More than half of portfolio management services schemes have underperformed the Nifty in FY23. 165 out of 297 PMS schemes that constitute 56% were unable to beat the returns generated by the benchmark. As per Mint, Nifty gained about 4% for the full year 2022 while more than half of the PMS schemes have given a negative return.
However, all the individual categories outperformed their respective benchmarks. Large-cap PMS schemes saw -0.1% returns, mid-cap PMS schemes saw -0.03% returns and small-cap PMS schemes returned 0.5%. As per Financial Express, 22 PMS schemes gave double-digit returns during the year.
Small-cap strategy Hem Securities’ India Rising SME Stars returned 34.4% and was the top performer. The worst performer in FY23 is Basant Maheshwari Wealth Adviser’s Equity Fund with -26.2% returns.
Most PMS schemes adopt concentrated portfolios. This helps in hitting an overall performance even if certain calls go wrong. As per Financial Express, The Association of Portfolio Managers in India has fixed benchmarks for equity, debt, hybrid and multi-asset PMS strategies, which will be effective from April 1.
As per a latest regulatory data, under the discretionary portfolio PMS scheme managed ₹ 22.9 trillion, ₹ 1.7 trillion under the non-discretionary portfolio, and ₹ 2.2 trillion under advisory.