While Mutual Funds remain in media focus, PMS coverage remains elusive. PMS have big advantage over Mutual Funds as they offer greater flexibility to the fund managers in constructing their portfolios. The restrictions imposed by SEBI on Mutual Fund are benign in case of PMS. MFs are retail oriented investment vehicle and their strong surveillance by SEBI is justified. PMS are for HNIs who are supposed to be better advised and appreciate the inherent risks.
On 5 years basis, Nifty50 TRI Index delivered a CAGR of 13.65% p.a., while BSE500 TRI has yielded 13.98% p.a. In comparison, some PMS schemes have stood out in right stock selection. Here is a list of some PMS which have performed better than broader markets, ranked on 5 year basis.
Data as on 31st March 2020. Source : PMS Bazaar