ALPHATALE

MONEY MANAGERS TO THE AFFLUENT DELIVERED ROBUST RETURNS TO INVESTORS IN THE PAST YEAR, THANKS TO THE BUOYANCY IN THE MARKETS. BUSINESS TODAY DECODES THEIR STRATEGY

- RAHUL OBEROI

99% Of PMS schemes delivered double-digit returns in the past 12 months till February 2024

5 Number of PMS schemes that have delivered more than 100% returns to HNIs

146,963 Number of PMS clients (discretionary) as of January 2024 compared to 106,535 five years ago

39.47% Returns delivered by the BSE 500 TRI in the past one year till February 2024

THE WEALTHY INVESTOR in India has never had it so good. For that, they must thank the robustness and resilience of the country's financial markets. And their money managers. While not a single portfolio manager catering to the affluent class in India saw a fall in their portfolios in the past 12 months till February 2024, almost 99% of portfolio management services (PMS) schemes delivered double-digit returns, mirroring the vitality of the benchmark BSE Sensex that surged 23%. The broader indices BSE MidCap and BSE SmallCap-advanced more than 60% each, providing support to multi-cap, flexi-cap, small- and mid-cap schemes, which delivered high returns to investors. In fact, the Top 5 alpha generators recorded gains of more than 100%. Fund managers say the domestic equity market will deliver similar performance in the long run, with the market sentiment being buoyed by the robust economy and the government's thrust on capex. Alpha returns are returns higher than the benchmark index.

Despite the stiff minimum investment of ₹50 lakh, the PMS space has been gaining momentum-visible in the rising assets under management (AUM). According to markets regulator Securities and Exchange Board of India (Sebi), the AUM of the PMS industry has grown by 438% to over ₹6.2 lakh crore as of January 2024 from ₹1.15 lakh crore at the end of FY15.

THE WINNING STRATEGIES