These top 10 PMS schemes generated solid returns for investors in Q2; here’s how

As much as 99 per cent of portfolio management schemes managed to make money for their high networth clients during the second quarter of FY24. The benchmark equity index BSE Sensex gained just 1.71 per cent to 65,828.41 on September 30, from 64,718.56 on June 30. On the other hand, the broader BSE MidCap and BSE SmallCap indices gained 12.39 per cent and 15.21 per cent, respectively, during Q2FY24. 

With a gain of 41.62 per cent, Invasset LLP’s Growth Pro Max Fund emerged as the top gainer in the list. It was followed by Aequitas Investment Consultancy’s India Opportunities Product (up 30.14 per cent) and Samvitti Capital’s PMS Active Alpha Multicap (up 27.50 per cent). 

While sharing the mantra of the outperformance of Growth Pro Max Fund, Anirudh Garg, Partner and Head of Research, Invasset, said it is a quant-based Portfolio Management Service (PMS) firm, where a quantitative algorithm entirely drives the decision-making process. 

Garg added that they follow four investment styles. Firstly, there’s value investing, involving the calculation of intrinsic value using discounted cash flow, and acquiring assets below this value with the intention of selling them above it. “Additionally, we place significant emphasis on special situations, change-based investing, and growth investing, predicated on the idea that each bull market introduces a new leader,” he said. 

The money manager also said their third investing style is commonly known as quality-focused investing, closely aligned with the strategies employed by legendary investors like Warren Buffett and Bharat Shah. “This approach involves the acquisition of assets with high Return on Capital (ROC), high Return on Equity (ROE), robust free cash flows, effective management, substantial market share, and a steadfast long-term commitment to their respective sectors,” he said, adding that the fourth style is pension fund investing, aimed at achieving returns surpassing those offered by fixed deposits. 

“At Invasset, we have amalgamated these four distinct investment styles,” Garg said in an interaction with Business Today last month. The last change they made in the portfolio was in November 2022. 

Commenting on Samvitti Capital’s PMS Active Alpha Multicap, Prabhakar Kudva, Director and Portfolio Manager, Samvitti Capital told Business Today last month that they worked on building models that help them identify sectors and businesses with significant earnings tailwinds. This includes sectors such as defence, PSU banks and power. 

Data collated by PMS Bazaar further highlighted that other PMS schemes including Badjate Stock & Shares’ Aggressive and Green Lantern Capital’s Growth Fund also gained over 25 per cent during Q2. 

Credent Asset Management’s Growth Portfolio (up 24.90 per cent), Investsavvy Portfolio Management LLP’s Alpha Fund (up 24.64 per cent), Maximal Capital’s Pathfinder Value Fund (up 23.70 per cent), Asit C Mehta Investment Intermediates’ Ace Midcap (up 23.36 per cent) and Ace Multicap schemes (22.89 per cent) also managed to get the place in the top 10 gainers in Q2FY24. 

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