PMS Tracker: Quant, fintech strategies lead December gains of up to 8%; Kotak, Aequitas among top performers

A handful of quantitative, sectoral and multi-asset portfolio management services posted solid gains in December, even as a broad swath of smallcap and midcap strategies ended the month sharply lower, reflecting continued dispersion in India’s PMS market, according to data from PMS Bazaar.

East Green Advisors’ Quant Strategy emerged as the top performer for the month, delivering a return of 8.33%. The multi-cap and flexi-cap portfolio outpaced peers as markets rewarded systematic and factor-driven approaches during a volatile end to the year.

Kotak Mahindra Asset Management Company’s Fintech strategy followed with a gain of 5.15%, making it the best-performing sectoral portfolio in December. Aequitas Investment Consultancy’s India Opportunities Product, a small-cap-focused strategy, rose 5.07%, while Pace Financial Investment Adviser’s Tresor Flexi multi-asset portfolio returned 4.87% for the month. Ionic Asset Management’s Ionic Allocate Portfolio – Moderate added 4.80%.

Several diversified equity strategies also posted moderate gains. Merisis Advisors’ Catalyst Series 1 advanced 4.09%, MRG Investment Partners’ Wealth Maximizer gained 3.27%, and Ayan Analytics’ PriceBridge Honeycomb rose 3.22%. Wallfort PMS and Advisory Services’ Avenue Fund returned 3.17%, while ITUS Capital Advisors’ Fundamental Value Fund and Shriram Asset Management’s LEAPS each gained 3.11%.

Multi-asset and flexi-cap portfolios featured prominently among mid-tier gainers. ithought Financial’s SPHERE added 3.10%, Shriram AMC’s Future GEMS rose 3.09%, and MRG’s Wealth Enhancer and Wealth Protector portfolios gained 2.88% and 2.84%, respectively. Alchemy Capital’s long-running High Growth strategy ended December up 2.47%.

The concentration of gains among quant-driven, fintech-linked and diversified strategies contrasted sharply with the month’s steep drawdowns across several small-cap and thematic portfolios.

Bottom performers: small-cap portfolios slide

On the downside, Qode Advisors’ Future Horizon portfolio was the weakest performer in December, plunging 10.65%. Money Grow Asset’s Small Midcap strategy fell 9.49%, while InCred Asset Management’s Focused Healthcare Portfolio declined 7.47%.
Small-cap and SME-oriented strategies were particularly hard hit. Hem Securities’ India Rising SME Stars dropped 7.29%, and Wallfort PMS’s Diversified Fund slid 5.82%. Kotak Mahindra AMC’s Pharma and Healthcare strategy lost 5.66% during the month.
Several multi-cap portfolios also posted notable declines. Narnolia Financial Services’ Fusion Opportunity fell 5.56%, InCred’s Small and Midcap portfolio dropped 5.25%, and Samvitti Capital’s Active Alpha Multicap slid 5.00%. NAFA Asset Managers’ Clean Tech Portfolio declined 5.20%, while PGIM India’s Equity Portfolio ended December down 4.98%.

Other laggards included Fident Asset Management’s India Builder Equity portfolio, which slipped 4.97%, DRChoksey FinServ’s Alpha Invest, down 4.88%, and Samvitti Capital’s PMS Aggressive Growth, which fell 4.72%. InCred’s Multicap Portfolio declined 4.46%, and Nuvama Asset Management’s Equities eXpansion Target closed the month 4.43% lower.

Also read: Value buys? Worst-performing India market pushes 25 Nifty stocks below 5-year PE

December’s performance highlighted the uneven nature of returns within India’s PMS universe, with selective quantitative and sector-focused strategies finding traction, while small-cap and thematic portfolios bore the brunt of selling pressure as investors turned cautious toward year-end.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)