61% of PMS schemes deliver positive returns to investors in November. Here are the top 10 schemes

Nearly 61% of portfolio management schemes (PMS) kept their heads above the water in November, when the benchmark equity index declined marginally 0.31%. The Nifty Smallcap 250 index fell 0.19%, while the Nifty Midcap 150 index gained 0.14% during the same period. Market watchers believe that selling by foreign institutional investors and weaker-than-expected Q2 results kept the market volatile in the recent past.

With a gain of 8.54%, Valcreate Investment Managers LLP’s IME Digital Disruption strategy emerged as the top gainer on the list, per data collated by PMS Bazaar. It was followed by Narnolia Financial Services’ Fusion Opportunity (up 8.46%) and InCred Asset Management’s Incred Focused Healthcare (up 7.58%).

Data available with PMS Bazaar showed that Valcreate Investment Managers LLP’s IME Digital Disruption strategy holds stocks such as PB Fintech, Zomato, One97 Communications, FSN E-Commerce Ventures and Info Edge, among others. The strategy invests in digitally native platforms that have built their dominance through network effects and have potential for high growth for extended period by addressing large addressable markets.

In an earlier interaction with Business Today, Ashi Anand, CIO, Valcreate IME Strategies, said that when the strategy was launched, there was a high level of disbelief and pessimism due to the high losses these companies were operating at.

“Our detailed research of companies like Zomato and Policybazaar showed a clear path to profitability, as these companies moved into a monetisation phase since our launch, our thesis that the profitability of listed digital platforms will improve at a pace that will surprise market participants,” Anand said.

On the other hand, InCred Asset Management’s Incred Focused Healthcare invests in healthcare segment including pharmaceuticals, hospitals, diagnostic, and insurance to capture the growing demand for healthcare driven by rising incomes, increasing awareness, and ability to spend more on health and increased export opportunities.

Data further highlighted that Thinqwise Wealth Managers LLP’s India Long Term Fund, Incred Asset Management’s Healthcare Portfolio, Right Horizons’ Super Value Aggressive and CapGrow Capital Advisors LLP’s Special Situations also gained 6.58%, 5.88%, 5.84%, and 5.78%, respectively, in November.

Carnelian Asset Management and Advisors’ Shift Strategy, Wallfort PMS, and Advisory Services and Right Horizons’ Perennial strategies also gained more than 5% last month. Carnelian Asset Management and Advisors’ Shift Strategy holds stocks like Laurus Labs, SRF, The Anup Engineering, Hyundai Motor India and Syngene International.

With rising number of HNIs in the country, PMS Bazaar recently projected that assets managed by the Indian alternative investment industry, comprising portfolio management services and alternative investment funds may cross Rs 100-lakh crore mark by 2030.

Naveen Kulkarni, CIO, EVP, Axis Securities says “The traditional equities industry, dominated by mutual funds, is experiencing a significant shift towards alternative investment structures such as PMS and AIF. These alternatives are gaining traction due to their potential for better risk-adjusted returns, especially in the post-COVID landscape. Projections suggest that it could see a 3-4x increase in the coming years. This trend underscores that alternatives are not just the future—they are rapidly becoming the present.”