More Than 50% PMS Schemes Beat Nifty in May; Small & Midcaps Lead the Charge

Seven of the top 10 performing funds in May were from the mid and small-cap space, while three were multi-cap funds.

After a muted April, the Indian market made a strong comeback in May amid a fall in new coronavirus cases in the country which once again shifted the focus to economic recovery. Benchmark indices, Nifty and Sensex, added 6.5 percent each month-on-month (MoM), while the broader market continued its outperformance with Nifty Midcap 100 and Nifty Smallcap 100 rising 6.53 percent and 8.2 percent, respectively.

The daily reported coronavirus cases peaked around 4 lakh per day in early May. Since then the number has been falling. For more than a week India has been reporting cases less than 1 lakh per day.

The strong gains in the market in May were also visible in the returns of portfolio management schemes (PMSes) as all funds, looks at, managed to generate positive returns in May. Moreover, more than 50 percent of the schemes (127 of 241) beat Nifty last month, generating alpha for investors.

Portfolio management services cater to wealthy investors and the professional fee charged by them is higher than regular mutual funds.

Care Portfolio Managers Growth Plus Value was the top gainer in May rising 17.2 percent month-on-month, according to data. The small and mid-cap fund is managed by Jayant Mamania, Amit Doshi and Arpit Shah and has Rs 412 crore of assets under management (AUM). The fund primarily focuses on the FMCG sector as it constitutes more than 25 percent of its portfolio. Chemicals, healthcare, construction are the other major constituents of the fund.

As of May 31, 2021, its top holdings included HIL (11.56 percent), LT Foods (7.48 percent), Tata Coffee (7.17 percent) and JK Paper (7.17 percent). It also held 13.61 percent of the funds in cash and cash equivalents.

Agreya Capital Advisors LLP Agreya Concentrated Value Discovery Strategy (14.42 percent), Abakkus Asset Managers LLP Abakkus Emerging Opportunities Fund (14.3 percent), Carnelian Asset Advisors Shift Strategy (13.8 percent) and Valuequest Investment Advisors Growth (13.62 percent) were the other top performers in May.

Seven of the top 10 performing funds in May were from the mid and small-cap space, while three were multi-cap funds. 

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Leading the charge

Of the total 135 multi-cap funds, 66 outperformed the BSE 500’s 6.9 percent return in May. Agreya Capital Advisors LLP Agreya Concentrated Value Discovery Strategy (14.42 percent) Carnelian Asset Advisors Shift Strategy (13.8 percent) and Valuequest Investment Advisors Growth (13.62 percent) were the top three schemes from this space.

Less than 35 percent of the largecap schemes managed to beat Nifty in May. Ambit Investment Advisors Coffee Can (9.1 percent), Asit C Mehta Investment Intermediaries Ace 15 (9 percent), Renaissance Opportunities Portfolio (8.38 percent) were some of the best performing largecap funds.

From the large and midcap space, Agreya Capital Advisors LLP Index Multiplier (7.44 percent), IDFC Asset Management Neo Equity Portfolio (6.18 percent), Bonanza Growth (5.88 percent) were among the top gainers.

More than 54 percent of the midcap-focused funds outperformed the Nifty Midcap 100. These include Renaissance Midcap Portfolio (12.24 percent), Asit C Mehta Investment Intermediaries Ace Midcap (10.6 percent) and JM Financial Services India Resurgent Portfolio Series III (9.2 percent).

Of the 14 smallcap schemes looked at, seven strategies outperformed the benchmark Nifty Smallcap in May. Accuracap Dynamo Small & Microcap, with gains of 12.8 percent, was the best performer in this space.

Nine Rivers Capital Aurum Smallcap Opportunities (12.57 percent), Negen Capital Smallcap Emerging (11.31 percent), ICICI Prudential Pipe (10.18 percent)were some of the other top-performing smallcap schemes.

From the mid and small category, Care Portfolio Managers Growth Plus Value  Portfolio at 17.2 percent was the best performing PMS.

Meanwhile, Green Portfolio MNC Advantage at 9.25 percent and Kotak Pharma at 6.89 percent led the charge in the thematic and sector fund category.