Markets Start the New Year on a Dull Note, Even as 171 PMS Strategies Outperform the Nifty
Markets Start the New Year on a Dull Note, Even as 171 PMS Strategies Outperform the Nifty
The Indian equity markets continued their weak momentum in January 2023 as investors remained cautious ahead of the Union Budget. Persistent FII selling, global uncertainty, and inflation concerns weighed heavily on market sentiment.
Despite the challenging environment, several Portfolio Management Services (PMS) strategies managed to outperform benchmark indices, showcasing resilience across select categories.
Market Overview – January 2023
January 2023 was marked by:
- Continued weakness across benchmark indices
- Heavy Foreign Institutional Investor (FII) selling
- Uncertainty ahead of the Union Budget
- Volatile global macroeconomic conditions
- Inflation and interest rate concerns
FIIs sold equities worth nearly Rs. 30,000 crore during the month, putting pressure on large-cap, mid-cap, and small-cap stocks alike.
Key Market Highlights
- Nifty ended the month in negative territory
- Midcap and small-cap indices also declined
- 171 out of 311 PMS strategies outperformed the Nifty
- Multi-asset allocation strategies showed strong resilience
Top 10 PMS Strategies of January 2023
From the 311 PMS strategies tracked and analyzed by PMS Bazaar, the following emerged as the top performers for January 2023.
Best Performing PMS Strategies
1. Sustainer Strategy – Pace Financial Investment Adviser
- Return: 3.29%
- Strategy Style: Balanced allocation approach
2. India Rising SME Stars – Hem Securities
- Return: 3.08%
- Focus: Small and medium enterprises
3. Prive 1 Strategy – Pace Financial Investment Adviser
- Return: 2.78%
- Focus: Customized portfolio management
Multi-asset allocation strategies dominated the list of top performers during the month, highlighting the importance of diversification during volatile market phases.
Performance Comparison Against Nifty
The following chart compares the returns of the top PMS strategies against the Nifty benchmark.
Category-Wise PMS Performance – January 2023
Different PMS categories delivered mixed results during the month.
Key Observations
- Small-cap PMS strategies performed relatively better
- Large & midcap strategies saw the steepest decline
- Multi-cap funds outperformed broader benchmarks
- Thematic strategies struggled due to market volatility
Small-Cap PMS Strategies
The small-cap category showed relatively strong resilience in January 2023.
Highlights
- 16 out of 18 small-cap strategies outperformed the BSE Small Cap index
- India Rising SME Stars was the top performer
Top Small-Cap PMS Strategies
India Rising SME Stars – Hem Securities
- Return: 3.08%
Diversified Long-Term Value – Counter-Cyclical Investments
- Return: 2.35%
India Opportunities Product – Aequitas Investment Consultancy
- Return: 0.10%
The category continued to attract attention due to its focus on high-growth emerging businesses.
Small & Midcap PMS Strategies
The small & midcap category delivered an average return of -1.44% during January 2023.
Top Performers
Vrddhi – iThought Financial Consulting
- Return: 2.28%
Focused Mid-Small Cap – Edelweiss Asset Management
- Return: 0.81%
Abakkus Emerging Opportunities Approach
- Return: 0.70%
Midcap PMS Strategies
Midcap-focused PMS strategies continued their modest performance trend.
Midcap PMS Highlights
- Only 8 out of 21 strategies beat the Nifty Midcap 100
- Category average return stood at -2.76%
Best Midcap PMS Strategies
Clean Tech Portfolio – Nafa Asset Managers
- Return: 1.45%
Focused Midcap – Motilal Oswal
- Return: -1.15%
ACE Midcap – Asit C Mehta Investment Intermediates
- Return: -1.66%
Large & Midcap PMS Strategies
The large & midcap segment remained under pressure.
Category Overview
- Average category return: -2.82%
- All strategies ended in negative territory
Top Performers
Large & Midcap Strategy – Care Portfolio Managers
- Return: -0.21%
Growth Strategy – Bonanza
- Return: -2.33%
Neo Equity Portfolio – IDFC Asset Management
- Return: -2.64%
Large-Cap PMS Strategies
Large-cap PMS strategies delivered average performance amid market weakness.
Large-Cap PMS Highlights
- 10 out of 25 strategies outperformed the Nifty
- Only one strategy generated positive returns
- Category average return: -2.68%
Top Large-Cap PMS Strategies
CO-IN Strategy – iThought Financial Consulting
- Return: 1.66%
Exposure Equity Index Strategy – Agreya Capital Advisors
- Return: -0.51%
ACE 15 Strategy – Asit C Mehta Investment Intermediates
- Return: -0.68%
Multi-Cap PMS Strategies
Multi-cap PMS strategies delivered a comparatively healthy performance in January 2023.
Key Insights
- 104 out of 154 strategies outperformed the BSE 500
- Category average return: -2.55%
Best Multi-Cap PMS Strategies
Blue-Chip Strategy – NJ Asset Management
- Return: 2.26%
Dynamic Stock Allocation Strategy – NJ Asset Management
- Return: 2.09%
YNG Strategy – Carnelian Asset Advisors
- Return: 1.32%
Thematic PMS Strategies
The thematic category struggled during January 2023.
Category Highlights
- Average return: -2.86%
- Only one strategy delivered positive returns
Top Thematic PMS Strategies
Super 30 Strategy – Green Portfolio
- Return: 0.08%
Impact ESG Strategy – Green Portfolio
- Return: -1.23%
Dividend Yield Fund – Green Portfolio
- Return: -1.25%
Outlook for PMS Strategies and Indian Markets
The Indian markets remain volatile amid:
- Rising inflation concerns
- RBI’s hawkish interest rate stance
- Global recession fears
- FII selling pressure
However, the completion of the Union Budget and easing uncertainty could provide clarity for investors going forward.
Diversified PMS strategies, especially multi-asset and multi-cap approaches, may continue to offer relative stability during uncertain market cycles.
How Finalyca Helps Investors Analyze PMS Performance
Finalyca empowers investors, wealth managers, and distributors with advanced PMS analytics and comparison tools.
Key Benefits of Finalyca
- Compare PMS strategies across categories
- Analyze benchmark-adjusted returns
- Evaluate fund manager performance
- Access detailed portfolio insights
- Monitor historical PMS trends
- Generate data-driven investment reports
Whether you are an HNI, wealth advisor, or institutional investor, Finalyca helps simplify PMS research and portfolio decision-making.
Conclusion
January 2023 proved to be another challenging month for Indian equity markets. Despite weak sentiment and sustained FII selling, a significant number of PMS strategies outperformed benchmark indices.
The performance once again highlighted the importance of diversification, active portfolio management, and strategic asset allocation during volatile market phases.
As investors navigate uncertain market conditions, leveraging advanced analytics platforms like Finalyca can help identify stronger PMS opportunities and make more informed investment decisions.
