Nifty Records Its First Positive Month in 2023, But Only 91 PMS Strategies Outperform
Nifty Records Its First Positive Month in 2023, But Only 91 PMS Strategies Outperform
After three consecutive months of negative returns, the Indian equity markets finally ended March 2023 in positive territory. However, despite the Nifty managing marginal gains, most Portfolio Management Service (PMS) strategies struggled to outperform benchmark indices.
The month was marked by heightened global uncertainty due to banking failures in the US and Europe, leading to fears of financial contagion across global markets. The Federal Reserve’s swift intervention and rescue measures helped calm investor sentiment and stabilize markets.
Market Overview: March 2023
Benchmark Index Performance
During March 2023:
- Nifty 50 delivered a return of 0.32%
- BSE 500 recorded a return of 0.33%
- Midcap and small-cap indices ended in negative territory
- Foreign Portfolio Investors (FPIs) invested a net ₹7,936 crore into Indian equities
Despite the positive momentum in benchmark indices, only 91 out of 304 PMS strategies managed to outperform the Nifty during the month.
On average, PMS strategies delivered a return of -0.5% in March 2023.
Why Multi-Asset PMS Strategies Outperformed
With gold witnessing a strong rally during March, multi-asset allocation strategies benefited significantly.
Investors increasingly preferred:
- Diversified portfolios
- Defensive asset allocation
- Gold exposure
- Risk-balanced investment strategies
This environment helped multi-asset PMS strategies emerge among the top performers during the month.
Top 10 PMS Strategies of March 2023
Among the 304 PMS strategies tracked and analyzed by PMS Bazaar, multi-asset funds dominated the top-performing list.
Key Highlights
- 5 out of the top 10 PMS strategies were multi-asset funds
- Multi-cap strategies also delivered relatively strong performance
- Small-cap focused value strategies performed selectively well
Best Performing PMS Strategies in March 2023
1. India Opportunities Product — Aequitas Investment Consultancy
- Monthly Return: 4.43%
- Strategy Focus:
- Growth investing
- Contrarian investing
- Value investing
- Small and micro-cap opportunities
2. Tulsian PMS — Large Cap Strategy
- Monthly Return: 3.8%
- Focused primarily on large-cap equity investments
3. Prive 1 Strategy — Pace Financial Investment
- Monthly Return: 3.34%
- Diversified allocation across traditional and alternative asset classes
Category-Wise PMS Performance Analysis
Overall PMS Category Performance
The following categories displayed varied performance during March 2023:
| PMS Category | Average Return |
|---|---|
| Large & Midcap | 0.37% |
| Large Cap | 0.14% |
| Thematic | -0.32% |
| Small & Midcap | -0.67% |
| Multi Cap | -0.59% |
| Midcap | -1.55% |
| Small Cap | -1.56% |
Large & Midcap strategies emerged as the best-performing PMS category during the month.
Small Cap PMS Strategies
The small-cap category experienced a difficult month overall.
Key Statistics
- Only 8 out of 18 strategies outperformed the BSE Small Cap Index
- Category return stood at approximately -1.56%
Top Small Cap PMS Performers
India Opportunities Product — Aequitas Investment Consultancy
- Return: 4.43%
PIPE Strategy — ICICI Prudential
- Return: 2.23%
- Focused on companies with:
- Economic moats
- Special situations
- Unfavorable business cycles with turnaround potential
O3 Special Situations Portfolio — O3 Securities
- Return: 1.62%
- Invests in turnaround-oriented small-cap companies
Small & Midcap PMS Strategies
The Small & Midcap category delivered an average return of -0.67%.
Leading Strategies
VRDDHI — iThought Financial Consulting
- Return: 1.83%
- Focuses on emerging companies in:
- Mid-cap
- Small-cap
- Micro-cap segments
Future Stars — Magadh Capital Advisors
- Return: 1.7%
- Invests in:
- Fast-growing companies
- Mispriced opportunities
- Quality management-led businesses
Alphabets Strategy — QED Capital Advisors
- Return: 1.52%
- Rule-based investment strategy
Midcap PMS Strategies
Midcap strategies struggled significantly during March 2023.
Category Highlights
- Only 6 of 21 strategies outperformed the Nifty Midcap 100
- Category average return: -1.55%
Top Midcap PMS Performers
Smart Beta Strategy — Abans Investment Managers
- Return: 2.25%
- Algorithm-driven stock selection model
Mint Strategy — Reliance Wealth Management
- Return: 0.54%
Pearls Strategy — Emkay Investment Advisors
- Return: 0.52%
- Focused on bargain-hunting stock selection
Large & Midcap PMS Strategies
Large & Midcap strategies emerged as the strongest category during March.
Category Return
- Average return: 0.37%
Best Performers
Value Equity Strategy — LIC MF
- Return: 1.13%
Large & Midcap Strategy — Care Portfolio Managers
- Return: 1.08%
All Weather Portfolio — Oro Asset Management
- Return: 1.05%
Large Cap PMS Strategies
Large-cap PMS strategies delivered stable but moderate performance.
Category Overview
- Average return: 0.14%
- 9 out of 24 strategies outperformed the Nifty
Top Large Cap Strategies
Tulsian PMS Strategy
- Return: 3.8%
Absolute Freedom Strategy — Nippon India
- Return: 1.2%
Top 200 Core Equity Portfolio — Aditya Birla Sun Life AMC PMS
- Return: 0.94%
Multi Cap PMS Strategies
Multi-cap strategies experienced a relatively weak month.
Category Performance
- Average return: -0.59%
- Only 35 of 150 funds outperformed the BSE 500
Best Multi Cap PMS Strategies
Edge Strategy — Bonanza
- Return: 3.29%
Growth Pro Max Fund — Invasset
- Return: 2.64%
Value Strategy — ICICI Prudential
- Return: 2.22%
Thematic PMS Strategies
The thematic category continued to post negative returns in March.
Category Return
- Average return: -0.32%
Top Thematic PMS Performers
Focused Corp Lenders (Plan B) — Trivantage Capital Management
- Return: 1.19%
India Next Portfolio — Renaissance
- Return: 1.14%
MNC PMS Strategy — Anand Rathi Advisors
- Return: 0.46%
Key Market Drivers Going Forward
While March ended on a relatively stronger note compared to previous months, markets still face several challenges.
Key Factors to Watch
RBI Interest Rate Outlook
The RBI paused rate hikes, leading analysts to believe the interest rate cycle may have peaked in India.
Corporate Earnings
- IT sector commentary remains cautious
- Banking sector earnings appear relatively strong
Global Economic Trends
Market direction will continue to depend on:
- Inflation trends
- US Federal Reserve actions
- Global banking stability
- FPI flows
- Monsoon outlook
- Global recession fears
What This Means for PMS Investors
March 2023 highlighted the importance of:
- Asset allocation
- Diversification
- Defensive investing
- Multi-asset exposure
- Risk-managed portfolio strategies
Investors looking to navigate uncertain markets may benefit from advanced PMS analytics, portfolio comparisons, and investment research tools that enable data-driven decision-making.
Platforms like Finalyca help investors and wealth managers evaluate PMS strategies using detailed performance analytics, sector exposure analysis, benchmark comparisons, and portfolio insights.
Conclusion
March 2023 marked the first positive month for the Nifty in the year, but the broader PMS industry continued to face challenges.
Only a limited number of PMS strategies managed to outperform benchmark indices, reflecting the difficult market environment driven by:
- Global banking concerns
- Inflationary pressures
- Interest rate uncertainty
- Weak broader market sentiment
However, selective strategies, especially multi-asset and value-focused PMS approaches, demonstrated resilience and outperformance.
As markets continue to evolve, disciplined investing, diversification, and data-driven PMS analysis will remain critical for investors seeking long-term wealth creation.
