent, slightly underperforming the BSE Smallcap 4.30 per cent. The best 3 performers are Nafa Asset Managers Smallcap up 6.97 per cent, Equitree Emerging Opp. up 6.03 per cent and Ambit Emerging Giants up 5.55 per cent.

Thematic- There are 7 thematic PMSes. The best performers in this niche are Green Portfolio Divident Yield up 9.93 per cent, Green Portfolio Super 30 Dynamic up 7.37 per cent and Right Horizons Alphabets India Prime up 6.68 per cent.

Recent Blogs

Soonicorns, Unicorns and Listings: The Transformation of India's Public Equity Markets

The stories of Flipkart, Paytm, Nykaa and other start-ups that define India are well-known. In a small but significant way, these unicorns also represent the dreams and aspirations of a new breed of corporates since they have been built by first-generation entrepreneurs. They developed business models that would not only meet unmet needs of the masses, but also attracted huge bets from investing capital from around the world. As we have seen, many of these homegrown start-ups are going for public listings aka IPOs and thereby creating history again in the public equity market. To talk about this very interesting opportunity, PMS Bazaar recently hosted Avendus and its top leadership in a webinar titled 'The Coming Transformation of India's Public Equity Markets'. The speakers were Ranu Vohra, co-founder and executive vice chairman, Avendus Capital and Tridib Pathak, co-head of equity, Ocean Dial Asset Management India and fund manager, Avendus Olivo (PMS strategy). The insightful session was anchored by Sivaram.

Average returns of PMSes outperform Benchmarks in May-2020

The month of May saw benchmark indices drop by 2.8% after nearly 15% spurt in April; the best performing PMS strategy in May delivered 3.6% positive return. Read on to know how different categories did against each other and the benchmarks.

Investment Opportunities Beyond 250 Companies

Companies with a market capitalization of less than Rs. 500 Crore are categorized as small-cap companies. Over 95% of Indian companies are considered small-caps. This type of company holds a rank above 251 and tends to perform during the initial phase of economic recovery and the stocks issued by such companies are termed small-cap stocks.

Decoding the latest SEBI Portfolio Managers regulations

In an exclusive knowledge webinar with PMS Bazaar, CFA Society India's Sanjay Parikh and Piyush R Singh take portfolio managers through the latest norms in performance reporting and highlight new requirements in the Regulations

8 out of 10 PMSes Out-Performed Nifty in November

The Indian stock benchmark Nifty 50 fell 3.9% in November, but the declines in the broader market were gentler. Midcaps fell 2.7% while smallcaps were largely flat. Naturally, PMS strategies that usually spread their bets across the market performed better. As many as 219 PMSes out-performed the Nifty 50 in November, i.e. almost 83% of the PMS strategies tracked by PMS Bazaar. Due to the lop-sided nature of market performance this month, the best performing PMS strategies belonged to midcap, small & midcap, multicap, smallcap buckets. Here is a recap.

How To Profit From Significant Consolidation Across Financial Services Sector

India is at cross-roads. Massive disruptions in the financial sector await. The conventional business model of poorly run banks, including the public sector lenders and opaque private sector NBFCs, is ripe for a reset. Read on to Know more..

PMS Portfolio Deep Scan: What the study of 120+ portfolios reveals

PMSBazaar presents an industry-first analysis of the full portfolios of about 60% of India's multi-billion dollar PMS industry

PMSes, led by smallcap, hit it out of the park in August upto 25% gain; majority beat Nifty in 1-yr

Consistent performance helps portfolio managers out-perform markets across various time periods, underlining the utility of PMS in a wealth portfolio