8 out of 10 PMSes Out-Performed Nifty in November
8 out of 10 PMSes Out-Performed Nifty in November
Overview
The Indian stock market witnessed volatility in November 2021, with benchmark indices correcting amid concerns around faster Federal Reserve tapering and the emergence of a new Covid-19 variant. Despite this, Portfolio Management Services (PMS) strategies demonstrated resilience and significantly outperformed benchmark indices.
Out of the PMS strategies tracked by PMS Bazaar, nearly 83% managed to outperform the Nifty 50 during the month.
Market Performance in November 2021
The Nifty 50 declined by 3.9% in November 2021. However, broader markets remained relatively stable:
| Index | November 2021 Performance |
|---|---|
| Nifty 50 | -3.9% |
| Nifty Midcap 100 | -2.69% |
| BSE Smallcap | -0.16% |
PMS strategies with exposure across broader markets such as midcaps, smallcaps, and multicap portfolios were able to generate better relative performance.
Best PMS Strategies of the Month
Despite negative market sentiment, several PMS strategies delivered positive returns during the month.
Top Performing PMS Strategies
| PMS Strategy | Category | November Return |
|---|---|---|
| Right Horizons Super Value | Midcap | 4.58% |
| Silverarch Mid & Small Cap Equity | Small & Midcap | 3.7% |
| Systematix Dynamic Investment Portfolio | Multicap | 3.35% |
| SageOne Small & Microcap | Smallcap | 2.75% |
| Composite Investments Emerging Star Fund | Small & Midcap | 2.65% |
| Carnelian Shift Strategy | Multicap | 2.18% |
| Green Portfolio Dividend Yield | Thematic | 1.91% |
| Centrum Good to Great | Midcap | 1.68% |
| Silverarch India Equity Portfolio | Multicap | 1.68% |
| Wize Market Analytics Capital Mind - Long Term Portfolio | Multicap | 1.48% |
The outperforming strategies generally had exposure to sectors such as:
- Healthcare
- Information Technology (IT)
- Power
These sectors remained relatively resilient during the broader market correction.
PMS Category-Wise Performance
Largecap PMS
The average return for largecap PMS strategies stood at -2.88% during November 2021.
Top Largecap PMS Strategies
| Strategy | Return |
|---|---|
| Agreya Capital Advisors Exposure Equity Index Strategy | -0.08% |
| Wize Market Analytics Capital Mind - Market Fund | -0.66% |
| Ambit Inv. Advisors Coffee Can | -1.39% |
Large & Midcap PMS
Large & midcap PMS strategies reported an average category return of -1.94%.
Best Performing Strategies
| Strategy | Return |
|---|---|
| Upside AI 250 | 1.37% |
| Sykes & Rays Equities SRE Shield | -0.16% |
| Bonanza Growth | -1.87% |
Midcap PMS
Midcap PMS strategies delivered stronger relative performance compared to benchmark indices.
Category Average Return
-1.37%
Top Midcap PMS Strategies
| Strategy | Return |
|---|---|
| Right Horizons Super Value | 4.58% |
| Centrum Good to Great | 1.68% |
| Centrum Deep Value | 1.44% |
Small & Midcap PMS
The category average return for small & midcap PMS strategies stood at -1.5%.
Top Small & Midcap PMS Strategies
| Strategy | Return |
|---|---|
| Silverarch Mid & Small Cap Equity | 3.7% |
| Composite Investments Emerging Star | 2.65% |
| Edelweiss Focused Smallcap | 0.91% |
Smallcap PMS
Smallcap PMS strategies reported an average return of -1.74% in November 2021.
Best Smallcap PMS Strategies
| Strategy | Return |
|---|---|
| SageOne Small & Microcap | 2.75% |
| AccuraCap Picopower | 1.43% |
| Equitree Capital Advisors Emerging Opportunities | 1.24% |
Multicap PMS
Multicap remained the largest PMS category during the month.
Category Average Return
-2.15%
Top Multicap PMS Strategies
| Strategy | Return |
|---|---|
| Systematix Dynamic Investment Portfolio | 3.35% |
| Carnelian Shift Strategy | 2.18% |
| Silverarch India Equity Portfolio | 1.68% |
Thematic & Sector PMS
Thematic and sector-focused PMS strategies also delivered relatively strong performance during November 2021.
Top Thematic PMS Strategies
| Strategy | Return |
|---|---|
| Green Portfolio Dividend Yield | 1.91% |
| Super 30 | 0.42% |
Key Insights for Investors
What Helped PMS Strategies Outperform?
- Diversified exposure across market caps
- Higher allocation to defensive sectors
- Focus on fundamentally strong businesses
- Reduced dependence on benchmark-heavy largecap names
Key Themes Observed
- Midcap and multicap strategies performed relatively better
- Healthcare and IT sectors remained resilient
- Volatility favored active portfolio management approaches
Conclusion
November 2021 was a challenging month for Indian equity markets, but PMS strategies showcased the advantages of diversified and actively managed portfolios. A majority of PMS strategies managed to outperform the Nifty 50, particularly those focused on midcaps, multicap investing, and thematic opportunities.
The month highlighted the importance of active portfolio allocation, sector diversification, and disciplined investment strategies during periods of market volatility.
Frequently Asked Questions
What percentage of PMS strategies outperformed the Nifty in November 2021?
Approximately 83% of PMS strategies tracked by PMS Bazaar outperformed the Nifty 50 during November 2021.
Which PMS category performed best during November 2021?
Midcap, small & midcap, multicap, and thematic PMS strategies delivered relatively stronger performance.
Which PMS strategy was the top performer?
Right Horizons Super Value strategy delivered the highest return with a gain of 4.58% during November 2021.
Why did PMS strategies perform better than benchmark indices?
PMS strategies benefited from diversified allocations across sectors and market capitalizations, along with active portfolio management.
Which sectors remained resilient during the market correction?
Healthcare, Information Technology (IT), and Power sectors showed relatively better resilience during the November 2021 correction.
