Over 20 Stocks from Top 5 PMS Funds Outperformed Nifty in March
Around 50 percent of the Portfolio Management Schemes (PMSes) managed to beat Sensex in the roller coaster month of March. Of the 213 schemes PMSBazaar.com looked at, 153 (72 percent) generated positive returns in March. Portfolio Management Services (PMS) cater to wealthy investors with portfolio sizes exceeding Rs 50 lakh.
Nifty50 and Sensex rose by about 1 percent compared to the 1.02 percent rise seen in the S&P BSE Midcap, and the 2.4 percent rally in the S&P BSE Smallcap index in March.
Riding the momentum in the small & midcap space, the top five funds that outperformed the Nifty50 were from smallcap, midcap as well as multicap category.
Nine Rivers Capital Aurum Smallcap Opportunities was the top-performing scheme, rising 15.6 percent month-on-month (MoM).
Valentis Advisors Rising Star Opportunity (11.16 percent), Alchemy Ascent (8.2 percent), NJ Asset Management Bluechip (7.18 percent), Centrum PMS Micro (7.16 percent) were the other top performers in March.
Here’s a collated list of funds that have declared their March stock holdings.
Top five holdings of Nine Rivers Capital include names like Intellect Design, Poly Medicure, Praj industries, Astra microwave, and Central Depository Services.
The Nifty50 and Sensex might have rallied by about 70 percent in FY21 but small & midcap indices almost doubled in the same period. Experts feel that investors should use dips to get into quality mid & small-cap stocks.
“Mid & small-caps are actually coming out of a 3-year brutal bear market. Going forward, we expect the mid & small-caps to further catch up and outperform the large cap indices,” Niraj Kumar, Chief Investment Officer, Future Generali India Life Insurance Co. Ltd.“The mid & small-caps generally tend to perform well in an economic upcycle, wherein they tend to benefit disproportionately from operating and financial leverage. We believe that we are at the cusp of one such economic upcycle and that mid and small-cap companies will also partake in this recovery and perform well,” he said.
To select stocks in the broader market space, pick the sectoral leaders and companies that have relatively less debt on the books compared to peers and also have a strong growth model.
“This time too we think that mid and small-cap will outperform the markets. However, in the euphoria, don’t forget the fundamentals of the company. Because it's only when the tide goes out that you learn who has been swimming naked,” Divam Sharma, Co-founder at Green Portfolio.
“In our opinion, the large cap space will grow at a rate more or less representing the economic growth as we see them facing a mild saturation kind of a situation. However, selected mid and small-cap counters have room to grow disproportionately. We keep looking for companies with lesser debt and growth plans,” he said.