Most of the portfolio management service providers have delivered negative returns in the last one year, even though their performance over the three and five-year period has been better.
ICICI Prudential PMS Contra Strategy and ASK India Entrepreneurs portfolio, with AUM of ₹12,110 crore and ₹10,484 crore, have delivered absolute negative returns of 3 per cent and 9 per cent in the last one year ended September.
However, over five years these funds which following multi and flexi-cap strategy have given 28 per cent and 14 per cent CAGR (compounded annual growth rate), according to the data sourced from PMSBazar.
Similarly, following the same strategy White Oak Capital Management India Pioneers Equity and ValueQuest Platinum Scheme have delivered negative returns of 5 per cent and 13 per cent over one year, while over the 5 year period they returned 16 per cent and 19 per cent. Marcellus Investment Managers Consistent Compounders large-cap strategy has delivered negative return of 11 per cent over one year and positive 13 per cent in 5 years.
The small-cap strategy of Aequitas Investment India Opportunities Product, with ₹3,826 crore have given returns of 25 per cent and 32 per cent over 3 and 5 years period.
George Heber Joseph, CIO & CEO (Equity), ASK Investment Managers, said while the focus remains on generating superior returns through disciplined bottom-up stock selection, there are near-term uncertainties in terms of global interest rates, elections and geopolitical issues.
“The short-term underperformance can be attributed to sharp rally in lower-quality, high-beta and momentum-driven segments which we consciously avoid given our focus on business quality and earnings durability,” he said.
Moreover, there was temporary valuation compression in select high-quality names, particularly in sectors such as consumer and financials, where the fund remains constructively positioned because of sustained FII selling, said Joseph.
Prabhakar Kudva, Director and Principal Officer – Portfolio Management Service, Samvitti Capital, said the next one year should be significantly better than the last one as several issues that played out globally in the last 12 months are closer to resolution, including tariffs, trade deals and wars.
The stage is set for a cyclical rebound as India was one of the worst performing markets in the world over the last one year. Typically, PMS does better than MF in bull markets and worse in bearish phases since portfolio construction of PMS is more aggressive, with a higher proportion of small and mid-cap compared to MFs, he added.
“Specialised Investment Funds of MFs are a new product with certain portion of the portfolio hedged using derivatives so that they fall less in bear market. I do not see them as a competition to PMS in the way they are currently structured,” said Kudva.
Published on November 1, 2025
