There are 3 PMS Investment Approaches which has managed to double investors' wealth (returns of over 100%) in this past year up to July 2024. Find out more:

The past year has been marked by significant market volatility. Geopolitical tensions, inflationary pressures, and China's economic slowdown have led to fluctuating commodity prices globally, impacting company performance and stock prices both in global and Indian markets. These factors, along with domestic market uncertainties like election results (June 2024) and budget changes, have influenced Indian financial markets in the past year. 

Despite these headwinds, PMS investment approaches within PMS Bazaar have demonstrated impressive performance.

Based on July 2024 data, the average return of 362 PMSes, (out of 408 PMSes) that have completed 1 year, within the PMS Bazaar universe was 42.03%, surpassing the Nifty 50 TRI (27.84%) and BSE 500 TRI (38.94%) by a considerable margin. 

Over 80% of PMSes with a one-year track record outperformed the Nifty 50 TRI, and nearly 53% exceeded the BSE 500 TRI. Notably, 95 PMSes delivered returns exceeding 50%. While the majority of PMSes performed well, there were some exceptional cases where investors saw their investments double.

These outcomes highlight the potential benefits of PMS investment strategies in navigating challenging market conditions. Additionally, the fund managers of the PMSes usually have access to proprietary research and analysis that helps in picking the right stocks. Also, PMSes can offer more flexibility than traditional investment funds, allowing managers to tailor their portfolios to some large individual investors' risk tolerance and wealth creation requirements.

It is important to note that past performance is not indicative of future results. However, the strong performance of PMSes in the past year suggests that they can be a valuable tool for investors seeking to navigate challenging market environments.

In this regard, active management has been one of the key factors for the impressive performance of PMS investment approaches. The fund managers of the PMSes are involved in the active selection of stocks and determining entry and exit points. As such, the portfolio has been able to capitalise on opportunities not only in large cap companies, but also in mid, small, and micro-cap companies. This flexibility has allowed them to generate significant returns for investors.

Green Lantern Capital’s Growth Fund

One standout performer is Green Lantern Capital’s Growth Fund, which has achieved a remarkable return of 116.48% in the past year. This small and mid-cap fund has a total AUM of Rs 838.63 crore, representing a significant portion of the AMC’s overall AUM of Rs 882.81 crore. With a track record of 6 years and 7 months, this fund has demonstrated its ability to deliver strong returns.

Wallfort PMS’s Diversified Fund

The second PMS to have doubled the investors’ wealth is the Diversified Fund from Wallfort PMS and Advisory Services. This mid-cap fund has generated a return of 107.73% and has an AUM of Rs 62.46 crore. As of July 2024, the total AUM for Wallfort PMS was Rs 328 crore. The Diversified Fund has been in operation for 5 years and 8 months.

Invasset Growth Pro Max PMS

The third PMS approach to double investors’ wealth in a year is Invasset Growth Pro Max PMS, a multi-cap fund with a return of 103.68%. The fund’s top five holdings account for 38.82% of the portfolio. With an average age of 4 years and 6 months, Invasset Growth Pro Max PMS has a total AUM of Rs 474.55 crore.

Takeaway

While there's no guaranteed investment strategy, staying invested over the long-term leads to wealth accumulation and wealth creation. While fund managers actively buy and sell stocks, they also hold onto high-quality companies for extended periods to capitalise on superior returns. 

For more information on PMS approaches and fund managers, please visit the PMS Bazaar website. Remember, this information is for educational purposes only. Consult a financial advisor before making any investment decisions.