Large caps led this month’s PMS strategy gains (3.06%), while Smallcaps lagged at 0.88%; most categories delivered 1–2.5% returns

After a rebound in March, April-2025 proved to be another constructive month for Portfolio Management Services (PMS), with 341 out of 406 tracked equity strategies by PMS Bazaar ending in the green amid improved market sentiment. As benchmark indices like the Nifty 50 and BSE 500 rose 3.48% and 3.18% respectively, PMS strategies broadly mirrored this uptrend. Notably, 87 strategies outperformed the Nifty 50 TRI, while 109 beat the BSE 500 TRI. This translates to 21.4% and 26.8% of the total universe, respectively, delivering alpha over benchmarks. The month’s top performers clocked impressive returns in the 6–10% range, driven by sector rotation and large & midcap resilience.

Top-10 Performers in Focus

In April 2025, the top 10 PMS performers showcased robust alpha generation, with returns ranging from 5.85% to 9.86%. These strategies came from a diverse set of categories spanning Small & Midcap, Multi Cap & Flexi Cap, and Thematic approaches. 

Notably, all top performers significantly outpaced the BSE 500 TRI’s 3.18% return, reflecting skillful positioning amid market recovery.

Trivantage Capital’s Small and Midcap Financials strategy led the charts with a stellar 9.86% return, capitalizing on the strength in financials and midcaps.

Qode Advisors’ Tactical Fund followed closely, gaining 9.56%, likely supported by agile asset rotation. Importantly, Qode’s All Weather strategy also secured third spot with 8.72%, showing consistency across conditions.

2Point2 Capital’s Long Term Value Fund claimed fourth place with an 8.10% return, reflecting disciplined value-based stock picking. 

Alchemy Capital’s High Growth strategy secured fifth with 7.14%, benefiting from selective bets in high-growth sectors. Both stood out in the Multi Cap & Flexi Cap space for their strong alpha in April.

Below is a table of the top-10 performers for April 2025.

Category Focus

PMS categories delivered a mixed bag of returns in April 2025, broadly echoing the market’s recovery but with noticeable divergence across segments. Large Cap strategies led the performance chart with a 3.06% gain, in line with Nifty 50’s 3.48% rise and supported by strength in frontline sectors. Large and Mid Cap followed with 2.49%, benefitting from exposure to both ends of the market cap curve.

Sector and Thematic PMS strategies posted 2.46%, reflecting targeted gains from focussed allocations in financials, healthcare, and digital themes. Multi Cap and Flexicap strategies delivered 1.98%, suggesting cautious positioning despite index-level momentum.

Midcap (1.88%) and Small & Midcap (1.62%) categories underperformed relative to the Nifty Midcap 150’s 4% rally, indicating selective stock participation. Smallcap strategies trailed all, with a muted 0.88% average return despite a 1.7% rise in the Nifty Smallcap index.

Overall, category-wise performance highlighted the continued dominance of large caps and the importance of selective positioning in high-beta segments.

Below is a table depicting how different PMS equity categories performed in April 2025.

Large Cap: Large Cap PMS strategies stood out in April 2025, delivering an average return of 3.06% the highest among all segments. The performance closely tracked the broader indices, as the Nifty 50 rose 3.48% and the BSE 500 moved up 3.18%. The segment benefitted from improved market sentiment driven by easing global tariff tensions, strong FPI flows, and the RBI’s dovish policy stance. Large Cap strategies capitalized on strength in index-heavy sectors like banking and IT, while maintaining risk-adjusted positioning. Although alpha was limited compared to mid and flexi-cap strategies, Large Cap offerings offered consistency, liquidity, and lower drawdown amid residual volatility.

Of the 27 PMS strategies tracked under the Large Cap segment, the average return for April stood at 3.06%. While this was slightly below the BSE 500 TRI (3.18%) and Nifty 50 TRI (3.48%), 13 strategies managed to outperform the BSE 500 TRI, and 8 beat the Nifty 50 TRI. This translates to nearly 48% and 30% of Large Cap strategies delivering alpha over respective benchmarks. The performance distribution highlights that while the category is benchmark-sensitive, selective stock picking and conviction-based positioning still allowed several managers to stand out, especially those with focussed exposure to high-quality large-cap franchises.

Among the top-performing Large Cap PMS strategies in April, Tulsian PMS led the pack with a strong 5.64% return, likely driven by active sector rotation and a high-conviction portfolio. ithought’s TRUBLU strategy followed at 4.75%, reflecting disciplined quality-focussed investing. Concept Investwell’s Legend delivered 4.60%, benefitting from value-centric large-cap exposures. 

All the top-3 strategies comfortably outperformed the category average and benchmarks, demonstrating the ability of selective managers to generate alpha even in relatively efficient large-cap segments.

Below is a table of the top-3 Large Cap PMS strategies for April 2025.

Large and Mid Cap: In April 2025, Large & Mid Cap PMS strategies delivered a category average return of 2.49%, underperforming both the Nifty 50 TRI (3.48%) and BSE 500 TRI (3.18%). Despite the overall market rebound, this segment saw muted returns as midcap stock selection proved challenging. While large-cap components benefited from index momentum, midcaps faced intermittent volatility, likely due to valuation pressures and selective institutional interest. The category’s blended exposure made it more sensitive to sectoral rotation and stock-specific events. Still, a few strategies managed to outperform benchmarks, particularly those adopting differentiated models or dynamic quant-driven approaches.

Out of 22 PMS strategies tracked in the Large & Mid Cap category, only 5 managed to outperform the BSE 500 TRI, while just 2 beat the Nifty 50 TRI. This implies alpha generation was limited to 23% and 9% of strategies, respectively, underscoring the challenge of managing blended portfolios during sideways midcap movement. The average return of 2.49% reflects the drag from the midcap portion, even as large-cap allocations supported some downside protection. The dispersion in returns suggests a wide gap in stock-picking efficacy, with few managers able to navigate the volatile undercurrents across the mid-market segment.

ArthAlpha’s Machine Learning Equity Quant strategy topped the Large & Mid Cap category with a sharp 4.80% return, showcasing the strength of its data-driven approach in navigating dynamic market conditions. Alchemy Capital’s Smart Alpha 250 followed with a strong 4.18%, reflecting well-researched high-conviction stock picks. Dynamic Equities’ Bluechip strategy posted 3.75%, benefitting from quality large and midcap selections. Together, these strategies underline the advantage of active allocation and tactical stock positioning in blended-cap portfolios.

Below is a table of the top-3 Large and Mid Cap PMS strategies for April 2025.

Sector & Thematic: Sector and Thematic PMS strategies posted a respectable average return of 2.46% in April 2025, slightly above the Multi Cap average but still trailing key benchmarks i.e the BSE 500 TRI (3.18%) and Nifty 50 TRI (3.48%). Thematic funds typically thrive on targeted sectoral trends, and this month’s top performers leveraged strong momentum in digital, healthcare, financials, and ESG-linked themes. While the category remains inherently volatile due to concentrated exposures, it offered attractive upside for well-positioned strategies. The broader average suggests a mixed outcome across themes, with success hinging on precision in sector allocation and timing amid ongoing macro and policy tailwinds.

Of the 21 strategies in this niche category, 8 outperformed the BSE 500 TRI and 6 beat the Nifty 50 TRI, which equates to 38% and 29% alpha generation, respectively. With an average return of 2.46%, the category demonstrated selective success. The outperformance by top strategies highlights the payoff of concentrated, high-conviction bets in structurally strong sectors. However, the lag in the rest of the cohort signals that not all themes benefitted equally from April’s macro environment. Thematic PMS offerings remain powerful tools when sectoral momentum aligns, but they carry inherent risks if themes underperform broader indices or face cyclical fatigue.

Valcreate’s IME Digital Disruption strategy led the thematic category with an impressive 6.97% return, tapping into strong digital adoption and innovation trends. BugleRock’s Growth Opportunities Portfolio followed with 5.49%, likely riding on sector rotation and earnings visibility. InCred’s Focused Healthcare Portfolio clocked 5.30%, benefitting from renewed interest in defensive healthcare plays. All three strategies comfortably beat the category average and benchmarks, reinforcing the value of well-curated thematic exposures in alpha generation.

Below is a table of the top-3 Sector and Thematic PMS strategies for April 2025.

Multi Cap & Flexi Cap: Multi Cap and Flexi Cap PMS strategies posted an average return of 1.98% in April 2025, delivering steady but below-benchmark performance. The flexibility to invest across market capitalizations helped contain downside but did not translate into broad-based outperformance. While benchmark indices like the BSE 500 TRI and Nifty 50 TRI returned 3.18% and 3.48% respectively, the category trailed due to selective participation and varied strategy constructs. However, a few standout performers in the category harnessed sectoral momentum and tactical agility to post impressive returns. The segment remains a diverse mix of styles, where manager skill significantly influences monthly performance dispersion.

Out of 238 tracked strategies in this segment, 62 outperformed the BSE 500 TRI and 52 beat the Nifty 50 TRI. This translates to alpha generation of 26% and 22% respectively. While the average return stood at 1.98%, individual strategy performance ranged widely. The large base of strategies in this category reflects its popularity and flexibility, but also results in sharp return differentials based on manager positioning. Top performers significantly outpaced benchmarks, underscoring the potential of dynamic allocation across cap curves and sectors. However, the broader underperformance signals that many strategies may have missed key market trends or stayed defensive.

Qode Advisors led the category with two standout strategies: Qode Tactical Fund returned 9.56%, and Qode All Weather followed with 8.72%, both showcasing tactical responsiveness and consistent adaptability. 2Point2 Capital’s Long Term Value Fund delivered 8.10%, reflecting the strength of conviction-driven value picks. Alchemy Capital’s High Growth strategy posted a robust 7.14%, benefitting from focussed high-growth exposures. Each of these top performers comfortably beat benchmarks and category average, reaffirming that diversified, actively managed flexi-cap strategies can deliver strong alpha.

Below is a table of the top-3 Multi Cap and Flexi Cap PMS strategies for April 2025.

Mid Cap: Midcap PMS strategies delivered an average return of 1.88% in April 2025, trailing both the BSE 500 TRI (3.18%) and Nifty 50 TRI (3.48%). Despite the Nifty Midcap 150 index gaining 4% during the month, many strategies struggled to fully capture the upside. This gap suggests that broader index performance may have been skewed by a handful of heavyweights, while many midcap picks failed to participate meaningfully. Valuation sensitivities and scattered earnings reactions also contributed to underwhelming performance. While select managers found alpha pockets, the category overall reflected the difficulty in navigating volatile and stock-specific movements within the midcap universe.

Among the 23 strategies tracked in the Midcap category, only 6 outperformed the BSE 500 TRI and 3 beat the Nifty 50 TRI, translating to alpha generation by 26% and 13% of strategies, respectively. This limited outperformance underscores the narrow breadth of midcap leadership in April. The average return of 1.88% points to a conservative stance by several managers, possibly reflecting risk aversion or high cash positions. While index-level gains suggested a healthy midcap rally, actual fund performance revealed the challenges of broad-based participation. Only those with high-conviction bets in select outperformers were able to generate meaningful excess returns.

Master Portfolio Services’ India Growth Strategy led the Midcap category with an impressive 5.14% return. It likely benefitted from good exposure to emerging growth leaders. Emkay Investment Managers’ Pearls followed closely with a strong 4.24%, signalling successful identification of midcap momentum plays. Asit C Mehta’s ACE – Midcap continued its solid performance, posting 3.71%. All of the three strategies significantly outperformed the category average of 1.88%, highlighting skilled navigation of the midcap rally.

Below is a table of the top-3 Mid Cap PMS strategies for April 2025.

Small and Mid Cap: Small & Mid Cap PMS strategies posted an average return of 1.62% in April 2025, underperforming broader indices despite a supportive market backdrop. While midcap indices delivered strong gains, the smallcap space remained subdued, with selective stock participation. The blended nature of this category meant performance was sensitive to both ends of the market cap spectrum, and several managers appeared cautious, likely due to volatility in smaller names. The underwhelming average return reflects a conservative stance or misalignment with outperforming sectors. Though some strategies captured the rally better, the overall outcome suggests narrow market leadership and stock-specific performance gaps.

Of the 49 strategies tracked in this category, just 10 outperformed the BSE 500 TRI and 9 beat the Nifty 50 TRI—translating to 20% and 18% alpha generation, respectively. With an average return of 1.62%, the category broadly lagged benchmarks, highlighting the challenges of balancing exposure across volatile small and midcap stocks. Many strategies likely maintained higher cash or avoided momentum pockets, resulting in performance drag. The dispersion also indicates that capturing alpha required precision in timing and stock selection. In a market with rising indices but uneven participation, only high-agility portfolios managed to deliver meaningful outperformance.

Trivantage Capital’s Small and Midcap Financials strategy dominated the category with a stellar 9.86% return, by far the highest across all PMS strategies in April. This was driven likely by focussed exposure to high-performing financial names. Wallfort PMS’ Diversified Fund followed with a strong 5.32%, indicating broad-based stock selection strength. Shriram AMC’s Future GEMS came close with 5.18%, showcasing effective participation in niche growth stories. All three significantly outperformed the category average of 1.62%, delivering standout alpha.

Below is a table of the top-3 Small and Mid Cap PMS strategies for April 2025.

Small Cap: Small Cap PMS strategies struggled to keep pace with broader benchmarks in April 2025, posting an average return of just 0.88%. This fell short of the Nifty Smallcap 250 index’s 1.7% gain, and far behind the BSE 500 TRI’s 3.18% rise. The segment continued to face selective participation and investor  caution, likely due to high valuations and patchy earnings among smaller companies. Liquidity concerns and volatility also played a role in muting returns. While a handful of strategies managed to outperform, the broader category failed to fully capture the market's rebound. This reflects a defensive and selective approach by most managers.

Of the 24 PMS strategies in the Small Cap category, only 5 managed to beat the BSE 500 TRI, and just 4 outperformed the Nifty 50 TRI, translating to alpha generation by 21% and 17% of strategies, respectively. This limited outperformance highlights the difficulty of navigating the smallcap universe, where broader macro relief didn’t translate uniformly to price action. While a few managers captured the upside through focussed bets or thematic positioning, most struggled with either low exposure or poor stock selection. The average return of 0.88% reveals the challenge of scaling performance in a segment still marked by caution.

Hem Securities’ India Rising SME Stars emerged as the best-performing Small Cap PMS strategy with a strong 6.51% return, likely driven by high-growth SME exposures. Ambit’s Emerging Giants followed at 5.47%, capitalizing on scalable niche opportunities in the smallcap space. Aequitas’ India Opportunities Product posted a healthy 4.77%, reflecting strong alpha from contrarian bets. These top performers demonstrated that despite the broader segment’s struggles, agile and research-driven stock selection could still yield solid outperformance.

Below is a table of the top-3 Small Cap PMS strategies for April 2025.

Outlook for May 2025

After a sharp bounce from March lows, markets enter May on firmer ground—but not without caution. Broader recovery has been uneven: while 85% of NSE-500 stocks rose in April, two-thirds still trade below their September 2024 highs. For PMS investors, this divergence underlines the value of stock selection over index tracking.

Valuations have cooled modestly. Large caps now trade closer to long-term averages, but mid and small caps remain expensive relative to history. This calls for measured optimism, especially as earnings growth is expected to moderate. Private banks, capital goods, and consumer sectors continue to offer relative stability, while metals and IT face near-term headwinds, according to different experts.

Importantly, DII ownership has overtaken FII stakes in the Nifty-500, reflecting stronger domestic confidence even as global flows stay volatile, INR is strengthened and rising forex reserves add macro comfort.

For PMS investors, this is a time to lean on quality managers with valuation discipline and sectoral insight. Cycles are shifting, and opportunities are returning, just not all at once. In this phase, patience is alpha. Stay the course, stay selective.