No portfolio management services (PMS) schemes have given negative returns in the past 3 years, however, only 4 were able to beat the index during the period.
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 money and better returns but at a higher risk too. Experienced portfolio managers manage the portfolio on behalf of clients and are backed by a quality research team.
Since March 2020, the benchmark Nifty index has jumped around 55 percent as economies opened up post the COVID pandemic and demand resurfaced. Growth, as well as margins of firms, improved.
First Global India Super 50 surged the most in the last 3 years, over 99 percent, followed by Stallion Asset Core Fund, up 69.7 percent. Meanwhile, Helios Capital Management and MoneyLife Mass Growth advanced 66 percent each and WhiteOak India Pioneers Equity jumped 57 percent in this period.
It is important to note that all these funds, that outperformed benchmarks, are from the multi-cap space.
First Global India Super 50 has given a CAGR of 13.4 percent in the past 3 years and risen on a 22.5 percent CAGR since its inception.
Stallion Asset Core Fund, meanwhile, has given a CAGR of 19.2 percent in the past 3 years and has risen on a 20.5 percent CAGR since its inception.
MoneyLife Mass Growth and WhiteOak India Pioneers Equity have advanced at a CAGR of 23 percent and 14.8 percent, respectively, in the last 3 years. Since inception, they have given returns at a CAGR of 21.7 percent and 14.7 percent, respectively.
Data for Helios Capital Management was not available.
Meanwhile, nearly 80 percent of PMS schemes have given negative returns in the month of February. 251 of 315 schemes have been in the red in the month under review, as per data by PMS Bazaar.
Tulsian PMS fell the most, down nearly 12 percent in Feb. It has added 2.7 percent in the last 1 year.
Following Tulsian PMS, Hem Securities shed 10.6 percent in Feb and Basant Maheshwari Wealth Advisors declined 9.7 percent in this period. While Hem has surged 44 percent in the last one year, Basant has tanked over 21 percent.
Apart from these, Care PMS - Growth Plus Value, Agreya - Conc Value Discovery Strategy, Green Portfolio - Super 30 Dynamic, and Invasset - Growth Pro Max fell over 6 percent each in Feb.
Among top performers, Unique Strategic Fund and Vallum India Discovery gained the most in Feb, up 3.38 percent each.
Both these funds have advanced 22.9 percent and 8.6 percent, respectively, in the last 1 year, and at a CAGR of 34 percent and 25.4 percent, respectively, since inception.
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.