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Only 50% of rich men’s wealth managers made money on D-Street in Nov rally

As many as 14 schemes in the multicap space delivered over 1.50 per cent return to investors.

, ETMarkets.com|
Updated: Dec 09, 2019, 11.07 AM IST
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Data collated by PMSbazaar showed majority of the model portfolios of PMSes delivered better returns than aggregate portfolios for the month.
Sustained inflows from foreign institutional investors (FII), government efforts to arrest the economic slowdown with structural reforms and improved global cues helped benchmark Nifty move higher by 1.50 per cent in November

Portfolio management schemes (PMSes), run by leading portfolio managers and boutique wealth management firms managing money for the ultra rich, made most of this upsurge and at least half of them delivered positive returns to investors during the month.

In the broader market, BSE500 index gained 1.17 per cent, BSE Midcap index 1.48 per cent and the Smallcap index 0.02 per cent, suggesting widening of the market momentum, which had moved only a couple of largecaps till the previous month.

Data collated by PMSbazaar showed majority of the model portfolios of PMSes delivered better returns than aggregate portfolios for the month. Overall, 28 schemes from across categories outpaced benchmark returns last month.

Model portfolios
A model portfolio consists of a number of underlying investments wrapped into single package. Among model portfolio providers, Trivantage Capital Management’s Resurgent Financial Equity delivered the maximum return for November at 6.30 per cent. It was followed by Avestha Fund Management’s Growth strategy (6.23 per cent) and Kotak AMC’s Pharma strategy (3.10 per cent).

PMSes cater to big-ticket clients and use risky investment strategies across asset classes. The minimum ticket size of these schemes used to be Rs 25 lakh, which was since been doubled by Sebi to Rs 50 lakh.

Invesco’s Dawn and RISE schemes, Motilal Oswal’s Value and IOP schemes, ICICI Prudential’s Contra portfolio and Flexi Cap schemes, Kotak AMC’s Fintech Fund, Sundaram AMC’s SELF Portfolio and Narnolia’s 3T scheme delivered between 2 per cent and 3 per cent returns for the month.

Among the laggards, Anand Rathi Advisors’ MNC PMS, Emkay Investment Managers’ Emkay Lead PMS and Motilal Oswal’s BOP declined between 2.50 per cent and 3 per cent.

Aggregate portfolio
Among aggregate portfolio providers, Capgrow Capital Advisors’ Growth and Ambit Capital’s Emerging Giants schemes delivered 6.23 per cent and 2.90 per cent returns to investors for the month. Lake Water Advisors’ Lake Water strategy and Phillip Capital’s Emerging India portfolio gained 2.71 per cent and 2.23 per cent, respectively.

Aggregate portfolio refers to all the client portfolios under a regular portfolio, and it uses time-weighted rate of return of each client to compute an arithmetic average for the overall strategies.

Meanwhile, Care PMS’ Growth Plus Value, Ambit Capital’s Coffee Can and Alchemy’s Alchemy Leaders bled during the month, losing 5.63 per cent, 3.10 per cent and 3 per cent, respectively.

Largecap strategies
Only two schemes under the largecap segment managed to outpace Nifty in November: Motilal Oswal’s Value strategy and ICIC Prudential’s Large Cap.

PMS Table 1

Midcap & smallcap strategies
In the space of second-rung stocks, schemes managed by Phillip Capital, Sundaram AMC, Ambit Capital and Motilal Oswal delivered between 1.50 per cent and 3 per cent return to investors for the month.

PMS table 2

Multicap strategies
As many as 14 schemes in the multicap space delivered over 1.50 per cent return to investors.

PMS Table 3

Market regulator Securities and Exchange Board of India (Sebi) last month also enhanced the net worth requirement of portfolio managers to Rs 5 crore from Rs 2 crore.
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