Despite a subdued market environment, PMS strategies continued to deliver positive returns. Leadership remained concentrated in Thematic, Small Cap and Small & Midcap categories, underscoring the value of active management and focused portfolio positioning.

Following April's broad-based rally, equity PMS strategies navigated a more challenging market environment in May 2026. The Nifty 50 TRI declined 1.72 per cent, while the S&P BSE 500 TRI was relatively resilient, slipping just 0.17 per cent. Against this backdrop, PMS performance remained dispersed, underscoring the importance of active management. Of the 551 strategies tracked by PMS Bazaar, 478 were equity PMS strategies, with the top-performing strategy delivering a return of 16.66 per cent during the month.

The outperformance ratio remained strong despite the softer market environment. A total of 459 Equity PMS strategies, or 83.3 per cent of the tracked universe, outperformed the Nifty 50 TRI. Against the broader S&P BSE 500 TRI, 367 strategies, or 66.6 per cent, generated excess returns. The figures highlight the ability of active managers to navigate a consolidating market and deliver alpha despite benchmark weakness.

Top-10 performers in focus

The top-performing PMS strategies delivered strong alpha in May 2026. The top-10 equity PMS strategies generated an average return of 11.52 per cent, significantly ahead of the average equity PMS return of 1.78 per cent. This highlights the wide dispersion in returns and the ability of select managers to capitalize on stock-specific opportunities.

Leading the pack was Valcreate Investment Managers’ Recovery Strategy, which returned 16.66 per cent during the month. Amaltas Asset Management’s Keystone Fund followed with 14.11 per cent, while Tulsian PMS secured the third spot with a return of 12.11 per cent.

Beyond the top three, AlfAccurate Advisors' AAA Couture delivered 11.88 per cent, followed by Brightseeds Advisors' Xylem Maverick Strategy at 11.19 per cent, Green Portfolio's Super 30 Dynamic Fund at 10.57 per cent and InCred Asset Management's Focused Healthcare Portfolio at 10.18 per cent. Bharat Bhushan Equity Traders' BB Money Plant returned 9.81 per cent, NMR Capital Advisors' NMR Growth Strategy gained 9.79 per cent and Green Portfolio's Impact ESG Fund delivered 8.85 per cent, rounding out the top 10 performers for the month.

Overall, May's leaderboard showcased the ability of select PMS managers to generate double-digit returns despite a relatively muted market backdrop.

Category snapshot

Category performance in May 2026 reflected a more measured market environment, with returns across segments remaining positive but considerably lower than the previous month. Thematic strategies led the pack with returns of 2.42 per cent, followed by Small Cap at 2.14 per cent and Small & Midcap at 2.12 per cent. This suggests that investors continued to reward differentiated themes and higher-growth segments despite broader market consolidation.

Multicap & Flexicap strategies delivered 1.82 per cent, while Midcap and Large & Midcap strategies returned 1.78 per cent and 1.55 per cent, respectively, indicating relatively balanced performance across diversified equity mandates.

Largecap and multi-asset strategies trailed the category rankings, generating returns of 0.34 per cent and 1.15 per cent, respectively. Overall, May's category performance points to a selective market where alpha generation was driven more by stock selection and thematic positioning than by broad-based market momentum.

Small Cap PMSes Deliver Strong Alpha

Small Cap PMS strategies remained among the strongest-performing categories in May 2026 despite a softer market backdrop. Across 27 tracked schemes, the category delivered an average return of 2.14 per cent, comfortably outperforming both the S&P BSE 500 TRI, which declined 0.17 per cent, and the Nifty 50 TRI, which fell 1.72 per cent.

The breadth of outperformance remained impressive. As many as 19 of the 27 schemes outperformed the S&P BSE 500 TRI, while 26 schemes beat the Nifty 50 TRI, underscoring the category's resilience amid market consolidation.

Green Portfolio's Super 30 Dynamic Fund led the category with a return of 10.57 per cent, followed by NMR Capital Advisors' NMR Growth Strategy at 9.79 per cent and Alchemy Capital Management's Alpha Small Cap at 5.76 per cent.

The category's strong relative performance highlights the continued ability of small-cap focused managers to generate alpha through stock selection, even in a month marked by muted benchmark returns.

Thematic PMSes Lead Category Returns

Thematic PMS strategies emerged as the best-performing category in May 2026, delivering an average return of 2.42 per cent across 20 schemes. The category comfortably outperformed both the S&P BSE 500 TRI, which declined 0.17 per cent, and the Nifty 50 TRI, which fell 1.72 per cent during the month.

Performance breadth remained healthy, with 14 of the 20 schemes outperforming the S&P BSE 500 TRI and 18 schemes beating the Nifty 50 TRI. This indicates that thematic investing continued to generate alpha despite the market's subdued performance.

The category was led by InCred Asset Management's Focused Healthcare Portfolio, which returned 10.18 per cent during the month. Green Portfolio's Impact ESG Fund followed with a gain of 8.85 per cent, while InCred Asset Management's Healthcare Portfolio delivered 7.12 per cent.

Overall, thematic PMS strategies demonstrated strong relative performance in May, with healthcare and ESG-focused portfolios dominating the leaderboard and highlighting the importance of theme selection in a consolidating market.

Small & Midcap PMSes Deliver Strong Alpha

Small & Midcap PMS strategies continued to outperform in May 2026, generating an average return of 2.12 per cent across 59 schemes. The category comfortably exceeded both the S&P BSE 500 TRI, which declined 0.17 per cent, and the Nifty 50 TRI, which fell 1.72 per cent during the month.

The outperformance was broad-based, with 45 of 59 schemes beating the S&P BSE 500 TRI and 56 schemes outperforming the Nifty 50 TRI. This underscores the category's ability to generate alpha even in a relatively subdued market environment.

The category was led by AlfAccurate Advisors' AAA Couture strategy, which delivered 11.88 per cent in May. Brightseeds Advisors' Xylem Maverick Strategy followed with a return of 11.19 per cent, while Money Grow Asset's Small Midcap strategy gained 5.96 per cent.

Overall, Small & Midcap PMSes remained among the strongest-performing categories, with both category-wide and top-tier returns highlighting the benefits of active stock selection beyond the large-cap universe.

Midcap PMSes Deliver Broad-Based Outperformance

Midcap PMS strategies continued to generate positive returns in May 2026, with the category delivering an average return of 1.78 per cent across 23 schemes. This was comfortably ahead of both the S&P BSE 500 TRI, which declined 0.17 per cent, and the Nifty 50 TRI, which fell 1.72 per cent during the month.

The breadth of outperformance was particularly strong. As many as 20 of the 23 schemes outperformed the S&P BSE 500 TRI, while 22 schemes beat the Nifty 50 TRI, reflecting consistent alpha generation across the category.

The category was led by Sundaram Alternate Assets' SELF Portfolio, which returned 8.24 per cent during the month. Right Horizons' Super Value strategy followed with a gain of 6.92 per cent, while Nuvama Asset Management's Equities eXpansion Target delivered 3.35 per cent.

Midcap strategies continued to deliver broad benchmark-beating performance, supported by strong stock selection and disciplined portfolio construction.

Multicap & Flexicap PMSes Maintain Broad-Based Outperformance

Multicap & Flexicap PMS strategies delivered resilient performance in May 2026, with the category generating an average return of 1.82 per cent across 288 schemes. This was comfortably ahead of both the S&P BSE 500 TRI, which declined 0.17 per cent, and the Nifty 50 TRI, which fell 1.72 per cent during the month.

The breadth of outperformance remained particularly strong. As many as 281 of the 288 schemes outperformed the Nifty 50 TRI, while 225 schemes delivered returns ahead of the S&P BSE 500 TRI. The figures highlight the category's ability to generate consistent alpha across a large and diverse investment universe.

The category was led by Valcreate Investment Managers' Recovery Strategy, which returned 16.66 per cent in May. Amaltas Asset Management's Keystone Fund followed with a gain of 14.11 per cent, while Bharat Bhushan Equity Traders' BB Money Plant delivered 9.81 per cent.

While returns were more moderate than those seen during April's market rebound, Multicap & Flexicap PMSes continued to demonstrate strong breadth and benchmark-beating performance.

Large & Midcap PMSes Deliver Consistent Outperformance

Large & Midcap PMS strategies posted steady gains in May 2026, with the category delivering an average return of 1.55 per cent across 23 schemes. This was comfortably ahead of both the S&P BSE 500 TRI, which declined 0.17 per cent, and the Nifty 50 TRI, which fell 1.72 per cent during the month.

The breadth of outperformance was particularly impressive. As many as 22 of the 23 schemes outperformed the S&P BSE 500 TRI, while all 23 schemes generated returns ahead of the Nifty 50 TRI, highlighting the category's consistency in a challenging market environment.

The category was led by GSC Smart Core Portfolio, which returned 6.69 per cent during the month. Samvitti Capital's PMS Long Term Growth followed with a gain of 5.33 per cent, while Smart Alpha 250 delivered 2.87 per cent.

While the category did not produce the sharp gains seen in some higher-beta segments, its broad-based outperformance reflects the benefits of balanced exposure across large and mid-cap stocks and disciplined portfolio management.

Largecap PMSes Deliver Modest Gains

Largecap PMS strategies posted modest gains in May 2026, with the category delivering an average return of 0.34 per cent across 31 schemes. While returns were relatively muted, the category still outperformed both the S&P BSE 500 TRI, which declined 0.17 per cent, and the Nifty 50 TRI, which fell 1.72 per cent during the month.

The breadth of outperformance was healthy. A total of 17 of the 31 schemes outperformed the S&P BSE 500 TRI, while 27 schemes delivered returns ahead of the Nifty 50 TRI, reflecting the category's defensive resilience during a weaker market phase.

The category was led by Tulsian PMS, which generated a strong return of 12.11 per cent in May. Marcellus Investment Managers' Consistent Compounders strategy followed with a gain of 4.00 per cent, while Accuracap's Alpha10 delivered 3.60 per cent.

While Largecap PMSes lagged higher-growth categories such as Thematic, Small Cap and Small & Midcap, the category continued to provide stable benchmark-beating returns, supported by quality-focused portfolios and lower market sensitivity.

Multi-Asset PMSes Deliver Steady Outperformance

Multi-Asset PMS strategies generated positive returns in May 2026, with the category delivering an average return of 1.15 per cent across 43 schemes. The category outperformed both NSE Multi Asset Index 1 and  NSE Multi Asset Index 2, which returned 0.13 per cent and 0.10 per cent, respectively.

The breadth of outperformance was particularly strong, with 36 of the 43 schemes outperforming both multi-asset benchmarks. This highlights the category's ability to generate consistent returns despite a mixed market environment.

The category was led by Money Grow Asset's Bespoke strategy, which returned 5.70 per cent during the month. Dezerv Investments' Strategic Holdings in Natural Elements (SHINE) followed with a gain of 4.07 per cent, while Pluswealth Capital Management's PlusWealth Fusion delivered 3.31 per cent.

While multi-asset PMSes trailed the returns generated by leading equity-oriented categories such as Thematic, Small Cap and Small & Midcap, the category continued to demonstrate the benefits of diversification, delivering steady benchmark-beating performance with a moderated risk profile.

Despite a softer market backdrop, PMS strategies displayed remarkable resilience in May 2026. Strong benchmark-beating performance across categories and the emergence of several double-digit return strategies underscore the opportunities available to active managers. As market leadership becomes increasingly selective, differentiated research and disciplined execution continue to be key drivers of long-term wealth creation.