Most PMS plans beat Nifty

July was a good month for PMS (portfolio management service) schemes with 252 of the 261 schemes under consideration outperforming the Nifty50. These schemes returned 4.5 per cent on average, better than the 0.3 per cent given by the benchmark.

Better performing strategies in July included Right Horizon’s Minerva India Underserved (22.9 per cent), Aequitas Investment Consultancy’s India Opportunities Product (14.9 per cent), and Green Lantern Capital’s Growth Fund (14.6 per cent), the data from PMS Bazaar showed. Large-cap PMS schemes (average returns of 2.5 per cent), midcap schemes (4.7 per cent), multi-cap schemes (4.5 per cent), and small-cap (9.1 per cent) outperformed their respective benchmark index.

On a one-year basis, Negen Capital’s Emerging Opportunities Fund (171.8 per cent), Nine Rivers Capital’s Aurum Small Cap Opportunity (147 per cent), and Green Lantern Capital’s Growth Fund (146.8 per cent) were the top performers.

Returns were calculated on a time-weighted rate of return basis for the schemes. The time-weighted rate of return eliminates the effects of inflows and withdrawals from the schemes to get a clearer sense of the fund manager's performance.

According to the latest regulatory data from Sebi, PMS schemes managed ~17.97 trillion under discretionary portfolio, ~1.4 trillion under nondiscretionary portfolio, and ~1.91 trillion under advisory.

The PMS segment invests money on behalf of well-off individuals. The minimum investment that regulations allow is ~50 lakh.