Up to 24% returns! These PMS money managers for HNIs made money in July; here’s how

Select portfolio managers delivered robust alpha to their high-net-worth individuals (HNIs) in July, when the benchmark BSE Sensex gained 3.4%. On the other hand, broader indices--the BSE Midcap and BSE Smallcap--rallied 5.3% and 6.1% respectively. Meanwhile, the new government presented its first Union Budget on July 23, 2024.
 
Anticipation was high for some consumption-boosting initiatives, as the Government of India (GoI) received additional resources from the Reserve Bank of India (RBI). Nevertheless, akin to the Interim Budget of February 1, 2024 and the Union Budget of 2023, the government refrained from introducing any major schemes to stimulate consumption and instead focused on fiscal deficit consolidation.
 
Coming back to the top PMS schemes, Money Grow Asset’s Small Midcap strategy (up 24.40%) emerged as the top gainer in July. It was followed by Wallfort PMS and Advisory Services’ Diversified Fund (up 14.45%) and Wallfort PMS and Advisory Services’ Ameya Fund (up 13.10%).
 
Money Grow Asset’s Small Midcap strategy takes a private equity style bottom-up approach to identify under-the-radar companies and emerging sectors, in addition to balance sheet turnarounds to drive meaningful earnings growth and consequently re-rating, according to the PMS Bazaar portal.
 
Sharing its view on the market and broader markets, Motilal Oswal Financial Services in a report said, “With markets at a new high, the Budget further bolsters India’s strong macro-micro positioning amid a fragile world economy. The combination of 7% GDP growth and around 15% Nifty earnings CAGR in FY24-26, stable currency, moderating inflation and buoyant retail participation may keep sentiments strong. However, valuations appear fair for Nifty-50 and expensive for mid and small caps.”
 
Data collated by PMS Bazaar showed that Valcreate Investment Managers LLP’s Lifesciences and Specialty Opportunities (up 12.13%), Dynamic Equities’ PSU (up 12.04%) and Dynamic Equities’ Emerging (up 11.40%) stood among other major gainers on the list.
 
The objective of Valcreate Investment Managers LLP’s Lifesciences and Specialty Opportunities is to invest in businesses with competitive moats and sustainable medium-to-long-term growth potential at reasonable valuations. Sharda Cropchem, PI Industries, Sumitomo Chemical India, Divi’s Laboratories, and Dhanuka Agritech were among the major holdings of the strategy as of June 30.
 
With a gain of 11.07%, Kotak Mahindra Asset Management Company’s Pharma and Healthcare strategy emerged as the other major gainer. Asit C Mehta Investment Intermediates’ ACE-Midcap (up 10.62%), Equitree Capital Advisors’ Emerging Opportunities (up 10.61%), ithought Financial Consulting LLP’ VRDDHI (up 10.09%) and Composite Investments’ Emerging Star Fund (up10.03%) also managed to deliver a double-digit return to HNIs last month.
 
On being asked about the attractive pockets in this market, Harshad Borawake, Head of Research & Fund Manager, Mirae Asset Investment Managers (India) said, “We are overweight in private banks, pharma, consumer discretionary, and telecom.  However, the time to focus more on bottom-up approach and allocate more towards the stocks wherever the risk-reward is in favour.”