Moneycontrol PRO
UPCOMING EVENT:Register Now! Special webinar on Benefits of investing in US market at 4 pm on 10th December, 2021

22 stocks from top 5 PMS schemes that outperformed Nifty in October

Many portfolio management service (PMS) schemes from the broader markets outperformed the key indices. As many as 130 generated better returns than the Nifty 50. Here’s a look at some of their main stock holdings

November 16, 2021 / 11:01 AM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Stock market indices globally touched new highs in the wake of easy money availability after the COVID-19 pandemic last year. The Nifty 50 index on the National Stock Exchange (NSE) climbed to a record 18,604.45 on October 19, 2021, before a decline started, ending the month with a meagre 0.3 percent gain.

However, many portfolio management service (PMS) schemes from the broader markets outperformed the indices last month.

The Indian stock markets moved in tandem with the Asian markets and lost some of their sheen. Domestic institutional investors (DIIs) turned net sellers in October for the first time since March this year.

“Optimism on Indian bourses also dampened with several international brokerages downgrading their outlook on Indian equities citing unfavourable risk-reward ratios,” said Shrikant Chauhan, head of equity research (retail), at Kotak Securities.

The broader sentiment continues to be directionless as retail investors and foreign institutional investors (FIIs) and DIIs turned prudent over better asset class opportunities than equities in India and globally, he added.

Close

Both the Nifty 50 and the Nifty Midcap 100 were up 0.3 percent in October. The BSE Sensex added 0.31 percent, the BSE LargeCap index was up 0.34 percent, the BSE MidCap index was up 0.1 percent and the BSE SmallCap index was down 0.4 percent.

PMS schemes cater to wealthy investors with portfolio sizes exceeding Rs 50 lakh. Their professional fee structure is different from regular mutual funds and they invest in quality businesses and companies through Indian equities with an objective to grow wealth over the long term.

Of 275 PMS schemes tracked by pmsbazaar.com in October, as many as 130 generated better returns than the Nifty 50, the data shows.

Six of these schemes generated returns of more than 5 percent in October, led by Basant Maheshwari Wealth Advisors – Equity Fund (+10.31 percent), Renaissance – Opportunities Portfolio (+8.05 percent), Agreya Capital Advisors LLP – Exposure Equity Index Strategy (+5.62 percent), Fort Capital Investment Advisory Pvt Ltd – Value Fund (+5.59 percent), Invesco – Caterpillar (+5.57 percent) and Agreya Capital Advisors LLP – Index Multiplier (5.15 percent).

However, not all of these top schemes disclosed their stock holdings for October. Moneycontrol has collated a list of the top 5 from among those that have disclosed their holdings.

This list of holdings may give investors an idea about which stocks the fund managers of these schemes betted on. But they should not be considered ‘buy’ recommendations as fund managers have their own investment strategies.

 

PMS 1511_001

Renaissance - Opportunities Portfolio

Invests primarily in large cap stocks and generated returns of 8.05 percent in October. Its top 5 holdings are Aditya Birla Fashion & RetailICICI BankBharti AirtelInox Leisure and Sun Pharmaceutical Industries.

Invesco – Caterpillar

A mid-cap focused scheme, it earned 5.57 percent returns in October. Its top 5 stocks are Tata ElxsiTeamLease ServicesBalkrishna Industries, IRCTC and Sundaram Fasteners.

Sundaram Alternates – Rising Stars

The focus on small caps generated 4.50 percent growth for its investors. It has Tata ElxsiKSB, Navin Fluorine International and Greenpanel Industries as its main stocks. It also has cash and equivalents that aided in this growth.

Sundaram Alternates – Pace

It has a multi-cap focused strategy and generated 3.82 percent growth by investing in stocks of MindtreeAU Small Finance BankBajaj FinservICICI Bank and PI Industries.

Invesco – Dawn

A multi-cap scheme has its top holdings in ICICI Bank, InfosysTech MahindraReliance Industries and Ultratech Cements.

Way forward for investors

Given that most of the quarterly results and the festive season is behind us, the stock indices are expected to move sideways in the near term, experts said.

“The rich valuations of the Indian market after the sharp re-rating in the multiples of most stocks from their pre-pandemic levels raise the prospects of a pullback in the market and/or modest returns for a ‘longish’ period of time,” said Chauhan of Kotak.

He recommends investments in large-cap stocks in banking, consumption, infrastructure, real estate and IT.

Amit Gupta, fund manager – PMS, ICICI Securities, has a different view. “The broader market will have higher possibility to perform as many vendor companies’ shares are going to increase in many niche segments,” he said.

Metals, banking, telecom, construction, IT and select consumer discretionary stocks that have posted good volume growth are expected to be benefitted, he added.

“Multi-cap as a category of mutual fund schemes is one of the best categories to participate for a normal investor,” said Deepak Jasani, head of retail research at HDFC Securities.

For investors who can assume higher risks, small-cap and midcap schemes remain a choice, while for conservative investors, large-cap schemes are considered ideal.

“Any investor should have a mix of multi-cap (large allocation) and mid-cap/small-cap schemes (smaller allocation) to have a good mix of returns and risk assumption,” added Jasani.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before making any investment decisions.
Gaurav Sharma
first published: Nov 16, 2021 07:25 am

stay updated

Get Daily News on your Browser
Sections
ISO 27001 - BSI Assurance Mark