Nearly 100% of PMS schemes deliver positive return to rich investors in July

Majority of portfolio managers for high-net-worth (HNI) investors managed to outpace the benchmark equity indices in July when the BSE Sensex and NSE Nifty advanced over 8.50 per cent. The broader BSE 500 index rallied 9.54 per cent during the same period.

Data collated by PMS Bazaar showed that PMS schemes like Lake Water Advisors’ multicap strategy Lake Water gained the most 17.43 per cent in July. It was followed by Hem Securities’ smallcap strategy India Rising SME Stars (up 17.04 per cent) and Purnartha Investment Advisers’ multicap strategy Long Term Equity With Concentrated (up 16.65 per cent) and Unique Asset Management’s flexicap strategy Focused Fund (up 16.59 per cent).

According to market watchers, positive global cues and buying by foreign institutional investors supported the domestic equity market. Sentiment buoyed further across the global markets after Fed states that it will slow the pace of rate increases at some point to assess the impact of higher rates on the economy and inflation.

Data further highlighted that ASK Investment Managers’ Financial Opportunities, Abans Investment Managers’ Smart Beta Portfolio, Marcellus’ Consistent Compounders, ICICI Prudential’s Value Strategy, Alfaccurate Advisors’ AAA Focus Plan, Marcellus’ Kings of Capital, Ambit’s Coffee Can, Molecule Ventures LLP’s Growth, Right Horizons’ Alphabots India Prime, White Whale Partners’ North Star Portfolio and ASK Investment Managers’ India Select Portfolio also gained between 13 per cent and  17 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. Overall, the data showed that nearly 100 per cent of schemes managed by PMSes gave a positive return to investors in July. However, ORO Asset Management's large & midcap strategy All Weather Portfolio declined 1.49 per cent last month. It was the sole loser in the list of 281 schemes, as per data provided by PMS Bazaar.

Commenting on the domestic equity market amid the ongoing uncertainties, Sushant Bhansali, CEO, Ambit Asset Management, said, “Companies with leaner balance sheets and better cash flow cycles will not only be able to survive but thrive and gain market share further, clear dispersion will be witnessed going forward.” He further added that factors like credit growth, crude oil movement, centre spending, private capex and global inflation will give direction to the market going forward.

Among other major gainers, Purnartha Investment’s Focused Equity, ASK Investment Managers’ Growth Portfolio, Right Horizons’ Perennial, Varanium Capital Advisors’ Large Cap Focused Fund, ICICI Pru’s Contra Strategy, Spark Fund Managers’ India @75 Core & Satellite, ASK Investment Managers’ Indian Entrepreneur, Renaissance Midcap Portfolio, Emkay Investment Managers’ Pearls and Ambit’s Good & Clean also gained between 12 per cent-13.50 per cent.

Bhansali said, “Good & Clean framework helps to keep appropriate accounting and quality checks for mid-caps and small caps within the portfolio to avoid risks.”

Considering the present market condition, Amisha Vora, Joint MD, Prabhudas Lilladher said, “Investors should focus on sectors like automobiles, banks, telecom, IT, capital goods and hospitals, among others.”