75 out of 180 strategies beat Nifty that clocked 12.3% gain in the last 3 months. Read on to know how different PMS categories have performed in various period...
The performance of PMS investments should be viewed over long-term, even though it is important to monitor short-term performance
Well-begun is half the job done, and taking this thought forward is the Indian PMS industry, which reported another solid set of gains for July. After a marauding March, markets have rallied strongly in April, May and June, helping broad base the recovery. The month of July was no exception with the Nifty 50 jumping 7.5% as investors shrugged off coronavirus pandemic worries. The best PMS performers of the month clocked-double digit returns, with close to four dozen strategies out-performing the popular benchmark. The performance domino effect was seen in longer tenures as well. In the 3-month return snapshot, top gainers, dominated by smallcap PMSes, have clocked 25-39% return and as many as 75 strategies overall have beat the Nifty. In the 1-year time period, top schemes have clocked over 50%.
A month in review
July, in a sense, was similar to June, with the largecap index Nifty 50 delivering 7.5% gain. This meant that PMSes would have a good month. As many as 44 PMSes of the 180 tracked by PMSBazaar from 85+ AMCs beat the index. Simply put, 25% of PMSes generated alpha when compared to 50-share Nifty. This, however, is a lower number compared to over 40% in June.
The 5 best performers of July 2020 were Moneylife MAS Growth (up 16.03%), Equirus Securities Long Horizon Fund (up 13.34%), Nine Rivers Capital Aurum Small Cap Opp. (up 13.00%), Right Horizons Minerva India Under-Served (up 12.90%) and Kotak Fintech ( up12.5%). You can notice the dominance of smallcap and multicap schemes in this elite list.
Largecap PMS category in July delivered 5.45% return, under-performing Nifty. The three best performers, which all beat Nifty, are AccuraCap Alpha10 up 8.93%, Asit C Mehta Investment Intermediaries Ace 50 up 8.7% and Varanium Capital Advisors Large Cap Focused Fund up 7.90%. The Varanium scheme was also among the best category performers in June.
In the Midcap PMS category, July 2020 average gain was a sedate 6.33%, which was an out-performance compared to Nifty Midcap 100's 5.20%. The three best performers are Motilal Oswal Focused Midcap up 11.46%, Systematic Dynamic Investment Portfolio up 9.84% and Sundaram Alternates S E L F Portfolio up 8.70%. The Sundaram scheme was a June top performer too.
In the Smallcap PMS category, the July 2020 average gain was 7.23%, which was an out-performance compared to BSE SmallCap's 5.20 % return. The three top performers are Nine Rivers Capital Aurum Small Cap Opp. up 13.00%, Right Horizons Minerva India Under-Served up 12.90% and AccuraCap PicoPower up 12.30%.
In the Multicap PMS category, which happens to be the largest in terms of products, the July 2020 average gain 6.04%, which was an under-performance compared to BSE 500's 6.8%. The three top performers in the over 100-strong club are Moneylife MAS Growth (up 16.03%) , Satco Capital Markets Growth & Momentum (up 11.20%) and Acit C Mehta ACE Multicap ( up 10.9%)
In smaller categories, there were some distinct winners for July. The Small & Midcap category best performer was Equirus Securities Long Horizon Fund (up 13.34%). In the Thematic & Sector fund category, Kotak Fintech was the best with 12.5% gain. In the Large & Midcap space, Bonanza Growth was the chart-topper with 12.16% rise.
In the period of May, June and July, markets saw a reasonable amount of recovery. If May was about consolidation, June and July were months when markets continued to inch upwards as the 'unlockdown' was in full swing and equity markets hungry for growth. In the 3 month period ended July 31, the largecap-oriented Nifty 50 clocked a respectable 12.3% gain. As many as 75 PMSes of the 180 tracked by PMSBazaar beat the index's gain i.e. over 4 out of 10 PMSes generated alpha.
The Multicap PMS category notched up a 3-month average return of 11.82%, under-performing the BSE 500's gain of 12.80%. The top three performers were Karma Capital Advisors Long Only India Public Equity (up 33.20%) , Asit C Mehta Investment Intermediaries Ace Multicap up 26.90% and MRG Investment Partners - Wealth Maximizer ( up 25.59%)
The Largecap PMS category delivered a 3-month 9.61 % return, under-performing the Nifty 50. The three best performers are ICICI Pru Largecap Portfolio up 16.88%, Asit C Mehta Investment Intermediates Ace 15 up 16.5% and the same PMS shop's ACE 50 up 15.10%.
In the Midcap PMS category, May-July 2020 average gain was 13.57%, which was an under-performance compared to Nifty 100's gain of 14.6%. The three best performers are Motilal Oswal Focused Midcap up 22.99%, Centrum PMS Good to Great up 21.10% and the same PMS shop's Multibagger (Deep Value I) up 21.00%.
In the Smallcap PMS category, the 3-month average gain was 17.59%, which was a slight out-performance compared to BSE SmallCap's 17.3% return. The three best performers are Nine Rivers Capital Aurum Small Cap Opp. up 38.90%, AccuraCap PicoPower up 25.21% and Negen Capital Small Cap Emerging up 23.92%.
In the 3-month period, the Small & Midcap category best performer was Equirus Securities Long Horizon Fund (up 27.25%). In the Thematic & Sector fund category, Kotak Pharma was the best with 18.30% gain. In the Large & Midcap space, Bonanza Growth was the chart-topper with 17.26% rise.
As things stand today, the 1-year return Nifty picture looks break-even, down just 0.4%. So, markets are flattish. Let us see how PMSes have fared. PMSes have done a remarkable job in terms of wealth protection, with 115 of 164 falling less than the Nifty. So, nearly 7 out of every 10 PMSes have shielded investors better than Nifty in the last 12-month period.
The Multicap PMS category notched up a 1-year average return of 5.56%, out-performing the BSE 500's marginal rise of 0.20%. The 3 best performers are Stallion Asset Core Fund up 24.48% , Sameeksha Capital Equity Fund up 23.50% and Satco Capital Markets up 23.3%
As on July 31, the Largecap PMS category delivered a 1-year average return of 3.49%, out-performing Nifty 50. The best performers list in 1-year period are AccuraCap Alpha10 up 17.73%, Ambit Inv. Advisors Coffee Can up 15.90% and Pelican PE Fund up 12.94%.
In the Midcap PMS category, the 1-year average gain was 8.77%, which is an out-performance compared to Nifty 100's loss of 2.80%. The three best performers are Phillip Capital Emerging India Portfolio up 22.33%, Centrum PMS Deep Value IV up 20.30% and Sundaram Alternates S E L F Portfolio up 15.20%.
In the Smallcap PMS category, the 12-month average gain was a meagre 1.44%, which was an under-performance compared to BSE SmallCap's 2.60% return. The three best performers are Ambit Inv. Advisors Emerging Giants up 26.00%, AccuraCap PicoPower up 21.86% and Centrum PMS Micro up 5.70%.
In the 1-year time period, Karvy Capital Demeter was the best debt PMS strategy with 11.81% gain. NJ Advisory Dynamic ETF Allocation was the best in the PMS exchange traded product space with 12.47% rise. Bonanza Growth was the best PMS Large & Midcap space with a neat 16.58% uptick. Equirus Securities Long Horizon Fund was the top performer in the PMS Small & Midcap category with a whopping 39.37% gain. Kotak Pharma was the best PMS thematic/sector strategy with a rollicking 52.4% rise
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