Over 50% of PMS schemes outperform Nifty50 in September; small & midcaps among top performers

September saw Nifty50 breaking into 17000 and heading towards 18000 but witnessed some volatility towards the close of the month.

The Nifty50 index rose 2.8 percent in September, but there are 140 Portfolio Management Schemes (PMSes) that outperformed the index in the same period, data from PMSBazaar.com 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.

Data from PMSBazaar.com shows that 140 out of 261 PMSes, which declared their monthly return, outperformed the Nifty in September and most of them were from the small and multi-cap segments.

Green Portfolio Dividend Yields Fund was among the top funds which clocked nearly 10 percent return in September compared to about 3 percent gain seen in the Nifty50, data from PMSBazaar.com shows.

The strategy invests in companies that have high growth, along with dividend yields which provide an opportunity to generate capital appreciation with the rise in dividend income.

This strategy is a multi-cap strategy but with an inclination towards midcaps. Companies in this portfolio perform well in a low-interest rate environment, said the company website.

Bellwether Capital Private Limited, Long Term Growth fund, a multi-cap theme, which has an asset under management (AUM) of Rs 1672 cr gave returns of 9.2 percent.

It was followed by Arihant AMC, Electrum Midsmallcap, a small & midcap fund that rose a little over 9 percent. Karma Capital’s Long Only India Public Equity Fund gave a 9 percent return in September.

The investment objective of the strategy is to achieve long-term capital appreciation by investing with patience and discipline in the Indian capital markets.

Underperformers:

There are 10 PMSes that gave negative returns in September compared to 2.8 percent gains seen in the Nifty50.

Sectors which failed to deliver returns were mostly Thematic, sectoral, largecap, and multicap schemes.

Incred PMS which maintains a thematic healthcare portfolio fell 1.3 percent in September, followed by Kotak Pharma fund which was down 1.2 percent, and Trivantage Capital Management was down 1.03 percent.