Higher risk for higher returns: The top midcap and smallcap PMS stocks to bet on

Indian equity market saw a roller-coaster ride in 2022. After moving downwards in the first half, stocks showed a strong upward move in the second half. But, not all stocks, especially the mid- and small- cap space participated in the rally. Large-cap indices outperformed the midcap and smallcap indices in the year of 2022. Investment vehicles such as mutual funds, Unit-Linked Insurance Plans (ULIP) and Portfolio management services (PMS) followed suit. As far as the PMS strategies, of the 300 PMS strategies, 131 strategies delivered positive return in 2022, PMSBazaar data show. Here are the top performing PMS strategies in 2022, as per PMSBazaar data. Interestingly, strategies that held major allocation to midcap and smallcap stocks mostly were the top of the chart in 2022. Prudent stock selection helped those strategies to deliver returns up to 35% during the period.

Molecule Ventures – Growth
Category: Small-cap
Investment attributes: Investment objectives of the strategy is to achieve appreciation through medium to long term investments in quality companies with strong growth prospects, mostly in the mid and small cap

Counter Cyclical Investments - Diversified Long Term Value
Category: Small-cap
Investment attributes: It manages a diversified portfolio of high quality small caps with strong, competent & honest management that are available at a discount

ICICI Prudential - Value Strategy
Category: Multi-cap
Investment attributes: It chooses to invest in stock which trades at valuations that are significantly below the estimated fair value of the company

Renaissance - Indianext Portfolio
Category: Thematic
Investment attributes: It follows a theme based investment strategy

ICICI Prudential - Pipe Strategy
Category: Small-cap
Investment attributes: It invests in companies with market capitalization less than the largest market capitalisation stock in S&P BSE Smallcap Index

ICICI Prudential - Contra Strategy
Category: Multi-cap
Investment attributes: It invests in under-performing sectors and stocks that are available at intrinsic valuations

Fort Capital Investment Advisory - Value Fund
Category: Small-cap
Investment attributes: It invests primarily in smallcap and microcap stocks

Aequitas Investment Consultancy - India Opportunities Product
Category: Small-cap
Investment attributes: It invests mainly in smallcap stocks aiming to generate long term wealth

Trivantage Capital Management - Focussed Corp Lenders (Plan B)
Category: Thematic
Investment attributes: It holds a portfolio of equity and equity-related securities of especially from Indian Financial Institutions

Renaissance - Midcap Portfolio
Category: Mid-cap
Investment attributes: It holds a concentrated portfolio of holding around 20 stocks. It tries to identify high growth businesses at their early stage

Right Horizons - Minerva India Under-Served
Category: Small-cap
Investment attributes: It holds a concentrated portfolio with 10-20 stocks

Tulsian PMS - Tulsian PMS
Category: Large-cap
Investment attributes: It holds a balanced portfolio consisting of a mix of large cap, mid cap, small cap and micro-cap stocks

Spark Fund Managers - India @75 Core & Satellite
Category: Flexi-cap
Investment attributes: Portfolio of the strategy consists 12-18 stocks and is built using a flexicap approach

Ithought Financial Consulting – SPHERE
Category: Multi Asset
Investment attributes: Ithought’s Sphere strategy invests across multiple asset classes and to provide a holistic investment structure

OAKS Asset Management - ABC Equity Portfolio
Category: Flexi-cap
Investment attributes: This strategy tries to capture select transformative trends which are currently undervalued & under owned, via a concentrated portfolio