MC PMS Flow Tracker: Here are the funds that saw biggest outflows in September
Big PMS funds tend to see higher outflow compared to smaller peers and September was no different. Relatively better performance of smaller PMS funds and profit-booking or migration of funds after a sharp rally in small and midcap segment abetted the ouflow
Portfolio management services (PMS) providers are money managers for the rich, promising alpha over other investments such as mutual funds. They tend to have unique investing methodologies, usually defined by the manager. A lot of money moves in and out of these funds, sometimes due to weakness in the market or profit booking. In the first part of a series tracing the flow of funds, here are some names with the highest outflow in September. The raw data was provided by PMS AIF World. We have considered only those funds that disclose their assets under management (AUM) and holdings.
2/10
As the name suggests, the fund seeks to invest in sectors and stocks that will benefit from the next trillion-dollar GDP growth. Managed by Vaibhav Agrawal, the multicap fund is one of the biggest PMS funds, and usually sees fund flow month-on-month. It has 29 stocks, with largecap allocation at 36 percent and midcap at 43 percent. The fund’s performance, in both short and long terms, has failed to beat the benchmark. Perhaps this is the reason for the big outflow.
3/10
The fund saw the second-highest outflow among the funds we considered. Managed by Chetan Thacker, the fund has 25 stocks in its portfolio. It usually takes shelter in stocks that have a margin of safety. It boasts preferring capital preservation in lean times and capital appreciation in the long run. The portfolio has nearly 60 percent allocated to largecap stocks and 35 percent to midcaps.
4/10
Another of ASK’s funds managed by Chetan Thacker made it to the top three, with an outflow of around Rs 100 crore in September. This fund, too, focuses largely on largecaps. It holds 26 stocks in the portfolio, with an average price-to-earnings ratio of 23. Its performance has lagged the benchmark at most times. Even in September, it failed to deliver — a time when indices were hitting highs, probably the reason behind the investor exodus.
The fund has delivered strong returns in the past year but has faltered in longer periods, lagging the benchmark. It has seen some profit-taking by investors. Managed by Raksh Tarway who has nearly two decades of experience, the fund is focused on the mid and smallcap segments of the market, with largecap allocation only 9 percent of the AUM.
6/10
Nearly a decade old, the fund has outperformed its benchmark by a mile. Though there has been some outflow, its risk-averse, cost-efficient, tax-efficient and easy-to-manage approach to investment has worked well. Managed by Siddhartha Bhaiya, a chartered accountant by training, the fund has 32 stocks in its portfolio. The investment approach is visible in the fact that this fund has a relatively lower average PE among its peers with the ratio at 16. The fund has an 83 percent allocation to smallcap stocks.
7/10
This is the second fund managed by Vaibhav Agrawal to have made it to the list. It has had a mixed run. This fund follows a value-based stock selection strategy. Though it primarily tries to invest in the largecap names lately, the portfolio has skewed towards smaller stocks, as most value is being created there.
8/10
One of the two funds from the stable of Sundaram Alternates in the list, the fund has one of the highest non-allocated cash. Primarily a midcap strategy, the fund manager Madangopal Ramu, who has about 14 years of industry experience, is geared more towards smallcap stocks. In the near term, the fund failed to beat the benchmark but in the longer term, it holds its ground.
This fund, too, is managed by Madangopal Ramu. Its performance is somewhat similar to the SELF portfolio – worse than the benchmark in the near term but better in the longer term. As of September, the multicap-oriented fund had a relatively higher allocation to largecap stocks, with half of the AUM invested in them. The fund has just 15 stocks in its portfolio and aims to generate capital appreciation across market cycles.
10/10
Another name from Motilal Oswal AMC features in the list. Managed by Atul Mehra, who has spent more than 10 years in the fund management business, it tries to identify winners in the small and midcap segment. Having 25 stocks in its portfolio, the fund boasts an average PE of 15. The largest allocation is towards financials. The fund has outperformed in the shorter term, thanks to the rally in smallcap stocks but lags the benchmark in the longer run.
Shubham Raj has six years of experience covering capital markets. He primarily writes on stocks with special focus on F&O and PMS-AIF industry.
