77% PMSes beat Nifty in September; top strategies clock 6-14% gain

Midcap and smallcap categories among best performers across equity segment; the six-month performance shows smallcaps capturing the biggest upside as markets rebounded from March lows

After three straight months of gain, stock markets fell a bit in September. But, a majority of PMS investors beat the Nifty and as such were shielded in a big way. According to PMS Bazaar data, 77% of PMSes out-performed the loss registered by Nifty in September, with top strategies in fact clocking a handsome 6-14% gain. With largecap showing signs of tiredness, the focus has well and truly shifted to midcaps and smallcaps and naturally PMSes running those strategies topped the overall category chart. Read on to know more.

Largecap

While August had indicated a moderation in momentum, September saw largecaps, to a big extent, moving downwards. With benchmark indices comprising largecaps, the Nifty in September fell 1.2% compared to positive gains in midcap and smallcap indices.

Largecap PMSes, as a category, reported -0.75% return in September. Among the 19 largecap PMSes, the three best performers were AccuraCap Alpha10 (up 2.35%), Ambit Inv. Advisors Coffee Can (up 1.90%) and Varanium Capital Advisors (up 1.2%). As many as 12 of 19 largecap PMSes beat Nifty.

The smaller club of 3 Large & Midcap PMSes reported a category gain of 1.83%, with Bonanza Growth showing 5.28% rise in September.

Midcap

The tracked 14 Midcap PMSes as a category reported the second-highest average gain of 2.39%, which is bigger than the Nifty Midcap 100 index’s 1.80% gain. The 3 best midcap PMSes this month are Centrum Multibagger Deep Value I (up 6.1%), Centrum Deep Value IV (up 5.7%) and Ambit Inv. Advisors Good & Clean India Fund (up 5.7%). As many as 9 of 14 midcap PMSes beat the Nifty Midcap 100.

The niche Small & Midcap PMS category clocked the highest average gain of 3.15%. These strategies were in the sweet spot because they enjoyed the best of both smallcap and midcap worlds. The three best performers in September were Tamohara Investment Managers TLES (up 8.04%), Equirus Securities Long Horizon Fund (up 6.46%) and Silverarch Mid & Small Cap Equity (4.4%).

Multicap

The biggest category in the PMS landscape is undoubtedly the multicap segment. There are 98 schemes tracked by PMS Bazaar for September 2020. The category average for this month is 1.02%, which out-performed the BSE 500 index’s 0.30% decline. The three best multicap performers in September were Moneylife MAS Growth (up 14%), Girik Capital Multicap Growth Equity (up 6.69%) and First Global India Super 50 (up 6.1%). As many as 71 of 98 multicap PMSes beat BSE 500.

Smallcap

Smallcap PMSes shined in September, with their category average at 1.33% but that failed to beat the BSE Smallcap index’s 3.7% rise. The three best performers were AccuraCap Picopower (up 7.71%), Nine Rivers Capital Aurum Small Cap Opp. (up 6.8%) and Sundaram Alternates Rising Stars (up 3.9%), all of which generated alpha. As many as 9 of 12 smallcap PMSes failed to beat BSE Smallcap.

Do note that the 6-month performance chart of PMSes is dominated by smallcap, midcap strategies. Nine Rivers Capital Aurum scheme happens to be the best with a whopping 94.9% gain in the last 6-month period, followed by Equirus’ Long Horizon Fund (up 94.44%).

In other PMS categories, Green Portfolio MNC Advantage (up 3.05%), Green Portfolio Dividend Yield (up 1.52%) showed promise in September. In non-equity PMSes, Karvy Capital Excel and Scient Capital Aries Mid Yield strategies are the best, clocking about 0.8% gain in September.