Within the PMS Bazaar universe, over 77% of PMSes outperform their respective benchmark in 10 years.
The Indian stock market has performed well over the past decade, despite periods of volatility. The Nifty 50 TRI and BSE 500 TRI indexes have delivered returns of 14.73% and 16.7% respectively over this period.
In this regard, the Portfolio Management Services (PMS) have delivered superior returns in the past 10 years (data as of Feb 29, 2024). Out of 53 PMS approaches that completed 10 years, within the PMS Bazaar universe, 41 outperformed, their benchmarks, the Nifty 50 TRI and BSE 500 TRI. The average return for these PMS approaches was 18.94%.
Interestingly, most of these top performers were multi-cap funds. This category offers diversification benefits and allows portfolio managers more flexibility in stock selection. And this flexibility has helped PMS managers generate returns for investors, even during volatile periods. It also indicates that long-term investing can be a successful wealth-creation strategy.
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