Over 250 PMSes beat Nifty in July

With 97% schemes out-performing the benchmark, focus turning on smallcap strategies that have done exceedingly well

12 Aug 2021
Over 250 PMSes beat Nifty in July

The action in July, just like June, shifted out of the benchmark indices to the broader market. This is possibly why investors have gone into mid and smallcap stocks in a big way, thereby resulting in strong performance. Given their concentrated andd well-research approach, this has made the job of PMS strategies a tad easier when it comes to beating leading benchmarks. In June over 200 PMSes beat Nifty, and in July the success rate was even higher with 252 PMSes humbling the 50-stock Nifty portfolio. Smallcap PMSes stood out with solid performances. As the economy opens up, small and medium sized companies will do better than stable earnings from large firms. The PMS strategies playing the cyclical theme to the hilt will continue to outperform. Read more about the performance.


Best strategies of the month

Though an apple to apple comparison may not be ideal when comparing 260 odd PMS strategies, investors at the end of the day love returns. Hence, schemes with higher returns get more eyeballs. Ofcourse, the risk part of the entire return game needs to be understood, which is an exercise better done by advisors. Nevertheless, July 2021 saw some fantastic performances from PMS strategies.

At number 1 was Right Horizons Minera India Under-Served that recorded a swashbuckling show with the 1-month return jumping to 22.95 per cent, more than 3 times the 6.16 per cent gains logged by BSE Smallcap index. Do note that this PMS strategy was ranked overall number 2 in June.

At second was Aequitas Investment Consultancy India Opportunities with a whopping 14.98 per cent gain in July 2021, more than double the smallcap index.

Green Lantern Capital Growth Fund was ranked no. 3 with an impressive 14.62 per cent, Bonanza Value was no. 4 with 14.41 per cent and ICICI Pru PMS PIPE strategy was 5th with a solid 13.30 per cent return in July 2021. Among the top-5, Bonanza Value is the only multicap strategy and do note in June too this PMS was ranked second overall.

From 5th to 10th slot, PMS performers clocked 10-13 per cent gains. Care Portfolio Managers Growth Plus Value showed 13.2 per cent return, followed by Agreya Concentrated Value Discovery (up 11.85 per cent), Centrum Micro (up 11.63 per cent), QED Capital Advisors Alphabets (up 10.51 per cent) and Abakkus Emerging Opportunities (up 10.50 per cent).

At a time when headline benchmarks are struggling to definitely move ahead, top PMS strategies giving double-digit percentage returns is enthusing for PMS investors and the PMS community at large.

Category spotlight

Now, let us take a detailed look at how the main PMS categories have performed vis a vis returns, range, alpha vs. benchmark etc. Do note that we will avoid categories which are small or insigificant.

Largecap - There are 25 largecap PMS schemes. The July 2021 category average reeturn was 2.54 per cent, which beat the Nifty 50's 0.26 per cent slim gain. The share of strategies that beat the Nifty was high, with 22 of the 25 PMSes displaying outperformance. The 3 top performers were QED Capital Advisors Alphabets (up 10.51 per cent), Alchemy Leaders (up 10.20 per cent) and ICICI Pru Largecap Portfolio (up 5.87 per cent).

Large & Midcap - There are half a dozen PMS strategies in the large & midcap category, which has over the last year or so seen some launches. The July 2021 category average gain was 2.94 per cent. The top performers included Bonanza Growth (up 6.12 per cent), Upside AI (up 3.89 per cent) and IDFC NEO (up 3.39 per cent). NEO had performed well in June as well.

Midcap - There are 22 PMS funds in midcap space, with quite a few that have seen a full market cycle. The July 2021 category average return stood at 4.75 per cent, higher than the 3.13 per cent logged by Nifty Midcap 100 (up 3.13 per cent). Barring one, all midcap PMS strategies posted positive gains with top 3 performers being from the house of Centrum viz. Centrum Multibagger (up 7.5 per cent), Centrum Good to Great (up 7.39 per cent) and Centrum Deep Value (up 7.06 per cent). Deep Value strategy was amongst the best in June as well.

Multicap - This is the biggest category of strategies tracked by PMS Bazaar. There are about 150 schemes. The category average gain in July 2021 was 4.46 per cent, massive out-performance over 1.35 per cent. The top 3 performers in the multicap category this month are Bonanza Value (up 14.41 per cent), Agreya Concentrated Value Discovery (up 11.85 per cent) and Green Lantern Capital Alpha (up 9.70 per cent). Bonanza Value continues out-perform as it did in June 2021.

Sector - There are half a dozen sector PMS funds. The category average gain was 2.63 per cent. The 3 best performers in July 2021 are Trivantage Capital Management Resurgent Financials Equity (up 4.19 per cent), Kotak Fintech (up 3.85 per cent) and ASK Investment Managers Financial Opportunuties Portfolio (up 3.03 per cent).

Small & Midcap - There are 17 small & midcap PMS strategies. The category average gain in July 2021 was 7.34 per cent, with top 3 performers being Care Portfolio Managers Growth Plus Value (up 13.20 per cent), Abakkus Emerging Opportunities (up 10.50 per cent) and Valentis Advisors Rising Star Opportunity (up 10.40 per cent). None of the small & midcap PMS strategies clocked negative returns.

Smallcap - There are 16 smallcap PMS strategies. The July 2021 category average gain is 9.05 per cent, higher than the BSE Smallcap (up 6.16 per cent). The top 3 performers are Right Horizons Minerva India Under-Served (up 22.95 per cent), Aequitas Investment Consultancy India Opp. (up 14.98 per cent) and Green Lantern Capital Growth (up 14.62 per cent). All the 16 smallcap strategies have recorded positive returns.

Thematic - There are 6 thematic PMS strategies. The top performers in July 2021 are Green Portfolio Dividend Yield (up 10.10 per cent), Green Portfolio MNC Advantage (up 5 per cent) and Anand Rathi Advisors MNC PMS (up 4.60 per cent). Barring 1, all the other thematic PMS strategies showed positive gains.

Recent Blogs

Deep dive into top holdings of PMSes

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

IIFL’s Multicap PMS consistent out-performance backed by their cautiously-optimistic approach

It is quite inspiring to hear out the convictions of the out performers during the current uncertainties. Mr. Mitul Patel’s cautiously optimistic approach is evidenced by consistent out performance of IIFL PMS strategies. Read on to get inspired by the optimism of Mr. Mitul Patel.

Everybody makes money at some point, repeating profit over cycles is more important

Time tests us all. In the investing world of cut-throat competition, it is unlikely that one will be successful over a long period of time. But, there are exceptions. In 1999, Lashit Sanghvi, Ashwin Kedia, Rakesh Jhunjhunwala and Hiren Ved founded Alchemy Capital Management and that institution has stood rock solid since then. Very few portfolio managers have been managing this money under PMS for such a long period of time. As of March 2021, Alchemy managed about $900 million assets across domestic and offshore mandates. So, when such experienced professionals share wisdom nuggets with investors, one better listen carefully.

Impact of COVID on the Economy Markets and Marcellus PMS Portfolio

Ascertain whether the foundations of Indian economic recovery are in place? Is India on the verge of the 5th Economic Boom? Why it makes no sense to time the entry/exit of CCP?. Here is an Excerpts from the Exclusive Webinar on " Impact of COVID on the Economy, Markets, and Marcellus PMS Portfolio" by Mr. Saurabh Mukherjea & Mr. Rakshit Ranjan, Marcellus Investment Managers - PMS

3 Investing Themes That Work for Investors Eyeing 2025

The dream to hit a $5-trillion Indian economy is still alive. It was expected to happen in 2025, but then Covid-19 came and ravaged the path. But, green shoots are beginning to appear even though the number of sceptics questioning a quick recovery is also rising by the day. For long-term investors, these are trying times. Things appear at the cross-roads. Noise levels have risen sharply. At these times, it pays to remain focused and fixed on your investment goal. Those who can keep their eye on the big picture will win hands down. Those who adjust at the slightest discomfort will remain unhappy. In an exclusive webinar with PMS Bazaar, Madanagopal Ramu, Fund manager - Equity, Sundaram Alternates talks about 3 long term investing themes. Read on to know more...

Women Portfolio Managers in PMS

The tradition portrays women as better money managers domestically. Wealth derives from rather Goddesses than Gods as per the belief of many ancient cultures and religions.

PMSes rebound from March lows in style, top strategies clock 80 - 95% gain

Covid-19 induced selling had given a once-in-decade opportunity for patient investors

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.