Investing can help you achieve your goals and smart investing can help ride through tough waters. Not entirely convinced with the statement?
Well, data suggests that majority of Dalal Street’s top money managers for high net worth individuals outperformed Nifty50 in August when the index gave a negative return of 0.8 percent.
Weak global backdrop and persistent selling by foreign investors has pulled down equity markets. But, structural steps unveiled by the union finance minister in the last two weeks of August, helped recoup some losses towards the end of the month.
The Nifty50 is up over 3 percent so far in 2019 and is down over 9 percent from its record high of 12,103 recorded back in June. The market has been in a downtrend since then, and a similar mood was also reflected in the returns from top Portfolio Management Services (PMS).
Portfolio Management Services cater to wealthy investors with portfolio sizes exceeding Rs 25 lakh. The professional fee charged by them is slightly higher than regular mutual funds (MFs). Portfolio Management Services gave up to 6 percent returns in August, reversing heavy losses in the previous three months, shows data collated by PMS Bazaar showed -- an online portal used for PMS comparison, investment and analytics.
Almost 40 schemes across largecaps, midcaps, and multicap category outperformed in August. In other words, those schemes generated alpha amid subdued sentiments in domestic and global markets.
Portfolio Management Services, like mutual funds, are an effective tool for investment. A PMS is a structure regulated by the Securities and Exchange Board of India (SEBI) and managed by an investment manager. All investments are through your demat account under a Power of Attorney (POA) of the investment manager.
Under the largecap category, data shows that the 10 best performing PMSes gave 0.14 percent to 6.3 percent return in August. We have considered all PMS schemes listed in the category.
Ambit Coffee CAN was the biggest earner with 6.3 percent, followed by Marcellus Consistent Compounders (5.8 percent) and Varanium Capital Advisors (3.3 percent).
Ambit Coffee CAN PMS invest in companies by focusing on the ability of a business to deliver consistently healthy growth and Return on Capital Employed (RoCE) over long time.
Marcellus Consistent Compounders, a largecap scheme, managed by Saurabh Mukherjea and Rakshit Ranjan, identify firms with high pricing power and are heavy moated companies that can drive healthy earnings growth over long periods.
Note: The table is for information only and not buy or sell ideas.
In the midcap space, as many as four PMSes bucked the trend. Sundaram AMC S E L F Portfolio gave 3.7 percent returns, followed by Ambit Capitals Good & Clean India Fund which rose 1.9 percent and Tata PMS Emerging Opportunities Fund gave a return of 1.55 percent in August.
Sundaram S.E.L.F strategy invests predominantly in midcap stocks and has a 3Q approach to stock selection i.e. quality of business, quality of management and quality of financials.
Ambit Capitals’ Good & Clean India Fund invests in high-quality midcap companies with good governance, clean accounting, and prudent capital allocation track record. The objective is to generate superior returns with lower drawdowns.
Note: The table is for information only and not buy or sell ideas.
In the multicap space, there are as many as 26 PMSes which outperformed Nifty in August which include names such as Whita Oak’s Ashoka India Pioneers Equity rose 4.9 percent, followed by Motilal Oswal’s BOP Fund which gave 4.8 percent return and Ask India Select Fund which gained 3.8 percent in the same period.
Motilal Oswal’s BOP Multicap Fund invests in high conviction concentrated portfolio of minimum 20 stocks. It invests across market capitalisations and focuses on consumer discretionary, private banks, non-bank financial company (NBFCs), agriculture, affordable housing and Goods and Sservices Tax (GST) beneficiaries.
Ask India Select Multicap fund focusses on capital preservation and capital appreciation over a period of time by long term investments in high quality and growth companies.
Note: Here is a list of 10 PMSes out of 26 which are filtered based on returns. The table is for information only and not buy or sell ideas.
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