More skin in the game can lift mutual fund performance
Synopsis
The adage gained popularity in India’s financial circles last week when the country’s capital markets regulator asked key officials of the mutual funds to invest at least 20 per cent of their salary or comprehensive compensation in the schemes they oversee from July.
The etymology of the phrase “Skin In The Game” investment by an insider is not clear.
Some say it was used to describe a horse owners’ stake in his own horse in derby races; Wall Street likes to believe that it came from Warren Buffett’s collection of metaphors. Regardless of its origin, the adage gained popularity in India’s financial circles last week when the country’s capital markets regulator asked key officials of the mutual funds to
NEW DELHI: Almost all portfolio management schemes (PMSes) delivered positive returns to their high networth investors in February, with many of them outperforming their respective benchmarks, as the domestic equity market continued to hit fresh record highs riding on superior earnings performance and supportive Budget announcements.
Midcap and smallcap-focused strategies were among the best performers, with eight out of the top 10 schemes on the performance chart coming from the two categories. Two multicap funds, one each from TCG Advisory and Hanut Alternate Investments, also figured on the leaderboard.
The best performer was Super Value strategy of Right Horizons, which primarily invests in midcaps. The strategy delivered nearly 22 per cent return for the month. In the last six months, it has gained 47 per cent.
Pre-Budget jitters pummel 70% PMSes into the red in January; large, multi-cap funds bleed the most
Basant Maheshwari Wealth Advisers Equity Fund was the biggest loser in January, dropping 8.09 percent on a month-on-month basis. February 10, 2021 / 12:25 PM IST
After three straight months of gains, Nifty showed signs of fatigue in January, especially in the second half of the month as investors turned cautious ahead of the Union Budget. A steep correction ensued and benchmarks dropped all of its monthly gains to end the month with a 2.48 percent loss. Broader markets were able to ride the storm much better than the frontliners as BSE Smallcap ended with marginal losses of 0.3 percent, while BSE Midcap ended with gains of 0.6 percent.
Stellar gains! Nearly 70% PMSes outperform Nifty in 2020; 6 funds in the red
Equirus Securities Long Horizon Fund was the top gainer in 2020, rising 61.55 percent year-on-year. January 22, 2021 / 12:34 PM IST
Calendar 2020 was a year of many firsts. The market went from record highs in the opening months to multi-year lows in March and back to record highs by the end of the year.
Despite the push and pull, the bulls managed to dig in, with the Nifty rising 14.9 percent during the year. The heavy lifting by the bulls was more apparent in the broader markets, as smallcap and midcap rose 21.9 percent and 32.1 percent, respectively. The BSE 500, often considered a proxy to corporate India, surged 16.8 percent during 2020.
44 PMS schemes outperform Nifty in December; mutli-cap funds lead the show
Negen Capital s Smallcap Emerging fund was the top gainer in December, rising 12.83 percent on a month-on-month basis January 13, 2021 / 03:46 PM IST
The Indian market ended calendar 2020 on a high with Nifty rising about 7.8 percent in December. In comparison, Smallcap and Midcap indices underperformed but still delivered strong returns at 7.2 percent and 5.7 percent, respectively.
Meanwhile, BSE 500, which is often considered a proxy to corporate India, surged 7.7 during December 2020
The stellar performance was also visible in the returns of Portfolio Management Schemes (PMSes) as all the strategies PMSBazaar.com looked at reported positive returns for the month. Smallcap and multicap funds led the charge logging double-digit returns in December.