Comparison & Review of Top Equity PMSs in India

Comparison & Review of Top Equity PMSs in India

PMS AIF
| Written by IME's Investor Desk on 20-Jun-22

Unlike Mutual Funds, where SEBI has come out with clear guidelines of % allocation towards large, mid & small-caps between different fund categories, no such clear guidelines exist in the case of PMS & AIF Funds. This can lead to confusion for investors, since 2 funds both defined as multi-cap or market-cap agnostic, may have very different allocations towards large, mid & small-cap companies.

In order to address this issue, at IME Capital we have broken down the multi-cap category, into 3 sub-categories - (a) Large & Mid-cap (b) Flexicap (c) Mid & Small-cap. All PMS's with a multi-cap approach, are slotted into one of these 3 sub-categories (based on actual portfolio compositions being followed), in order to provide a more like-to-like comparisons.

Top Large & Mid-Cap PMS/AIFs

IMEs Large & Mid-cap PMS category

Comprises schemes that have a minimal exposure to small-caps. The risk on such strategies are accordingly considerably less, than flexi-cap or mid & small cap strategies, where small-cap exposures can lead to higher volatilty.

PMSEQ - Large & Midcap
7.9
20.3
16.1
PMSEQ - Large & Midcap
14.3
PMSEQ - Large & Midcap
4.6
14.7
14.6
PMSEQ - Large & Midcap
8.9
14.1
PMSEQ - Large & Midcap
8.6
31.3
28.9
AIFEQ - Large & Midcap

Top Flexi-Cap PMS/AIFs

IMEs Flexi-cap category

Comprises schemes that have allocations to large, mid & small-caps and schemes that retain the flexibility of shifting allocations between these 3 market-cap segments. The risk on these strategies is higher than the large & mid-cap category, but this is typically compensated by the potential for higher returns driven by small-cap allocations.

PMSEQ - Flexicap / Multicap
5.5
19.5
20.5
PMSEQ - Flexicap / Multicap
15.6
18.9
22.5
PMSEQ - Flexicap / Multicap
18.2
23.8
26.7
PMSEQ - Flexicap / Multicap
2.3
18.9
25.8
PMSEQ - Flexicap / Multicap
4.3
19.7
17.7
PMSEQ - Flexicap / Multicap
5.4
18.2
17.6
PMSEQ - Flexicap / Multicap
20.7
24.9
19.9
PMSEQ - Flexicap / Multicap
16.1
26.3
26.4
PMSEQ - Flexicap / Multicap
9.8
19.7
18.4
PMSEQ - Flexicap / Multicap
11.4
PMSEQ - Flexicap / Multicap
1.8
13.3
16.8
PMSEQ - Flexicap / Multicap
8.3
22.7
19.7
PMSEQ - Flexicap / Multicap
4.8
23.3
22.3
AIFEQ - Flexicap / Multicap
AIFEQ - Flexicap / Multicap
AIFEQ - Flexicap / Multicap
-0.4
14.2
AIFEQ - Flexicap / Multicap
4.1
12
AIFEQ - Flexicap / Multicap
4.6
AIFEQ - Flexicap / Multicap
AIFEQ - Flexicap / Multicap
-10.7
25.8
24.6
AIFEQ - Flexicap / Multicap
18.8
22.4
AIFEQ - Flexicap / Multicap
8
AIFEQ - Flexicap / Multicap
-10.8
AIFEQ - Flexicap / Multicap
3.5
12.7
14.7
AIFEQ - Flexicap / Multicap
AIFEQ - Flexicap / Multicap
-2.7
20.2
18.6
AIFEQ - Flexicap / Multicap
8.1
27.2
AIFEQ - Flexicap / Multicap

Top Mid & Small-cap PMS/AIFs

IMEs Mid & Small-cap category

These are strategies where the majority of investments typically are in the small & mid-cap space, with a limited (20% or less) allocation towards large-caps. Some of these funds are often classified as multi-cap by the firm/other platforms, but given a relatively low share of large-caps the risk-rewards are clearly on the higher side relative to pure flexi-cap/multi-cap funds.

PMSEQ - Mid Cap
6.1
24.1
24.2
PMSEQ - Mid Cap
3.7
24.2
20
PMSEQ - Mid Cap
3.8
19.3
20.5
PMSEQ - Mid Cap
5.1
40.6
42.7
PMSEQ - Mid Cap
0.8
21.5
25
PMSEQ - Mid Cap
-3.5
27.4
28.9
PMSEQ - Mid Cap
-7
18
20.7
AIFEQ - Mid Cap
AIFEQ - Mid Cap
19.6
AIFEQ - Mid Cap

Top Small-cap PMS/AIFs

IMEs Small-cap category

Smallcaps clearly have the highest potential returns, given a large universe of relatively undiscovered companies and the greatest room for a small company to scale (relative to large-caps). This is however also a segment with the highest volatility in stock prices, stocks with low liquidity, often relatively under-developed corporate governance standards and business models that may not yet be fully developed. This category is accordingly suitable primarily for investors with a high risk-appetite and a willingness to deal with higher levels of volatility.

PMSEQ - Small Cap
-3.4
16.9
21.9
PMSEQ - Small Cap
-5.2
12.3
22.2
PMSEQ - Small Cap
-1.1
18.8
19.6
PMSEQ - Small Cap
3.3
23.9
27.4

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