Majority of portfolio managers for HNIs failed in June; here’s how

More than 265 portfolio schemes for high-net-worth investors (HNIs) failed to deliver a positive return in June when the benchmark equity index BSE Sensex lost 4.58 per cent due to the ongoing selling pressure by foreign institutional investors (FIIs) and uncertainty over inflation.  The BSE Midcap and BSE Smallcap declined 6.18 per cent and 6 per cent, respectively, during the same period.

Data collated by PMS Bazaar showed that Basant Maheshwari Wealth Advisers Equity Fund, managed by well-known investor Basant Maheshwari, declined the most 13.63 per cent last month. The scheme has lost 20.97 per cent in the past 3 months and 16.31 per cent in 1 year. However, the strategy has delivered a 15.07 per cent CAGR return since its inception in February 2016.

In his letter to investors in June, Maheshwari advised investors that this is the time to pour money into the market if they have a long-term view. “We are getting these stocks because the immediate future ‘looks’ uncertain even though it might not be as uncertain as it looks. But this uncertainty will go away with time and prices will discount clarity and certainty. This is the best time to capture that transition by topping up your accounts,” he said. Maheshwari also thinks that many fast-growing companies are now available for better prices than what they were earlier.

Also read: Here’s how portfolio managers for HNIs struggled to make money in Feb

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.

Turtle Wealth’s 212* Growth Mantra is the next loser on the list. The strategy declined 10.78 per cent in June. However, it has gained a 25.21 per cent CAGR since its inception. The data further highlighted that Emkay Investment Managers’ Pearls, Systematix’s Dynamic Investment Portfolio, Upside AI’s Upside AI Flixicap, Sageone’s Core Portfolio and Hem Securities’s India Rising SME Stars declined between 9 per cent and 10.05 per cent last month.

Data showed that just six schemes managed to deliver a positive return to investors in June. With a gain of 2.84 per cent, Green Lantern Capital LLP’s Growth Fund emerged as the top gainer in June. It was followed by Equitree Capital Advisors’ Emerging Opportunities (up 1.6 per cent). Karvy Capital’s Excel and Demeter, Scient Capital’s Aries Mid Yield and Estee Advisors’ I-Alpha also gained between 0.16 per cent and 0.85 per cent.
 
Right Horizons’ Minerva India Underserved, which has gained 46.24 per cent in the past one year, declined marginally by 0.62 per cent last month. Likewise, Counter Cyclical Investment’s Diversified Long Term Value, which has advanced 45.14 per cent in the past 12 months, declined 1.40 per cent in June.

Among other portfolios, Saurabh Mukherjea's Marcellus Rising Giants and Little Champs dipped 6.60 per cent and 5.16 per cent, respectively, last month. Abakkus Asset Manager LLP’s Abakkus All Cap Approach and Abakkus Emerging Opportunities lost 7.30 per cent and 7.60 per cent, respectively. Market expert Sunil Singhania is the founder of Abakkus Asset Manager.

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

Also read: Top 30 PMS strategies that made big money for ultra-rich investors in 2021