99% of PMS schemes made HNIs richer in April. Here are top-performing strategies

As many as 11 PMS schemes for high net worth investors (HNI) delivered a solid alpha in April when the benchmark equity index advanced 3.60 per cent during the month. Data available with PMSBazaar showed that Green Portfolio’s Super 30 Dynamic from the thematic category gained the most 17 per cent last month. The strategy has managed to give a 30.55 per cent annualised return to investors since its inception in September 2019. The benchmark BSE 500 Total Return index gained 4.59 per cent in April.  

While sharing his views on the recent outperformance of Super 30 scheme, Sreeram Ramdas, Vice President, Green Portfolio PMS told Business Today that the performance in April wasn’t a reflection of one or two stocks doing exceedingly well. “In fact, most of our top 10 holdings did exceptionally well during the month. Some of our stocks were unjustifiably beaten down due to macro headwinds and short-term negative sentiments. During April these stocks were quick to catch on to their fundamental value predicated by their business performance,” he said.

He further added that they look for turnaround stories or special situations. Once they identify an undervalued share, the portfolio management service deep dive into the reasoning and whether those reasons are justified, if this isn’t the case, they further study the share before building a position. “We believe ‘the more you know, the lesser the risk’,” he said.

“We are under-the-radar stock pickers. We identified most of the stocks in the Super 30 fund before any major institution or research house. Once these stocks become mainstream and analyst coverage increases, our investors are able to benefit from a sharp rally. All in all, this is a fundamental research-based strategy, there could be times when our performance remains flat, but our entire thesis is based on the belief that the stock will reflect its true fundamental value even if it takes a long time,” Ramdas said.

Negen Capital’s Special Situation & Technology Fund was next on the list. The multicap PMS strategy delivered 13.63 per cent in April. With a weightage of 8.70 per cent, Sapphire Foods India was the top holding of the scheme. Camlin Fine Sciences, Piramal Enterprises, Cholamandalam Investments and Finance and Piramal Pharma were among the other top picks of Negen Capital’s Special Situation scheme, data available with PMS AIF World showed.

A multicap strategy run by Basant Maheshwari Wealth Advisers’ Equity Fund (12.65 per cent) and a smallcap strategy by Equitree Capital Advisors’ Emerging Opportunities (12.43 per cent) stood among the other major gainers in the list. Overall, as much as 99 per cent of PMS schemes delivered positive return to HNIs last month. 

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

Hem Securities’ India Rising SME Stars, Invasset LLP’s Growth Pro Max Fund, Green Portfolio’ The Impact ESG Fund, Bonanza’s Aegis, Green Portfolio’ Dividend Yield, Lake Water Advisors’ India Growth and Bellwether Capital’s Long Term Growth also delivered a return of somewhere between 10 per cent and 12.50 per cent in April.

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