Bulls took control on D-Street in June with Nifty50 rallying as much as 7.5 percent during the month. More than 60 Portfolio Management Schemes (PMSes) that outperformed the index in the same period.
There are as many as 62 PMS schemes that saw gains of more than 8 percent in June outperforming the benchmark index, while 37 of them gave double-digit returns to the tune of 10-23 percent in the same period, data from PMSBazaar.com showed.
Most of the schemes that outperformed the index are from the small & midcap space. Top five funds, as well as the portfolio tracked by PMSBazaar.com, showed that Globe Capital Market’s Value Fund topped the list with returns of over 23 percent in June.
Other PMSes that posted double-digit returns include names like Nine Rivers Capital’s Aurum Small Cap Opportunities Fund, ASIT C Mehta’s Ace Multicap, Capgrow Capital Advisor’s Special Situations fund which is also a multi-cap fund, and Motilal Oswal’s IOP V2 fund which is a small & midcap fund.
Portfolio Management Services cater to wealthy investors and the professional fee charged by them is slightly higher than regular mutual funds (MFs). The minimum investment in a PMS scheme is Rs 50 lakh in India.
Experts are of the view that most of the small & midcaps are witnessing a catch-up rally after 2 years of underperformance and that is one of the reasons why the broader market space outperformed Nifty from March 24.
The S&P BSE Smallcap index has rallied by about 44 percent compared to 35 percent rally seen in the S&P BSE Midcap index. The S&P BSE Sensex has risen 37 percent while the Nifty50 is up 38 percent from March 24 lows.
"The next six months of 2020 likely to be 'Stagnant'. The market could go up 5-7% up or down but the main action will be in individual stocks," Satish Kumar, Head of Equities, Equirus Securities told Moneycontrol.
"There will be numerous stocks in the mid and small-cap universe which can double from here," he said.
There are as many as 24 unique stocks in the portfolio of top 5 PMS schemes that have outperformed Nifty50 in June, including some marquee names from the mid & small-cap segment that are top industry leaders.
Global Capital’s Value fund which focuses on companies across sectors with a view to secure steadfast long term returns navigating the investments through market ups and downs.
The top five holdings of the fund include names like Sterling & Wilson Solar, HDFC AMC, Sumitomo Chemicals, Strides Pharma, and Laurus Labs.
Nine Rivers Capital Aurum Small Cap opportunities fund is built out of 12-15 high conviction stock ideas with an investment horizon of 3-5 years for each stock. The top five stocks in the portfolio include names like Astra Microwave, Intellect Design, Poly Medicure, CDSL, and Alkyl Amines Chemicals Ltd.
Asit C Mehta’s ACE Multicap fund include stocks like Bharat Dynamics, L&T Infotech, Tata Elxsi, Birla Soft, and Hudco.
Capgrow Special Situations fund include stocks like Fortis Healthcare, Engineers India, Piramal Enterprises, Forbes & Company, and Raymond.
Motilal Oswal’s IOP V2 aims to deliver superior returns by participating in India investment and consumption growth story by investing in around 25 stocks.
Stocks under the IOP V2 scheme include names like RIL, Ipca Laboratories, L&T Infotech, Godrej Agrovet, and Bajaj Electricals.
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