Out of 200 PMS investment approaches within the PMS Bazaar universe that disclose their full holdings, they have allocated 1190 unique stocks across market cap - large, mid and small caps
The Nifty 50 reached a new high in August 2024, and the index has closed higher for three consecutive months. As such, since January the Nifty has been up over 16%.
In this regard, when it comes to PMS, around 280 PMS approaches outperformed the S&P BSE 500 TRI (0.96%), and 230 PMS strategies outperformed the Nifty 50 TRI (1.36%) for August.
Small & Midcap PMSes led the return chart with a 2.32% category average gain, followed by Thematic, Smallcap, Flexicap, Midcap, and Multicap. Largecap and Large & Midcap PMSes delivered uninspiring returns. Consequently, five out of seven PMS categories beat benchmarks, while Largecap and Large & Midcap categories trailed.
Overall, 54% of the total PMS approaches within the PMS Bazaar universe outperformed the Nifty 50 TRI, maintaining the winning trend seen in previous months. When benchmarked against the S&P BSE 500 TRI, nearly 66% of PMS funds clocked alpha, which is higher than the 50% hit ratio in July.
Diversified allocations across stock market capitalisations have contributed to the PMS performance. PMS Bazaar data revealed that PMS investment approaches have predominantly invested in large and small cap stocks. Out of 200 PMS investment approaches within the PMS Bazaar universe that disclose their full holdings, they have allocated 1190 unique stocks across the market cap.
That said, PMS Fund Managers have hedged against volatility with more allocation to large cap stocks like HDFC Bank, ICICI Bank, and Larsen & Toubro, yet the category-wise allocation is more skewed towards small caps. For instance, 75 PMS investment approaches have allocations to HDFC Bank, followed by ICICI Bank with 67 PMSes allocating to this stock and 59 PMSes have allocations to Larsen Toubro.
Here are the top 5 stocks that PMSes hold in the large cap category
Here are the top 5 stocks that PMSes hold in the mid cap category
Here are the top 5 stocks that PMSes hold in the small cap category
Top stock allocations
While a higher number of PMSes have greater numbers of large cap stocks in their portfolios, the allocation towards small cap segments is higher. For instance, Larsen & Toubro, a large cap stock, has the highest allocation from a PMS, followed by Vedanta, another large cap stock and Shakti Pumps, a small cap stock. So, it is clear that PMS investment approaches are taking a relatively safer bet with higher allocation towards stocks in the large cap category.
However, the allocation towards small cap stocks is still significant, indicating a balanced approach to risk management. The performance of PMS funds in August 2024 highlights the importance of diversification and the ability to identify opportunities across different market cap segments.
Takeaway
The PMS Bazaar analysis reveals that PMS funds are taking a relatively cautious approach by allocating a significant portion of their portfolios to large-cap stocks. However, they are also actively exploring smaller-cap opportunities to enhance returns.
Investors considering PMS funds should carefully evaluate their investment objectives and risk tolerance before making any decisions. As such, the stocks mentioned in this blog are not to be taken as any kind of recommendation or advice. These are for informational purposes only. Consulting with a financial advisor can provide personalised guidance.
Recent Blogs
Jan-2025 AIF Performance: Market Pressures Weigh on Returns, Long-Short Funds Outshine
January 2025 was a challenging month for Indian equities, and Category III Alternative Investment Funds (AIFs) reflected broader market headwinds. Several macroeconomic factors—including geopolitical tensions, currency depreciation, and US-led global trade disruptions—contributed to investor uncertainty. Additionally, corporate earnings for Q3FY25 were underwhelming, with the worst earnings downgrade ratio since Q1FY21.
Singularity on India’s New Fund of Funds: Implications for AIFs and Startup Investments
Singularity AMC, a leading provider of capital and differentiated market access for high-growth assets, shares its perspective on the government’s newly announced ₹10,000 crore Fund of Funds (FoF) and its potential to reshape India’s startup investment landscape.
.jpg)
PMS Performance in January 2025: A Challenging Month for Equity Strategies
While January’s numbers were largely in the red, investors should focus on long-term performance and diversification strategies to ride out volatility
AIFs in 2024: Decoding Resilience, Returns, and Art of Alpha Creation
The year 2024 was a pivotal one for India’s alternative investment funds (AIFs), reflecting their enduring appeal to sophisticated investors amidst an evolving economic landscape. Despite facing challenges from a more tempered equity market compared to 2023, AIFs continued to demonstrate their alpha-generation potential. With strategies tailored to navigate market complexities, these funds outperformed traditional benchmarks like the Nifty50 TRI, which posted a modest 10.09% return in 2024.
Resilient Returns: How PMS Strategies Thrived in a Dynamic 2024
PMS schemes shine in 2024 with record-setting performances; strategies navigated volatility, out-performed benchmarks, and strengthened investor confidence across the board
AIFs in Dec-2024: Long-Only Funds Outperform, Best Fund Clocks 56% Even As Markets Face Broad Declines
Selective stock-picking drives resilience and once again shows it is possible to outshine even in amid market downturn
Quant Investing vs Traditional PMS: Can Quant Beat Human Intuition
PMS Bazaar recently organized a webinar titled “Quant Investing vs Traditional PMS: Can Quant Beat Human Intuition” which featured Mr. Vivek Sharma, Head of Investment, India, Estee Advisors. This blog covers the important points shared in this insightful webinar.
PMSes Deliver Up to 7.2% Return Amid 3rd Straight Month of Market Decline in Dec-2024
Over 340 strategies outperformed Nifty50 TRI and more than 170 clocked positive returns, showcasing resilience despite challenging market conditions