Nifty50 touched a high of 17947.65 on 24 September. Since then it has shown an increase of around 3 per cent. It broke the 18,000 level on 11 October. However, the biggest performers of September were the schemes related to the small and midcap space, which are managed by Portfolio Management Services (PMS).
In the month of September, Nifty Mid Cap-100 and Nifty Small Cap-100 Index have performed better than Nifty-50. Mid and small cap indices had gained 7 per cent and 6 per cent during this period.
Most of the PMS which have performed better than Nifty. They belong to the small cap, mid cap and multi cap space. According to data available on PMSBazaar.com, an online portal that compares PMS, 140 out of 261 PMS schemes have outperformed Nifty-50 in September.
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What is PMS and who performed better
Explain that Portfolio Management Services or PMS manages the portfolios of wealthy investors whose portfolio size is more than Rs 50 lakh. Their fee structure is different from that of actual funds. PMS invests in the Indian equity market with a long term wealth creation perspective.
Top 5 PMS outperforming Nifty 50 are Invesco Asset Management’s Caterpillar Fund (9.97 percent return), Green Portfolio’s Dividend Yield Fund (9.93 percent), Arihant AMC’s Electrum Midsmallcap Fund (9.03 percent), Karma Capital Advisors The names of Long Only India Public Equity Fund (9%) and Vallum India Discovery Fund (8.55%) of Master Portfolio Services are included.
Broking houses increase the rating of these stocks, do you have any of these?
By looking at the holdings of these funds, we get an idea of which stocks the big fund managers are eyeing. One more thing to mention that this list of stocks should be seen only from the point of view of reference. This is not a purchase recommendation of any kind. Here we are giving a list of 25 stocks available on PMSBazaar.com for which PMS is kind.
Invesco Asset Management’s Caterpillar fund holdings include Tata Elxsi, TeamLease Services, Balkrishna Industries, Indian Railway Catering & Tourism Corporation and Sundaram Fasteners.
Arihant Asset Management’s Electrum Midsmallcap’s top holdings are Mastek, Apcotex Industries, Angel Broking, Mahindra Life Space Developers and Gufic Biosciences.
The top holdings of Karma Capital Advisors’ Long Only India Public Equity fund include Tata Communications, Zee Entertainment Enterprises, Tata Motors – DVR, Jubilant Pharmova and Cipla.
What should be the investment strategy in small and mid cap
Nifty Mid Cap 100 and Small Cap 100 have outperformed Nifty in 2021. So far in 2021, they have seen an increase of 51 percent and 58 percent respectively. On the other hand, the Nifty has seen a rise of only 21 percent in the same period. Ankit Yadav of Market Maestr says that the market capitalization of mid and small caps is much less as compared to large caps. Their business is also smaller than that of large companies. Due to which there is more fluctuation in their business. Due to which the risk for them is also higher.
Mutual funds have reduced their stake in these midcap stocks, know who are involved other than IRCTC
But at the same time, their growth prospects are also wide in the future. Due to which, despite the high risk, their chances of giving profits in the future are also high. Keeping this in mind, we recommend investors to invest in those small to mid-sized companies, which have a strong balance seat. Those who have enough cash and are almost debt free.
In this conversation, he further said that there is also the possibility of such companies later converting into large cap companies and becoming bluechip stocks. If an investor is able to identify such a stock, he can see his mid cap stock being converted into a bluechip stock. But keep in mind that it requires patience and time. For a good thing to flourish and reap the benefits of compounding, we have to stick with our investments for a long time. A better way to do this is to invest in such good stocks with a long view through SIP.
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