Almost 70 percent of portfolio management services (PMS) schemes have outperformed benchmark Nifty in the last 1 year. Nearly 180 schemes of the 254 PMS schemes have given an average of 26.6 percent returns as against a 19 percent rise in Nifty in the last 1 year.
Green Portfolio’s Super 30 has rallied the most, up 136 percent followed by Counter-Cyclical Investment’s Long Term Value, up 121 percent. Meanwhile, Right Horizon’s Minerva India Underserved has surged 91 percent, Care PMS' Growth Plus and Aequitas' India Opportunity Product have advanced 71 percent each, reveals the data from PMSBazaar.
Electrum's Laureate Portfolio, Bonanza's Edge, Negen Capital's Special Situations and Technology Fund, Green Lantern's Growth Fund, NJ AMC's Multicap Fund, and Roha's Emerging Champions Portfolio have also added over 50 percent each in the last 1 year.
PMS is an investment service where investors get the ability to tailor a portfolio as per their investment needs and financial targets. It offers investors control over the choice of portfolio they want. It is mostly an investment choice for big investors who have a large capital.
PMS offers greater flexibility to an investor for his money and better returns but at a higher risk too. Experienced portfolio managers manage the portfolio on behalf of a client and are backed by a quality research team.
Most funds that outperformed were more midcap and smallcap-focussed. Overall, large-cap PMS schemes have given an average return of 19.4 percent in the last 1 year while mid-cap schemes have given an average return of over 30 percent in this period while the same for small-caps schemes was over 40.5 percent.
The data further added that no scheme has given negative returns in this period.
The worst performing PMS schemes for the year included Alder Capital’s B2C Growth, up 0.14 percent, Marcellus Investment Managers’ Kings of Capital, up 3.2 percent, Fractal Capital Investments’ Wealth Builder, up 5 percent, NJ AMC's Dynamic ETF Allocation Portfolio Conservative Fund, up 5 percent. the data noted.
One must note that Returns were calculated on a time-weighted rate of return basis for the schemes under consideration.
The time-weighted rate of return eliminates the effects of inflows and withdrawals from the schemes to get a clearer sense of the fund manager’s performance.
According to the Securities and Exchange Board of India data, PMS schemes managed ₹19.7 lakh crore under the discretionary portfolio, ₹1.6 lakh crore under the non-discretionary portfolio, and ₹2.3 lakh crore under advisory.
An earlier report by Economic Times pointed out that Small and midcap heavy funds managed by Portfolio Management Services, have outperformed their peers in March who mainly invested in largecap stocks.
As per the report, the biggest gainer of the year was the Growth Plus Value Strategy of Care Portfolio Managers which delivered a 13.5 percent return. It was launched over 10 years ago and gives a higher weightage to lower valuation multiple, especially from smallcap companies.