Continuous Drawdown for the Third Month PMS Performance Dips in June 2022
Continuous Drawdown for the Third Month: PMS Performance Dips in June 2022
June 2022 remained a challenging month for equity markets and Portfolio Management Services (PMS) in India. Persistent global inflation concerns, rising interest rates, and tightening monetary policies continued to weigh heavily on investor sentiment.
Out of the 279 PMS strategies tracked by PMS Bazaar, only 129 schemes managed to outperform the NIFTY index, while just six PMS strategies generated positive monthly returns during June 2022.
Market Overview: June 2022 PMS Performance
Global financial markets experienced heightened volatility during June 2022 due to:
- Rising global inflation
- Aggressive interest rate hikes
- Recession fears
- Geopolitical tensions
- Weak investor sentiment
These macroeconomic pressures negatively impacted most PMS categories, particularly mid-cap and multi-cap strategies.
Despite the challenging market environment, a few PMS strategies managed to limit downside risks and outperform benchmark indices.
Top 10 PMS Strategies of June 2022
Here are the top-performing PMS strategies monitored and analyzed by PMS Bazaar during June 2022.
1. Growth Fund – Green Lantern Capital LLP
The Growth Fund emerged as the top-performing PMS strategy in June 2022 with a monthly return of 2.84%.
Investment Strategy
The strategy focuses on:
- Mid-cap and small-cap companies
- Long-term wealth creation
- Superior risk-adjusted returns
- Growth-oriented investment opportunities
2. Emerging Opportunities Strategy – Equitree Capital Advisors Pvt Ltd
The Emerging Opportunities Strategy secured the second position with a monthly return of 1.16%.
Investment Focus
The strategy emphasizes:
- Long-term value creation
- Emerging businesses
- Quality management teams
- Scalable business models
3. EXCEL Strategy – Karvy Capital Ltd
The EXCEL Strategy ranked third with a monthly return of 0.85%.
Key Characteristics
- Debt-focused strategy
- Low to moderate risk profile
- Stability-oriented portfolio allocation
PMS Performance vs NIFTY in June 2022
The chart below compares the monthly returns of top PMS strategies against the NIFTY index during June 2022.
Category-Wise PMS Performance Analysis
Different PMS categories experienced varying levels of drawdowns during June 2022.
Small-Cap PMS Performance
The small-cap PMS category recorded an average monthly return of -4.21% in June 2022.
- 10 out of 15 PMS strategies outperformed the BSE Small Cap Index
- BSE Small Cap Index return: -6.01%
Top 3 Small-Cap PMS Strategies
- Emerging Opportunities Strategy – Equitree Capital Advisors (1.16%)
- Value Fund – Fort Capital Investment Advisory (-0.49%)
- Minerva India Under-Served Strategy – Right Horizons (-0.62%)
Small & Mid-Cap PMS Performance
The Small & Mid-cap category delivered an average monthly return of -4.11%.
Top Performers
Growth Fund – Green Lantern Capital LLP
- Monthly return: 2.84%
Midcap PMS Fund – Atlas Integrated Finance Ltd
- Monthly return: -0.23%
Diversified Long Term Value Strategy – Counter Cyclical Investment Pvt Ltd
- Monthly return: -1.40%
Mid-Cap PMS Performance
The mid-cap PMS category witnessed an average monthly return of -5.66%.
- 14 out of 20 PMS strategies outperformed NIFTY MIDCAP 100
- NIFTY MIDCAP 100 return: -6.49%
Top 3 Mid-Cap PMS Strategies
- PEARLS Strategy – Emkay Investment Managers (-2.99%)
- Emerging India Strategy – Nippon India (-3.10%)
- GEMS Strategy – Emkay Investment Managers (-3.33%)
Large & Mid-Cap PMS Performance
The Large & Mid-cap category generated an average monthly return of -4.83%.
Top Performers
All Weather Portfolio – Oro Asset Management
- Monthly return: -1.84%
Alpha Fund – Green Lantern Capital LLP
- Monthly return: -2.07%
Freedom Portfolio – Geojit Financial Services Limited
- Monthly return: -3.84%
Large-Cap PMS Performance
Large-cap PMS strategies recorded an average monthly return of -5.07%.
- 8 out of 20 strategies outperformed NIFTY
- NIFTY return: -4.85%
Top 3 Large-Cap PMS Strategies
- Exposure Equity Index Strategy – Agreya Capital Advisors LLP (-0.18%)
- Pelican PE Fund – Pelican Investments (-2.84%)
- Value Strategy – Motilal Oswal (-3.75%)
Multi-Cap PMS Performance
The Multi-cap category recorded an average monthly return of -5.30%.
- 70 out of 147 PMS strategies outperformed the BSE 500 Index
- BSE 500 return: -5.21%
Top 3 Multi-Cap PMS Strategies
- Dynamic Stock Allocation Portfolio Conservative – NJ Asset Management (-1.00%)
- Long Term Value Strategy – Eklavya Capital Advisors LLP (-1.43%)
- Q Strategy – Tamohara Investment Managers (-1.58%)
Thematic PMS Performance
Thematic PMS strategies performed relatively better compared to broader market categories.
The category recorded an average monthly return of -3.88%.
Top 3 Thematic PMS Strategies
- MNC Advantage Strategy – Green Portfolio (-0.66%)
- MNC PMS Strategy – Anand Rathi Advisors (-1.10%)
- Healthcare Portfolio Strategy – Incred PMS (-1.68%)
Key Insights from June 2022 PMS Performance
Market Volatility Impacted Most PMS Categories
Persistent macroeconomic uncertainty resulted in broad-based declines across PMS strategies.
Small-Cap and Thematic Strategies Showed Relative Strength
Despite weak markets, select small-cap and thematic PMS strategies managed to outperform benchmark indices.
Defensive and Diversified Strategies Outperformed
PMS strategies with diversified allocation, defensive positioning, and lower volatility exposure demonstrated better downside protection.
Why PMS Performance Analysis Matters
Monitoring PMS performance helps investors:
- Compare strategy performance
- Assess risk-adjusted returns
- Evaluate fund manager consistency
- Understand sector exposure
- Make informed portfolio decisions
For wealth managers and HNIs, PMS analytics provide valuable insights into portfolio resilience during volatile market conditions.
Conclusion
June 2022 marked the third consecutive month of drawdowns for PMS strategies in India as inflation concerns and rising interest rates continued to pressure financial markets.
Although most PMS categories reported negative returns, select strategies demonstrated resilience and outperformed benchmark indices through disciplined investment approaches and effective risk management.
As market volatility continues to influence investor sentiment, data-driven PMS analysis and portfolio diversification remain essential for long-term investment success.
