May month saw a dip in the monthly returns of PMS schemes due to the war-induced supply shocks and inflation-induced Fed rate hikes. Only 40 of the 270 PMS equity schemes in the PMS Bazaar radar outperformed NIFTY and just one equity scheme out of them produced a positive monthly return in May 2022.
Top 10 PMS strategies of May 2022:
Here are the top 10 PMS strategies identified from the 270 equity strategies monitored & analyzed by PMS Bazaar.
*Note: All the returns mentioned in this report are based on the 270 PMS equity schemes monitored by PMS Bazaar.
The Portfolio Return Optimiser Strategy of Agreya Capital Advisors LLP tops the list, yielding a monthly return of 1.79% in May 2022. This strategy aims to enhance the returns of underlying equity and debt holding by investing in derivatives for capturing short-term trends in the equity market indices.
The BOP Strategy of MOTILAL OSWAL AMC occupies second place, yielding a monthly return of -0.50% in May 2022. This strategy aims to predominantly invest in Small and Midcap stocks with a focus on identifying potential winners.
The Core Value Strategy - Concentrated of O3 Securities Private Limited occupies 3rd place, yielding a monthly return of -0.57% in May 2022. This strategy aims to achieve capital appreciation through investment in a diversified portfolio of strong businesses, purchased at a reasonable valuation.
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Here is a chart depicting the monthly returns of top-performing equity PMSes in comparison with the NIFTY index for the month of May 2022:
Category-wise analysis of Portfolio management services:
Here is a comparison of average returns of different categories of PMS strategies for the month of May 2022:
Let us look in-depth into each category and identify the top 3 performers in each segment.
The Small-cap category recorded an average monthly return of -7.24% in May 2022. 9 out of 15 PMS strategies monitored in this category outperformed BSE Small cap, which stood at -7.83%.
The Micro Strategy of Centrum PMS tops this category, yielding a monthly return of -3.91%. Followed by it, we have the Little Champs Strategy of Marcellus (-4.55%) and the Small Cap Strategy of NAFA Asset Managers (-4.55%), constituting the top 3 performers in this category.
Small & Midcap:
The small & mid-cap category yielded an average monthly return of -7.03% in May 2022.
The Mid-cap category recorded an average monthly return of -6.59% in May 2022. 8 out of 21 PMS strategies monitored in this category outperformed NIFTY MIDCAP 100, which stood at -5.33%.
Over 250 PMSes beat Nifty in July
With 97% schemes out-performing the benchmark, focus turning on smallcap strategies that have done exceedingly well
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.
Sustainable Returns Through Sector and Stock Rotation
“Sector rotation as a strategy is core to us. I have been a big follower of sector rotation whether it is at IFL or Quest and I believe that this is something which has gone through the different cycles of the market whether it is 8 or 10 years and practically it has seen the various ups and downs”, says Aniruddha Sarkar, CIO and Portfolio Manager, Quest Investment Advisors
How IDFC NEO AI model is redefining investing, portfolio management
The concept of AI was initiated in the 1950s, and the world has started to see how powerful and useful AI is when used appropriately. The advent of modern AI is often compared to the industrial revolution of the 1750s to 1850s, where the world took a quantum leap. Did You Know? You have been using AI based applications multiple times a day . Today, we carry smartphones, laptops, fitness trackers, and use food and travel apps. And all these applications generate data. A study conducted in 2016 suggested that globally, in every eight months, we are doubling the amount of data on the planet. It is not possible for human beings alone to collect and process large amounts of data to make reliable investing decisions. This is where AI or machine learning driven investment models come in. Who can explain this better than a data scientist with about two decades of experience in quantitative analysis and in building trading models! Meet Dr Chetan Mehra, Head – Quantitative Investments, IDFC AMC. In a special webinar organized by PMS Bazaar, 'Data, Portfolio Manager & Machine - The IDFC NEO Equity PMS Strategy' Dr Mehra shares his widom on the world of AI models and investing.
Achieving Long-Term Capital Appreciation Through PMS
A capital growth strategy aims to optimize the long-term capital appreciation of an investment portfolio by allocating assets to securities with high expected returns. Today, Indian fund houses are upbeat about the growth of the manufacturing sector, hence they are looking at investments in growth-oriented manufacturing sectors that will generate high returns. In this blog, we shall discuss Emkay Investment Managers’ latest strategy on India’s manufacturing sector, how the sector has been rebounding, and factors that have been contributing to the rebound and growth of the manufacturing sector.
Deep dive into top holdings of PMSes
Read on to know Who Owns What, Which Sector Is Hot/Cold, Cash & Portfolio Changes
Is Cash The King For Portfolio Management Services ?
Out of the 144 PMS strategies that disclosed cash, 47 have between 5% & 10% while 5 strategies are completely invested i.e. zero cash as on May 2020. In this article, we will look at, among other things, how strategies are placed with cash, changes in cash positions, and also put the spotlight on those who display extreme positions in terms of cash holdings as % of assets.
The Scary Side of Super Quality Stocks Hiding in Plain Sight
Selling an investment idea is all about narratives and it is easy to push across an idea that is in currency. When you buy the wrong narrative, you end up making an investment mistake and these are the investment mistakes to avoid.