PMSBazaar has compiled data for the largest number of PMS schemes numbering over 190 across more than 90 portfolio managers
With 2020 year ending on a high, PMS investors signed off the eventful year on a cheerful note as portfolio managers reported upto 12.8% return in December-20. Smallcap, Multicap PMSes topped charts with double-digit monthly gains. Overall, 1 out of 4 portfolio strategies outperformed the 7.8% ascent in Nifty in December, a sign of how PMSes have emerged as a robust alpha generator.
PMSBazaar, which compiles initial data for over 190 PMS schemes across more than 90 managers, has chronicled the rise and rise of PMS as a tool for wealth creation over the years. December 2020 was in sync with the recovery seen in markets after the 'vaccine developments' globally.
Dec-20 in review
The narrative in financial markets has definitely shifted from despair to hope. Countries around the globe are fine-tuning their vaccine roll-out strategies, as Coronavirus is booted out at a rapid pace. Though some countries/regions like the U.S., Britain, Germany still reel from the virus, domestic equities in India have long shrugged off the impact of Covid-19.
In December, the Indian benchmark indices again touched new highs. The Nifty was up 7.8% for the month. In comparison, S&P BSE Smallcap rose 7.2% while the S&P BSE Midcap gained 5.7%. As a representation of multicap portfolios, the S&P BSE 500 advanced 7.7%.
PMS strategies had a great month. None of the 191 PMSes reported negative returns. 44 PMSes out-performed the Nifty.
The best performing PMS in Dec-20 was Negen Capital Small Cap Emerging strategy with 12.83% gain. As the name says, this is a smallcap strategy.
It is followed by Basant Maheshwari Wealth Advisers Equity Fund with 11.51% rise. This is a multicap scheme. Credent Asset Management Growth Portfolio delivered 10.94% advance. This is also a multicap strategy.
Concept Investwell Legend is the 4th best with 10.86%. This is a largecap strategy.
The 5th best is TCG Advisory Services Multicap Fund with 10.85% return.
Also in the top 10 list are Stallion Asset Core Fund (up 10.52%), SageOne Core (up 10.40%), Asit C Mehta Investment Intermediaries Ace Multicap (up 10.2%), Ambit Inv. Advisors Coffee Can (up 10.00%) and Nafa Asset Managers Emerging Bluechip (up 9.81%).
For the purpose of this article, we are mentioning only those categories which have at least 4 funds. This means we will not be mentioning arbitrage, multi asset, ETF categories. Debt strategies are also being ignored.
In the 5-member Large & Midcap category, the best scheme is Emkay Investment Managers Emkay Lead with 8.1% gain.
In the 19-member Largecap category, Concept Investwell Legend is best with 10.86% gain in Dec-20. Among Largecap PMSes, 9 strategies, including Ambit Inv. Advisors Coffee Can and Right Horizons Indian Business Leader, beat the respective largecap index (Nifty).
In the 19-member Midcap category, Nafa Asset Managers Emerging Bluchip is the best with 9.81% rise. As many as 9 Midcap PMSes, including Motilal Oswal Focused Midcap and Right Horizons Super Value, beat the S&P BSE Midcap index.
In the 107-member Multicap category, Basant Maheshwari Wealth Advisers Equity Fund is the best performing strategy with 11.51% gain. Overall, 27 Multicap PMSes, including Credent Asset Management Growth Portfolio and TCG Advisory Services Multicap Fund, out-performed the S&P BSE 500 index in Dec-20.
In the 5-member Sector fund category, Kotak Fintech is the best scheme with 8% rise in December 2020.
In the 10-member Small & Midcap category, the three best strategies are Valentis Advisors Rising Star Opportunity (up 9.29%), Edelweiss Focused Smallcap (up 9.2%) and JHP Securities Incredible India (up 8.52%).
In the 13-member Smallcap category, Negen Capital Small Cap Emerging is the best with 12.83% jump. Only three Smallcap PMSes were able to beat the S&P BSE Smallcap benchmark this month.
Lastly in the 5-member Thematic category, Green Portfolio Dividend Yield is the best strategy with 7.66% rise.
In a welcome move, Portfolio Managers have been given a 3-month additional extension to comply with new norms relating to fees and charges, direct client on-boarding, nomenclature of ‘investment approach’, performance reporting, documents disclosure etc.
Alternative Investment Funds (AIFs) have just got a major compliance burden off their back for some more time. Markets regulator SEBI has given another relaxation in compliance norms to AIFs in terms of regulatory filings. This paves the way for AIFs to do regulatory filings of March, April, May and June 2020 before August 07, 2020.
We are surprised to note many are not aware that PMS provides all the flexible options available in the Mutual fund industry. Yes, many PMS Companies provide SIP/STP/SWP/SWITCH/TOP UP options .....
PMSBazaar presents an industry-first analysis of the full portfolios of about 60% of India's multi-billion dollar PMS industry
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