The rally leading up to Diwali continued with indices moving up strongly in November as well. Falling crude oil prices and cooling inflation rates propelled the markets, with the Nifty rising by a strong 4.14% in November. The move was mostly led by large-cap stocks. Midcap and small-cap indices underperformed, making the rise a narrowly led rally. However, the BSE 500 delivered a 3.32% return for the month, though it was still lower than Nifty’s move. Foreign Institutional Investors (FIIs) net bought Rs. 22,546 crores worth of shares in November. In general, FIIs buy blue-chip index stocks, which may have led to Nifty’s outperformance. Green shoots of lower inflation in the US and Euro Zone aided positive sentiments. However, it was a weak show from PMS players during the month as only 36 of the 308 (less than 1 in 8) strategies outperformed the Nifty. However, 255 strategies delivered positive returns in November. Multi-cap PMS strategies dominated the list of top performers compared to other investment approaches. Funds with large-sized assets underperformed the indices in November.
Top 10 PMS Strategies of November 2022
From the 308 strategies tracked and analyzed by PMS Bazaar, here are the top 10 performers in November 2022.
Multicap strategies dominated the top 10 performers list with four such names figuring in it.
The ACE Multicap strategy from ASIT C Mehta Investment was the best performer, delivering a staggering 13.54% during November. The PMS usually invests in 25 highly undervalued, high-quality stocks.
The second was the Wealth Builder strategy – which invests in a concentrated portfolio if stocks that are significantly below their intrinsic value – from Fractal Capital Investments, which delivered 9.06% during the month.
Next came the Dividend yield strategy of Green Portfolio, which delivered 9% returns in November. The PMS invests in 15-20 high dividend yield stocks. It aims to generate dividend income and capital appreciation.
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The following chart gives the returns of the top 10 PMS strategies in November 2022 and benchmarks these to the Nifty, which is depicted by the bar line.
Category-wise performance of PMS providers
The following chart gives the chart of how strategies across market capitalization performed during the month of November. Thematic strategies delivered the best returns, while midcaps underperformed heavily.
Among the 18 PMS strategies with Small-cap focus, 6 outperformed during the month. The category average return was 2.21%, while the BSE Small-cap delivered 2.44%.
Minerva India Under-served strategy from Right Horizons delivered the best returns in the category, at 6.46%. The India Opportunities Product from Aequitas Investment Consultancy with 5.75% return and the Diversified Long Term Value strategy from Counter Cyclical Investments with 5.63% returns took the second and third spots respectively in the small-cap category.
Small & Midcaps
The 28 PMS strategies of the small & midcap category delivered 1.29% average returns in the month. Topping the charts was the Growth Fund from Green Lantern Capital, with 5.28% returns during November 2022, closely trailed by Abakkus Emerging Opportunities Approach from Abakkus Asset Manager at 5.10%. The third slot was taken by the Rising Star Opportunity strategy of Valentis Advisors, which delivered 4.73% returns.
It was a relatively dull month for midcap PMS strategies as only 5 of the 21 schemes outperformed the Nifty Midcap 100 and the category delivered 0.88%.
ACE Midcap from Asit C Mehta Investment Intermediates was the best of the lot and delivered 7.25% returns. The India Resurgent Portfolio Series III from JM Financial Services took the second slot with 3.31% returns in November, followed by Vallum India Discovery from Master Portfolio Services in the third place with 3.13% returns.
The following graph shows the category average return of midcap strategies and that of the Nifty Midcap 100 index for November 2022.
Large and Midcap
The 11 large & midcap PMS strategies delivered 2.04% returns on average in November.
The top three performers were: Large & Midcap Strategy from Care Portfolio Managers (3.6%), Alpha Fund from Green Lantern Capital (3.33%) and Value Equity+ from LIC MF (2.9%).
Though the Nifty and many large-cap stocks rallied sharply in November, most PMS strategies lagged benchmarks.
Only 2 of the 25 large-cap PMS strategies outperformed the Nifty, which delivered 4.14% during the month. The average returns for the category came in at 2.13%.
Tulsian PMS was the top performer with 5.63% returns. The Large cap strategy of Acepro Advisors delivered 4.86% and came second. The third was the large-cap strategy of ICICI Prudential PMS.
The graph below gives the performance of large-cap PMS versus Nifty’s returns in November 2022.
Though multi-cap strategies figured prominently among the top 10 performers, it wasn’t a great show overall.
Of the 152 funds in the category, only 27 outperformed the broader market BSE 500 index. While the category average return was 1.79%, the BSE 500 delivered 3.32%.
The Wealth Builder strategy from Fractal Capital Investments led the charge with 9.06% in November. ICICI Prudential’s Value Strategy came second, delivering 6.72% returns. The YNG Strategy of Carnelian Asset Advisors was the next on the list with 6.3%.
The graph below gives the performance comparison of the PMS category and the benchmark BSE 500.
The thematic category did reasonably in November 2022 with the average return for the segment coming in at 2.84%.
Green Portfolio’s Dividend Yield strategy, with 9% returns, came as the chart-topper. The Dawn strategy of Invesco with 4.36% came second. A distant third was the Index Fund from Green Portfolio.
With the inflation trajectory on the decline over the past couple of months, there are expectations of RBI going slow or pausing on rate hikes in the near future. As earnings get back on track in a full COVID-free year, markets look poised for interesting action as we head into the new year.
Markets end on a weak note in December, but 211 PMS strategies outperformed the Nifty.
After a strong November, markets had a rather rough month in December, with all indices – large, mid, and smallcap – ending in the red. However, unlike in previous months, the BSE Small Cap and Nifty Midcap 100 fell less than the Nifty 50.
Investing in turnaround stories: How buying stocks at their all-time high profits and prices works
India’s benchmark indices are near their lifetime highs. After a period of consolidation and notwithstanding the recent correction, markets continue to rally. Often, we are told to be cautious at higher market levels. Should you invest in a stock when it is beaten down or when it is at an all-time high? Most would go with the former strategy for making money, as they believe that is the best chance for making solid gains. But that isn’t how great wealth is created. It is in buying turnaround companies where the changes have just taken shape and the stocks are at all-time highs price-wise and profit-wise that great gains are made, according to Rohan Mehta, CEO & Fund Manager of Turtle Wealth Management.
Exclusive Outlook on India’s Outperformance and its Sustainability
Every major stock market has suffered net losses over the last year, but the Indian market has suffered less than most others. The S&P 500 index—the broad gauge of the US stock markets— is down 17 percent. Frankfurt’s DAX index is down 21 percent. The Shanghai Composite is down 15 percent. But the Nifty is down only 4 percent and even its US dollar-denominated twin, the Defty, is down only 12 percent despite the depreciation in the rupee during this period. Is there a clear explanation for the relative outperformance of Indian equities? This blog shall cover how the Indian equity market has outperformed global markets and in which areas.
Amidst Turbulence, 277 of 298 PMS Strategies outperformed NIFTY in September 2022
Having Q2 Results on the deck, India Inc’s profit is expected to shrink for the fourth straight quarter however there is a rising revenue momentum, which can be inferable from moderate price hikes and steadily rising volumes. The said expectations of the Indian market had translated into the index performance where NIFTY posted a fall of 3.74% in the month of September. Global markets are also confronting inflationary pressure on their earnings expectations yet with a higher degree of inflation when compared to India. The US stock market’s weakest month of the year is typically September when Dow 30 posted a fall of 8% and the S&P 500 also fell by over 8%. In the Indian Alternative Investment segment, the PMS strategies reacted to the market sentiments, yet managed the risk relatively well with 277 strategies (out of 298 Strategies) beating NIFTY in September. Many boutiques and smaller AMCs performed well this month, compared to the lukewarm performance of star fund managers this month.
Investing Through Cycles
Understanding how various types of stocks, bonds, and other assets have historically performed at various points in the business cycle may help investors identify opportunities as well as risks. This business-cycle investing approach differs from both short- and long-term approaches because shifts from one phase of the business cycle to the next have historically taken place every few months or years on average. This blog will discuss how knowing the cycle may help investors evaluate and adjust their exposure to different types of investments, as the likelihood of a shift from one phase of the cycle to the next increases. Historically, different investments have taken turns delivering the highest returns as the economy has moved from one stage of the cycle to the next. Due to structural shifts in the economy, technological innovation, regulatory changes, and other factors, no investment has behaved uniformly during every cycle. However, some types of stocks or bonds have consistently outperformed others and knowing which is which can help investors set realistic expectations for returns.
Investing Through Uncertain Times
If there is one thing that markets hate, it is uncertainty and with trade wars, political ructions, and mixed economic signals — not to mention a host of company-specific factors — it's tempting for investors to sit on the sidelines until the outlook becomes clearer. But, investors need to know how to invest through uncertain times and when and how soon uncertainty or the present market crisis will end. This webinar blog covers an interactive session with Mr. Samir Arora, in which he answered questions on topics related to Inflation, uncertainty in the Global markets, Recession, etc.
Indias Growth Super Cycle and Long-Term Themes
According to IMF data, the Indian economy would likely have the fastest real growth in Asia in 2022 and be the only one to experience nominal double-digit growth. This makes India the fastest-growing Asian economy in the Asian region in 2022–2023. In this blog, we shall describe India’s growth super-cycle, and where the Indian economy stands today
211 of 291 PMS Strategies outperformed NIFTY in August 2022
Amidst global turbulence, our Indian economy looks very stable & promising. With FIIs returning back strongly and NIFTY nearing 18K Mark, PMS strategies have capitalized on the positive market sentiment to generate a positive performance in August 2022. This August, almost 72% of PMSes outperformed NIFTY & just 3 of them returned a negative yield.