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PMS funds run by Prashant Khemka, Mukherjea get most inflows in past year

Investors seem to have rewarded better-performing funds. Assets managed by Molecule Ventures’ Growth Portfolio jumped to Rs 144.58 crore from Rs 8.25 crore in July 2021 after returning 21.4 percent returns in the period and getting Rs 105.33 crore from investors

August 24, 2022 / 06:15 PM IST
(Representational image: Chris Briggs via Unsplash)

(Representational image: Chris Briggs via Unsplash)

The bigger names in portfolio management services (PMS) have no problem getting additional funds from investors even if they don’t perform, an analysis of assets under management showed.

White Oak Capital Management’s India Pioneers Equity Portfolio received Rs 3,234.56 crore, adding 71 percent to assets under management, in one year (August 2021 to July 2022). White Oak Capital was founded by former Goldman Sachs fund manager Prashant Khemka.

However, the PMS fund’s returns were flat over the past year. Its top holdings include ICICI Bank, HDFC Bank, Infosys, Nestle India and Cholamandalam Investment, according to data available with PMS Bazaar.

Unifi Capital’s Blended Rangoli portfolio and Marcellus’ Consistent Compounders portfolio received investments of Rs 2,287.54 crore and Rs 2,051.47 crore, respectively, in the past year. They returned 3 percent and 1 percent, respectively, in the same period.

PMS charts


The former’s strategy is to focus on midcap stocks, while the latter’s popularity stems from the presence of Saurabh Mukherjea, the founder and chief investment officer of Marcellus Investment Managers, who is widely followed by stock pickers.

PMS funds are different from mutual funds and are more suited to rich investors with the minimum investment being Rs 50 lakh. They also have more flexibility in how they utilise the money.

ASK Investments’ Indian Entrepreneurship portfolio–the largest PMS fund in the country with assets of Rs 18,400 crore–received additional investments of Rs 1,776.76 crore.

It was followed by Sunil Singhania-led Abakkus All Cap Approach, which got Rs 1,298.91 crore in investments—a more than seven-fold jump in its corpus. Both funds have not delivered eye-catching returns in the past year.

PMS charts2

In percentage terms, investors seem to have rewarded the better-performing funds. Molecule Ventures’ Growth Portfolio’s assets jumped to Rs 144.58 crore from Rs 8.25 crore in July 2021 while generating 21.44 percent returns in the period and getting Rs 105.33 crore from investors.

Also read | Here's how Saurabh Mukherjea, Samir Arora & other PMS fund managers performed in July

Counter Cyclical’s Diversified Long Term Value portfolio delivered 34 percent returns in one year and received Rs 117.16 crore in fresh investments, inflating its assets to Rs 203.26 crore from Rs 16.69 crore.

PMS charts3

On the other hand, investor response to the worst-performing funds has been mixed. The top two laggards–Upside AI Flexicap and Incred Healthcare portfolios–attracted fresh investments even though they bled money.

Motilal Oswal’s IOP (India Opportunity Portfolio) and IOP V2 faced withdrawals that were consistent with their poor performance. Motilal’s NTDOP, which is the second-largest PMS fund in India, had massive withdrawals–about 10 percent of assets under management–even as it performed in line with peers.

Disclaimer: This article is for the purpose of information and not investment advice. Please consult a financial adviser before making any investment. 
Shubham Raj is a journalist with over five years of experience covering capital markets. His last stint was with The Economic Times where he wrote on daily happenings in stock markets and led IPO reportage. He also wrote on mutual funds and cryptocurrencies.
first published: Aug 24, 2022 06:15 pm
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