Wealth creators: PMSes that delivered up to 37% annual returns in 10 years
These strategies have held major allocation to mid- and small-cap stocks. But remember, PMS schemes come with a minimal investment of Rs 50 lakh and are meant for high-risk taking investors.
The equity asset class can be accessed through mutual funds (MF), Portfolio Management Services (PMS) and National Pension System (NPS). All these routes have rewarded investors, but they all experience different types of volatility and different return trajectories. Here, we list the top PMS strategies in terms of their returns over the last 10 years, as per data from PMSBazaar Finalyca. (Among the 58 strategies with a track record of over 10 years) Most in the list have held major allocation to mid- and small-cap stocks. Returns displayed here are as per the Securities and Exchange Board of India-defined time-weighted rate of return (TWRR) method. Returns were as of October 31, 2023 while the portfolio values were as of September 2023
2/11
Aequitas Investment Consultancy - India Opportunities Product Category: Small Cap Inception date: Feb 01, 2013 Market-Cap break-up: Large-cap (2%), mid-cap (11%), small-cap (83%) and cash (4%) Secret sauce: Risk averse, Cost efficient, Risk efficient, Simple, Transparent and Easy to manage
Nine Rivers Capital - Aurum Small Cap Opportunities Category: Small Cap Inception date: Dec 31, 2012 Market-Cap break-up: Undisclosed Secret sauce: Focused investing in 12-15 companies, upto Rs 5000 crore M-CAP with low turnover
4/11
Master Portfolio Services - Master Trust India Growth Strategy Category: Mid Cap Inception date: Oct 22, 2011 Market-Cap break-up: Undisclosed Secret sauce: invests in companies which have underutilised capacities and innovative business models which result in market share gain and margin expansion.
Care Portfolio Managers - Growth Plus Value Category: Small & Mid Cap Inception date: Jul 19, 2011 Market-Cap break-up: Large-cap (5%), mid-cap (Nil), small-cap (90%) and cash (5%) Secret sauce: betting on the dominant players in respective segments. Bottom-up approach of growth potential, strong financials, good management, attractive valuations.
6/11
Accuracap - Picopower Category: Small & Mid Cap Inception date: Oct 10, 2011 Market-Cap break-up: Large-cap (1%), mid-cap (19%), small-cap (75%) and cash (5%) Secret sauce: Stock selection is based on Artificial Intelligence, focus on business fundamental. Average holding period of stocks around 2 years. It avoids public sector & IPO.
Abans Inv. Managers - Growth & Momentum Category: Mulit Cap Inception date: Jan 01, 2012 Market-Cap break-up: Large-cap (34%), mid-cap (26%), small-cap (32%) and cash (8%) Secret sauce: It holds a concentrated portfolio and follows growth and momentum strategies while picking the stocks.
8/11
Aditya Birla Sun Life AMC - SSP Category: Small & Mid Cap Inception date: Oct 06, 2009 Market-Cap break-up: Large-cap (19%), mid-cap (37%), small-cap (39%) and cash (5%) Secret sauce: It bets on companies with sustainable growth over long-term in select industries. About 80% portfolio has been invested in 4 to 6 sectors.
Centrum PMS - Multibagger Category: Mid Cap Inception date: Mar 05, 2012 Market-Cap break-up: Large-cap (5%), mid-cap (22%), small-cap (69%) and cash (4%) Secret sauce: It invests in deep value stocks across sectors and segments. It identifies turnaround situation that are due to various factors like change in management, demand-supply scenario, improved business environment, favorable government policies, among others.
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Girik Capital - Multicap Growth Equity Category: Multicap Inception date: Dec 03, 2009 Market-Cap break-up: Large-cap (39%), mid-cap (11%), small-cap (43%) and cash (7%) Secret sauce: The portfolio of the strategy tries to identify “Early Leaders or Winners” much ahead of their largest earnings growth curve.
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Kotak - Small & Mid Cap Category: Small and Mid Cap Inception date: Apr 30, 2012 Market-Cap break-up: Large-cap (13%), mid-cap (16%), small-cap (70%) and cash (1%) Secret sauce: The portfolio follows a stock-specific approach with a medium to long term perspective. It invests across sectors with a bias to invest in companies backed by able managements with sound fundamentals and strong future potential.
