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Making money for wealthy: 26 portfolio management schemes beat Nifty in 2019

Money Control, Dec 27, 2019

The market is likely to hit new highs in 2020, and Nifty could touch levels of around 13,000-14,000, suggest experts.

2019 will go down in history as a year when both Sensex and Nifty clocked record highs, and the ultra-rich grabbed the opportunity with both hands. Over 30 portfolio management schemes (PMS) outperformed Nifty50.

Nifty50 has risen around 13 percent so far in 2019, and as many as 26 PMS schemes across categories have managed to outperform in the same period, showed data from PMS Bazaar.

Although the benchmark index for each scheme could be different depending on the nature of the strategy.

Portfolio Management Schemes (PMSes) cater to wealthy investors with portfolio sizes exceeding Rs 50 lakh. The professional fee charged by them is slightly higher than regular mutual funds (MFs).

PMS schemes run by leading portfolio managers and boutique wealth management firms managing money for the ultra-rich gave as much as 27 percent return so far in the year 2019 – this is almost double what

Nifty50 generated in the same period.

Data for PMS schemes for the period December 31, 2018, to November 30, 2019, highlighted that Stallion Asset’s Core Fund theme which is a multi-cap strategy generated 26.70 percent return so far in 2019, data showed.

Stallion Asset is managed by Amit Jeswani who has over 14 years of experience of investing in capital markets. The strategy is to catch long-term trends, which can compound capital at healthy rates, keeping in the mind the India opportunity.

The next top-performing scheme is also from the Multicap space. IIFL Multicap PMS scheme generated 24 percent return for ultra-rich so far in 2019, followed by Marcellus Consistent Performers, and Sanctum Wealth which generated over 20 percent each.

In the large-cap space, the Sanctum Wealth scheme ‘Indian Olympics’ generated 21 percent returns maximum among the schemes in the large-cap space.

The India Olympics scheme is a large-cap-oriented strategy that focuses on investing in high-quality companies with long-term sustainable growth, driven by dominant leadership positions in their respective segments.

Outlook 2020:

The market is likely to hit new highs in 2020, and Nifty could touch levels of around 13,000-14,000, suggest experts. Hence, is someone is planning to enter markets at current levels, there is some upside left, they say.

“The year 2020 should be the year of revival when we actually start witnessing a revival in GDP growth rate. The policy actions taken by the government should start yielding results. So, it is very likely that 2020 will be better than 2019,” Naveen Kumar, Head of Research, Reliance Securities told Moneycontrol.

“Our April 2020 target for Nifty 50 index is 12,800 and December 2020 Nifty 50 index target is 13,900. Our December target is based on 19x FY21 Nifty 50 earnings,” he said.

Dinesh Rohira, Founder & CEO at 5nance.com is of the view that 2020 will do better as average growth will bottom out and revenues will improve better for superior businesses.

“Besides broader markets have already tested investor patience for close to 2 years now. We expect Nifty to increase with the growth of 11% so a year-end target of 13400 looks achievable,” he said.

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