In a year when Indian equity markets delivered around 8 per cent returns, despite witnessing volatile trading, schemes from the portfolio management service (PMS) industry managed to deliver up to 70 per cent returns by betting on thematic and diversified strategies.
PMS is a tailored investment service for managing portfolios of clients by fund managers. These services are designed for High Net Worth Individuals (HNIs) and Ultra High Net Worth Individuals (UHNIs) with a minimum investment of Rs 50 lakh.
Investments into PMSes have also grown steadily over the past one year and assets under management (AUM) of the industry has grown by 20 per cent year-on-year to Rs 36.23 lakh crore as of October 31, 2024. To put things in perspective, the AUM of the mutual fund industry stood at Rs 67.25 lakh crore as of end-October 2024.
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In comparison, the AUM of the PMS industry stood at Rs 18.22 lakh crore at the end of October 2019.
Meet the top performers
Data available with PMS Bazaar showed that out of more than 400 funds, two gave more than 70 per cent returns over the past one year.
Incred Focussed Healthcare (AUM of Rs 43 crore) from InCred Asset Management has given 70.6 per cent returns on a one-year period. Stallion Asset’s Core Fund (AUM of Rs 3,815 crore) was a close second at 70.5 per cent returns on a one-year basis. The returns are as on November 30, 2024.
Data also showed that funds investing across market capitalisations such as multi-cap and flexi-cap funds feature prominently among the top 20 PMS strategies in the past one year. Small-cap and mid-cap schemes have also given among the highest returns over the past one year.
In terms of thematic names, healthcare, ESG (environment, social, governance) and digital based themes were the top performing funds.
How big schemes fared
The biggest PMS fund — Blended Rangoli offered by Unifi Capital — with an AUM of Rs 15,833 crore has delivered 19.6 per cent returns over the past one year. Blended Rangoli follows a flexi-cap approach, which invests across large-cap, mid-cap and small-cap stocks.
Unifi Capital, which was set up in 2001 as a registered portfolio manager, recently received the final approval from the Securities and Exchange Board of India (SEBI) to start its mutual fund operations.
Another big fund, ASK Indian Entrepreneur Portfolio offered by ASK Investment Managers, which has an AUM of Rs 15,004 crore as of end-November, yielded 13.8 per cent returns over the past one year.
Next, ICICI Prudential AMC’s Contra Strategy (AUM of Rs 9,731 crore) delivered 31.1 per cent returns on a one-year basis, while Abakkus Asset Manager’s All Cap Approach (AUM Rs 7,309 crore) is up 22.1 per cent.
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Among the biggest PMS schemes diversified strategies and small-cap funds featured prominently.
Diversified strategies
Multi-cap funds are among other most offered strategies in the PMS industry with more than 170 schemes on offer.
Data shows that Stallion Asset’s Core Fund was the top performing scheme in the category, followed by Quest Investment Advisors’ Multi with 52.68 per cent returns. Moat Financial Services’ UpperCrust Wealth Fund delivered 50.33 per cent returns over the one-year period, while Ambit Global Private Client’s Alpha Growth is 50 per cent since November last year.
When it comes to flexi-cap funds, Investsavvy Portfolio Management’s Alpha Fund was up 58.99 per cent on a one-year basis. Turtle Wealth Management’s Mantra has delivered 54.63 returns and Wryght Research and Capital’s Factor Fund is up 47.55 per cent.
Market-cap funds
Data shows that among schemes based on market capitalisations, funds from small and mid-cap stocks category delivered highest returns. It was followed by small-cap stocks-based funds. Large-cap funds had the lowest returns among all the funds based on market capitalisations.
Data shows that on a one-year period, Nifty Small-cap 250 Total Return Index (TRI) is up 29.08 per cent, while Nifty Midcap 150 TRI has gained 26.78 per cent. Large-cap Nifty 50 TRI is up 11.79 per cent on a one-year basis, while broad-based Nifty 500 TRI has risen 18.22 per cent on a one-year basis.
Debt PMS strategies
In a year when equity funds have delivered stellar returns, some debt PMS strategies performed well.
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Maximal Capital's Income Fund has delivered 26.5 per cent returns on a one-year basis till November 30, 2024, as per PMS Bazaar data. Further, Pace Financial Investment Adviser's Tresor Secure gained 18.1 per cent, while Phillip Capital India's Income Builder Portfolio has delivered 16.1 per cent returns on a one-year basis.
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