One in three Portfolio Management schemes (PMSs) managed to outperform benchmark indices in volatile January when both Sensex, and Nifty50 scummed to selling pressure amid weak global cues.

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Even though small & midcap stocks underperformed benchmark indices in January but fund managers running scheme with a small & midcap as a central theme gave positive results, data from PMS Bazaar showed.

Indian market closed with a negative bias in January in the run up to Union Budget 2022. The fall can be attributed to selling by foreign investors, rise in crude oil prices, as well as uncertainty around the outcome of the US Fed policy meeting as well as future commentary on rates.

The Nifty50 fell 0.09 per cent while the S&P BSE Sensex was down by 0.41 per cent in January while mid & small cap index underperformed in the same period.

The S&P BSE Mid-cap index fell 1.4 per cent, and the S&P BSE Small-cap index was down 0.78 per cent in the same period.  

As many as 33 per cent or 88 schemes out of 268 which have declared their monthly numbers for January gave positive returns, data from PMS Bazaar showed.

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Portfolio management services or PMS cater to high-net-worth investors and the professional fee charged by them is higher than regular mutual funds.

However, it varies from scheme to scheme. As per SEBI norms, a PMS account can be opened and held, with a minimum corpus of Rs 50 lakhs.

The broader market indices underperformed but at least 7 out of the top 10 schemes which gave more than 5 per cent return in January are from the small & midcap space.

ValueQuest Investment Advisor’s Platinum strategy which is a multicap theme gave 9.7 per cent returns in January. With over 2 decades of experience, Ravindra Dharamshi manages two multicap schemes.

The portfolio strategy is revolved around making a core portfolio that will be complemented with young, new to the market, turnaround stocks & special situation opportunities. The investment time frame will be rolling 1-3 years.

Spark Fund Manager Cor and Satellite Fund rose over 6 per cent, followed by Green Portfolio’s MNC Advantage and Super 30 strategy funds which are both thematic funds.

The MNC Advantage strategy aims at investing in growing MNC companies which are available at a reasonable valuation. The companies selected usually have moats of having a strong global presence and access to global business.

Super 30 strategy is to provide a high reward but with a higher than usual risk. The businesses chosen in this fund are turnarounds that lead to a spike in performance due to a special situation forming such as a change in key management, M&A, deleveraging, etc. Time horizon 3 years.

Underperformers:

There are 180 PMSes out of 268 schemes gave negative returns in January compared to 0.09 per cent fall seen in the Nifty50.

Alder Capital’s B2C Growth strategy fell more than 11 per cent in January, PMSBazaar data showed. It is a multi-cap strategy that invests in listed consumption B2C businesses that are scalable, have a competitive advantage, and demonstrate management culture.

Stallion Asset’s Core Fund delivered more than 9 per cent, followed by Shepherd Hill Financial Advisors LLP Value Magno which was down nearly 8 per cent, and Right Horizon’s Perennial strategy that was down over 7 per cent.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)