With 4.3% returns on average, most PMS schemes beat Nifty in July

Large-cap PMS schemes gave average returns of 2.5 per cent, mid-cap schemes at 4.7 per cent, multi cap schemes 4.5 per cent and small-cap 9.1 per cent

July was a good month for PMS schemes, with 252 out of 261 schemes under consideration outperforming the Nifty50. The 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 Under-served (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), mid-cap schemes (4.7 per cent), multi cap schemes (4.5 per cent), and small-cap (9.1 per cent) — all outperformed their respective category benchmark indices.

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) are the top performers.

Returns were calculated on a time-weighted rate of return basis for the schemes under consideration. 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 Rs 17.97 trillion under discretionary portfolio, Rs 1.4 trillion under non-discretionary portfolio, and Rs 1.91 trillion under advisory.

The PMS segment invests money on behalf of well-off individuals. The minimum investment that regulations allow is Rs 50 lakh. It was Rs 25 lakh earlier. Sebi had increased the amount as part of a larger tightening of PMS regulations. This also included increasing net worth requirements and compliance standards.