Indian markets turned volatile, but bulls managed to push the Niftyt50 index higher by 2.1 per cent for the month of December while the smallcap stocks witnessed a steep rise in the same period, fueling returns for fund managers managing small and midcap themes.

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The S&P BSE Midcap index rose 1.1 per cent while the S&P BSE Smallcap index closed with gains of 5.4 per cent compared to 2.1 per cent rise seen in the Nifty50 in December.

Tracking gains in the broader market as many as 60 per cent of the Portfolio Management Schemes (PMSes) outperformed Nifty50 which reported their numbers for December, data from PMSBazaar.com showed.

Portfolio management services or PMS cater to high-net-worth investors and the professional fee charged by them is higher than regular mutual funds. However, it varies from scheme to scheme. As per SEBI norms, a PMS account can be opened and held, with a minimum corpus of Rs 50 lakhs.

Data from PMSBazaar.com shows that 157 out of 262 PMSes, which declared their monthly return, outperformed the Nifty in December and most of them were from the small and multi-cap segments.

Arihant AMC’s Electrum Laureate Portfolio was among the top funds which clocked over 10 per cent return in December compared to about 2.1 percent gain seen in the Nifty50, data from PMSBazaar.com showed.

The strategy primarily invests in companies from the small and midcap space. It has already given over 78 per cent return in the 1-year period, outperforming Nifty50 by a wide margin which was up 24 per cent in the same period.

Another smallcap focused fund - Reliance Wealth Management’s EBOP gave returns of 9.4 per cent, followed by Green Portfolio that rose 9.2 per cent and PRP Professional Edge gave returns of 9.2 per cent. Right Horizons gained 8.1 per cent.

Underperformers:

There are 18 PMSes that gave negative returns in December compared to 2.1 percent gains seen in the Nifty50 in the same period.

Sectors which failed to deliver returns were mostly Thematic, sectoral, and multicap themes.

Trivantage Capital Management’s Resurgent Financials Equity fund fell more than 4 per cent in December, PMSBazaar data showed. The fund which was setup in 2016 has given consistent returns since inceptions. It rose nearly 14 per cent in 2021.

ASK Investment Managers Financial Opportunities fund which is also based on the sectoral theme fell 3.4 per cent, followed by Marcellus Kings of Capital fund focused on banks, insurance companies, as well as NBFCs was down 3.2 per cent in December.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)