Nearly all of the PMS schemes delivered positive returns in April on the back of a rebound in the market. The schemes, however, underperformed the benchmark indices, with the large-cap, multi -cap and the mid- & small-cap categories giving average category returns of 12.1 per cent, 11.6 per cent and 13.2 per cent, respectively.
In comparison, the Nifty, Nifty MidCap 100 and BSE 500 gave returns of 14.7 per cent, 15.4 per cent and 14.6 per cent.
For a one-year period, the Consistent Compounders strategy run by Marcellus is the best performer with returns of 16.6 per cent, followed by MNC PMS run by Anand Rathi Advisors (12.3 per cent) and Coffee Can run by Ambit Capital (10.7 per cent).
The bloodbath in the markets in the past two months has come as a body blow for the PMS industry. A sizeable number of PMS schemes lean towards mid- and small-caps in their portfolio and run concentrated portfolios of 15-20 stocks.
Such portfolios increase the potential of higher returns, but can exacerbate the fall, making exits difficult for investors.