33% of PMS schemes deliver positive returns to rich investors in January

Select portfolio managers for high net-worth individuals (HNIs) managed to deliver decent alpha in January when the domestic equity market was struggling to keep its head above water. The benchmark BSE Sensex declined 0.41 per cent to 58,014.17 on January 31, 2022 from 58,253.82 on December 31, 2021. On the other hand, the broader indices BSE Midcap and BSE Smallcap lost 1.43 per cent and 0.78 per cent, respectively.

Data available with PMS Bazaar showed that ValueQuest Investment Advisors' Platinum strategy delivered the maximum 9.73 per cent return to investors. It was followed by Spark Fund Managers' Core & Satellite strategy (up 6.44 per cent), Green Portfolio's MNC Advantage (up 6.31 per cent) and Green Portfolio's Super 30 (up 5.86 per cent).

Portfolio management services, or PMS, is an investment management service offered by qualified portfolio managers. The minimum ticket size for PMS investment is Rs 50 lakh in India.

January was characterised by extreme volatility, with the Sensex oscillating in a wide range (5,000 points) and pulling back significantly to close with marginal losses on a month-on-month basis.

The increase in volatility was led by weak global cues, with concerns around inflation and potential rate hikes sparking a risk-off globally, leading to elevated FII outflows from India. Overseas investors sold shares for the fourth consecutive month in January. Their net outflow stood at Rs 33,303 crore last month, the highest since March 2020.

The data further highlighted that ICICI Prudential's Value Strategy, Equitree Capital Advisors' Emerging Opportunities, Renaissance' Opportunities Portfolio, Renaissance' Midcap Portfolio, Bonanza's Value strategy and ICICI Prudential's Contra Strategy also gained between 5 per cent and 5.80 per cent last month.

Trivantage Capital Management's Resurgent Financials Equity (up 4.52 per cent), Roha Asset Managers' Long Term Value Investment (up 4.46 per cent), Aequitas Investment Consultancy's India Opportunities Products (up 4.35 per cent), Oaks Asset Management's ABC Equity Portfolio (up 4.30 per cent), ICICI Prudential's Pipe Strategy (up 4.10 per cent), Right Horizons' Alphabots India Prime (up 4.08 per cent) and Green Portfolio's Dividend Yield (up 4.08 per cent) were among other major gainers last month.  

Overall, one-third of portfolio schemes managed to deliver a positive return to investors last month, data collated by PMS Bazaar showed.

On the other hand, First Global's India Multi Asset and First Global's India Super 50 declined 1.65 per cent and 2.27 per cent, respectively during the month. Basant Maheshwari Wealth Adviser's Equity Fund and Abakkus Asset Managers LLP's Abakkus All Cap Fund lost 0.56 per cent and 0.60 per cent, respectively. Marathon Trends' Megatrends strategy slipped 5.80 per cent.

Among other major losers, Alder Capital's B2C Growth, Stallion Asset's Core Fund, Shepherd's Hill Financial Advisors LLP's Value Magno, Right Horizons' Perennial and Carnelian Asset Advisors' Shift Strategy retreated over 7 per cent last month.