A recent report from PMS Bazaar has shed light on the stellar performance of Portfolio Management Services (PMS) funds, a favorite among high net worth individuals (HNIs). The study compared the performance of 335 PMS funds with 388 regular mutual funds over various timeframes, unveiling a consistent trend of PMS funds outperforming their counterparts.
PMS Triumphs Over Mutual Funds:
The findings of the report indicate that PMS funds have surpassed mutual funds by an average of 70% across all timeframes and categories evaluated. Notably, in the 5-year period, 59% of PMS investment approaches outperformed their benchmarks, outpacing mutual funds by a considerable margin.
Thematic Funds Lag Behind:
While PMS excelled across most categories in the 3-year window, thematic funds were an exception. Mutual funds outperformed both benchmarks and PMS investment approaches by 59% in this specific category. However, PMS small-cap and midcap approaches showcased impressive performances, surpassing benchmarks by 91% and 84%, respectively.
Large-Mid Leadership for Mutual Funds:
Over the 5-year period, PMS investment approaches dominated in five out of seven categories, including large, mid, small, flexi, and multi-cap. However, mutual funds showcased strength in the large-mid and thematic categories.
Decade-Long Dominance of PMS:
The standout observation from the PMS Bazaar report was that over the 10-year period, all PMS investment approaches consistently outperformed mutual funds and benchmarks. This prolonged track record reinforces the appeal of PMS funds among high net worth investors seeking sustained and superior returns.
