80% of PMS Funds Stumble in June

timesinternet.in ETMarkets.com: Only 20% of the 100-odd portfolio management schemes (PMS) managed to generate positive returns in June, the best being 2%, initial data on 43 schemes showed. Smallcap-focused PMS schemes met with the biggest disappointment, where none of the 16 schemes being able to create wealth to investors. IndiaNivesh’s ‘ SPROUT’, which manages over ₹ 100 crore, eroded investor wealth by 6.90 percentage points. Accuracap’s Dynamo (down 6.48%), CARE PMS’s Growth Plus Value ( down 6.06%) and Kotak AMC’s Small & Midcap Scheme (down 4.80%) all delivered negative returns. Motilal Oswal’s IOP (which manages over ₹ 3,400 crore in assets) and IOP V2 (`565 crore AUM) delivered negative returns of 4.78% and 4.41%, respectively. The BSE Smallcap index fell 4.22% during the month.

A couple of schemes such as Systematix Shares’ Dynamic Investment Portfolio, Tamohara investment managers’ TLES, Ambit Capital's Emerging Giants, Nine Rivers Capital’s Aurum Small Cap Opportunities and Prabhudas Lilladher’s Fortune Strategy managed to outperform the benchmark index but still eroded investor wealth by 0.35-1.78%. The Systematix scheme also included mid-cap stocks. HNIs investing in multicap schemes also met with dismal results. As many as 35 of the 44 schemes under review reported up to 4% drop in returns for the month. Schemes run by Kotak AMC, Edelweiss, Accuracap, Satco Capital Markets, Buoyant Capital, NJ Advisory and Aditya Birla Capital all fell between 2% and 4%.