Portfolio management service schemes outperform in January, shows data

Portfolio Management Service (PMS) providers gave higher returns than market indices in January as per data from the industry tracker PMSBazaar.

The median returns for the month of January was 2.15 per cent for schemes focused on large companies, such as the ones that make up the Nifty 50 index. The benchmark index returned 0.02 per cent during the same period. The outperformance held across all time periods. These schemes have given a 17 per cent annualised return over the last ten years, compared to 14.95 per cent for the benchmark.

The analysis considered 97 schemes which have the Nifty 50 Total Returns Index as its benchmark. Around 73 outperformed in January.

Another 239 schemes use the wider S&P BSE 500 Total Returns Index as their benchmark. This includes a large number of smaller companies as well. Around 144, or 60 per cent of the total schemes, outperformed during January.

The median return for these schemes was 2.86 per cent in January compared to benchmark returns of 1.92 per cent. Not all schemes have data over longer periods. But numbers show that they have broadly outperformed among those for which data was available. The only period of underperformance was over the last three months. They had median returns of 15.86 per cent compared to 17.88 per cent for the benchmark.