210 PMSes Outperformed Nifty With 114 of them producing Positive Returns in April 2022
210 PMSes Outperformed Nifty With 114 of them producing Positive Returns in April 2022
Overview
Indian equity markets witnessed volatility during April 2022 after a relatively positive March. Factors such as rising inflation, expectations of aggressive Federal Reserve rate hikes, and increasing Covid-19 cases in China negatively impacted investor sentiment.
Despite the challenging environment, Portfolio Management Services (PMS) strategies demonstrated resilience. Out of 273 PMS strategies tracked by PMS Bazaar, 210 strategies outperformed NIFTY, while 114 PMSes generated positive returns during the month.
Market Performance in April 2022
The benchmark NIFTY index declined by 2.07% in April 2022 after gaining 3.99% in March.
Key Factors Impacting Markets
- Rising global inflation
- Expectations of faster Fed rate hikes
- Increasing Covid-19 cases in China
- Volatility in global equity markets
Small-cap PMS strategies emerged as the strongest category during the month.
PMS Category Performance Snapshot
| PMS Category | Average Monthly Return |
|---|---|
| Small-cap | 2.75% |
| Thematic Investment | 1.52% |
| Small & Mid-cap | 1.11% |
| Mid-cap | 0.20% |
| Multi-cap | -0.47% |
| Large & Mid-cap | -1.25% |
| Large-cap | -1.53% |
Top 10 PMS Strategies of April 2022
Among the 273 PMS strategies analyzed by PMS Bazaar, the following strategies delivered the best performance during April 2022.
| PMS Strategy | Category | Monthly Return |
|---|---|---|
| Avestha Fund Management LLP - Growth Strategy | Multi-cap | 10.65% |
| Equitree Capital Advisors - Emerging Opportunities | Small-cap | 9.04% |
| HEM Securities - India Rising SME Stars | Small-cap | 8.96% |
| Green Portfolio - Super 30 Strategy | Thematic | 7.01% |
| Green Portfolio - Dividend Yield Strategy | Thematic | 6.77% |
| Green Lantern Capital - Growth Strategy | Small & Mid-cap | 6.69% |
| Arihant AMC - Electrum Laureate Portfolio | Small & Mid-cap | 6.58% |
| Green Portfolio - Special Strategy | Multi-cap | 6.38% |
| Aequitas Investment Consultancy - India Opportunities | Small-cap | 6.27% |
| Accuracap - Dynamo Strategy | Small & Mid-cap | 5.30% |
Small-cap PMS Performance
Small-cap PMS strategies delivered the strongest category performance during April 2022.
Category Highlights
- Average monthly return: 2.75%
- 11 out of 16 strategies outperformed the BSE Small-Cap Index
- BSE Small-Cap Index return: 1.40%
Top Small-cap PMS Strategies
| Strategy | Monthly Return |
|---|---|
| Equitree Capital Advisors - Emerging Opportunities | 9.04% |
| HEM Securities - India Rising SME Stars | 8.96% |
| Aequitas Investment Consultancy - India Opportunities | 6.27% |
Small & Mid-cap PMS Performance
The Small & Mid-cap category generated an average monthly return of 1.11%.
Top Performing Strategies
| Strategy | Monthly Return |
|---|---|
| Green Lantern Capital - Growth Strategy | 6.69% |
| Arihant AMC - Electrum Laureate Portfolio | 6.58% |
| Accuracap - Dynamo Strategy | 5.30% |
Mid-cap PMS Performance
Mid-cap PMS strategies recorded an average monthly return of 0.20%.
Category Insights
- 9 out of 21 strategies outperformed NIFTY MIDCAP 100
- NIFTY MIDCAP 100 return: 0.63%
Top Mid-cap PMS Strategies
| Strategy | Monthly Return |
|---|---|
| Asit C Mehta - Ace Midcap Strategy | 5.42% |
| Renaissance Investment Managers - Mid-Cap Portfolio | 4.08% |
| Right Horizons - Super Value Strategy | 2.28% |
Large & Mid-cap PMS Performance
The Large & Mid-cap category reported an average monthly return of -1.25%.
Top Performing Strategies
| Strategy | Monthly Return |
|---|---|
| Green Lantern Capital - Alpha Strategy | 2.30% |
| Upside AI - Upside AI 250 | 0.93% |
| Composite Investments - GARP Strategy | 0.35% |
Large-cap PMS Performance
Large-cap PMS strategies witnessed pressure during April 2022.
Category Highlights
- Average monthly return: -1.53%
- 13 out of 22 strategies outperformed NIFTY
- NIFTY return: -2.07%
Top Large-cap PMS Strategies
| Strategy | Monthly Return |
|---|---|
| Ambit Investment Advisors - Coffee Can Strategy | 0.84% |
| Reliance Wealth Management - Alpha Large Cap Strategy | 0.41% |
| Invasset - Growth Pro Max Strategy | 0.16% |
Multi-cap PMS Performance
Multi-cap PMS strategies generated an average monthly return of -0.47%.
Top Multi-cap PMS Strategies
| Strategy | Monthly Return |
|---|---|
| Avestha Fund Management - Growth Strategy | 10.65% |
| Green Portfolio - Special Strategy | 6.38% |
| Agreya Capital Advisors - Concentrated Value Discovery | 5.33% |
Thematic Investment PMS Performance
Thematic investment PMS strategies recorded an average monthly return of 1.52%.
Top Thematic PMS Strategies
| Strategy | Monthly Return |
|---|---|
| Green Portfolio - Super 30 Strategy | 7.01% |
| Green Portfolio - Dividend Yield Strategy | 6.77% |
| Right Horizons - Alphabots India Prime Strategy | 3.94% |
Key Insights for Investors
What Drove PMS Outperformance?
- Strong small-cap participation
- Active portfolio management
- Exposure to emerging growth opportunities
- Sectoral diversification
- Selective stock-picking strategies
Market Trends Observed
- Small-cap strategies significantly outperformed benchmark indices
- Multi-cap strategies benefited from diversified exposure
- Thematic investing gained traction amid market volatility
Conclusion
April 2022 was a volatile month for Indian equity markets due to macroeconomic and global uncertainties. Despite the correction in benchmark indices, PMS strategies showcased resilience, with a majority outperforming NIFTY.
Small-cap and thematic PMS categories emerged as clear outperformers, highlighting the benefits of active portfolio management and selective investing during uncertain market conditions.
Frequently Asked Questions
How many PMS strategies outperformed NIFTY in April 2022?
Out of 273 PMS strategies tracked by PMS Bazaar, 210 strategies outperformed NIFTY during April 2022.
Which PMS category performed best in April 2022?
Small-cap PMS strategies were the best-performing category with an average monthly return of 2.75%.
Which PMS strategy delivered the highest return in April 2022?
Avestha Fund Management LLP’s Growth Strategy topped the list with a monthly return of 10.65%.
Why did small-cap PMS strategies perform well?
Small-cap strategies benefited from selective stock picking, growth-oriented investments, and strong participation in emerging businesses.
What factors impacted Indian markets in April 2022?
Rising inflation, concerns over aggressive Fed rate hikes, and increasing Covid-19 cases in China contributed to market volatility during April 2022.
