Here’s how portfolio managers for HNIs struggled to make money in Feb

The majority of portfolio managers for high-networth clients (HNIs) failed to deliver positive returns last month when the benchmark BSE Sensex cracked over 3 per cent. Broader indices BSE Midcap and Smallcap indices too tumbled around 5 per cent and 9 per cent, respectively.

Of late, war between Russia and Ukraine, rising raw material prices, including that of oil, and sustained selling by foreign institutional investors (FIIs) have weighed sentiment on Dalal Street. Overseas investors have been on a selling spree in India. They have sold shares worth over Rs 1.49 lakh crore since October 1 last year.

Data collated by PMS Bazaar showed that at least 260 PMS failed to keep their head above water. With a fall of 11.62 per cent, Centrum PMS’ Micro strategy emerged as the top loser in the list. It was followed by Equitree Capital Advisors’ Emerging Opportunities (down 11.39 per cent), Green Portfolio’s Super 30 (down 11.20 per cent), Moat Financial Services’ Aggressive Leaders Fund (down 11.15 per cent) and Centrum PMS’ Deep Value (down 11.06 per cent).

Portfolio management services, or PMS, is an investment management service offered by qualified portfolio managers. The minimum ticket size for PMS investment is Rs 50 lakh in India.

Global brokerage firm BofA Securities believes that the ongoing volatility in the domestic equity market is like to stay in 2022 due to geopolitical and other events on the horizon.

Sharing his advice with investors, B Gopkumar, managing director and chief executive officer, Axis Securities said, “Investors should focus on asset allocation and use this volatility to build long-term positions in quality large and midcap stocks as they become attractive after the recent correction and provide a good entry point.”

Data further highlighted that mid-cap and small-cap PMS strategies including Roha Asset Managers’ Emerging Champions, Nine Rivers Capital’s Aurum Small Cap Opportunities, Accuracap’s Dynamo, Centrum PMS’ Good To Great, Basant Maheshwari Wealth Advisers’ Equity Fund, Centrum PMS’ Multibagger, Master Portfolio Services’ Vallum India Discovery, Sageone’ Small & Midcap and Green Portfolio’s Dividend Yield schemes also declined between 9 per cent and 11 per cent in February.

On the other hand, Scient Capital’s Aries Mid Yield, Oro Asset Management’s All Weather Portfolio, Counter Cyclical Investment’s Long Term Value Investment, Karvy Capital’s Excel and Demeter schemes, Estee Advisors’ I-Alpha, InvAsset LLP’s Growth Pro Max Fund and Purnartha Investment Advisers’ Focussed Equity defied the gravity with a gain of between 0.01 per cent and 2.65 per cent.