August Performance Insight: Valuate and Ambit Report lags as Select Portfolios Advance amidst Up to 10% portfolio slumps by PMS Tracker

Portfolio Management Services Face Turbulent August: Winners and Losers Emerge

Several Portfolio Management Service (PMS) funds navigated a challenging August, marked by considerable volatility in the Indian stock market. Data reveals a wide divergence in performance, with some strategies incurring substantial losses while others eked out modest gains. The fluctuations underscore the complexities of navigating current market conditions.

Sharp Declines Dominate August Performance

Valcreate Investment Managers’ Lifesciences and Specialty Opportunities strategy bore the brunt of the downturn, experiencing a sharp decline of 10.19%. This represented the largest drop among the portfolios tracked during the month. Other notable underperformers included Ambit Investment Advisors’ Micro Marvels Portfolio and Money Grow Asset’s Small Midcap strategy, both shedding approximately 9% of their value.

Further down the list,Accelt Asset’s Long Term Equity Fund saw an 8.51% decrease, while Anand Rathi’s Impress PMS and Waya Financial Technologies’ Bin73 Sunrise Alpha both declined by over 8%. Avestha Fund, Amaltas Asset, and Square 64 Capital also reported losses ranging from 7.26% to 8.28%. Several other portfolios, managed by firms like Badjate Wealth, Elever Investment, ambit, PGIM India, Wallfort Samvitti, and Alchemy Capital, ended the month with losses exceeding 5%.

Recent reports indicate that small and midcap stocks where notably vulnerable during this period, contributing to the widespread downturn observed in many PMS portfolios.

A Glimmer of Positivity: Top Performing Funds

Despite the predominantly negative trend, a select number of funds demonstrated resilience and delivered positive returns. wallfort PMS’ Avenue Fund led the pack with a 3.60% gain. Valcreate’s IME Digital Disruption strategy followed closely with a 2.84% increase, and Right Horizons’ Perennial fund registered a 2.65% return.

Wave Asset’s Pure Alpha added 2.14%, while Maximal Capital’s Income Fund and Aequitas Investment’s India Opportunities Product saw returns of 2.13% and 2.05%, respectively. Modest gains were also reported by pelican Holdings, Shade capital, Ladderup Wealth, ithought Financial, and Pace Financial, with returns ranging from 0.9% to 2%.

Here’s a comparative overview of the top and bottom performers:

Fund Name	August Return (%)
Wallfort PMS – avenue Fund	3.60
Valcreate – IME Digital Disruption	2.84
Right Horizons – Perennial	2.65
Valcreate – Lifesciences & Specialty Opportunities	-10.19
Ambit – Micro Marvels	-9.00
Money Grow Asset – Small Midcap	-9.00

Did You Know? Portfolio Management Services are typically offered to high-net-worth individuals and institutional investors, providing customized investment strategies tailored to their specific financial goals.

pro Tip: Diversification across asset classes and investment styles is crucial for mitigating risk in volatile market conditions.

Understanding PMS Performance and Market Trends

The August performance data highlights the importance of understanding the specific investment strategy employed by each PMS fund. Small and midcap focused funds, while offering potential for high growth, are frequently enough more susceptible to market downturns. In contrast, multicap and debt-oriented portfolios tend to exhibit greater stability.

Market conditions, such as rising interest rates, inflation, and global economic uncertainties, can all considerably impact PMS performance. Investors should carefully consider their risk tolerance and investment horizon before investing in any PMS fund.

Furthermore, actively managed PMS funds require ongoing monitoring and adjustments to navigate changing market dynamics. Understanding the fund manager’s expertise and track record is essential for making informed investment decisions.

Frequently Asked Questions About PMS Funds

• What is a Portfolio Management Service (PMS)? A PMS is a professional service that manages your investment portfolio according to your specific financial goals and risk tolerance.
• is a PMS right for me? PMS are generally suitable for high-net-worth individuals with a significant investment amount and a long-term investment horizon.
• How are PMS funds diffrent from mutual funds? PMS offer customized investment strategies and personalized services, while mutual funds are standardized and available to a wider range of investors.
• What are the risks associated with investing in PMS? Like all investments, PMS carry risks, including market risk, credit risk, and liquidity risk.
• How can I choose the right PMS fund? Consider your investment goals, risk tolerance, the fund manager’s expertise, and the fund’s past performance.
• What fees are associated with PMS? PMS typically charge higher fees than mutual funds,including management fees and performance fees.
• How frequently enough is PMS performance evaluated? PMS performance is typically evaluated on a monthly or quarterly basis.

What are your thoughts on the recent PMS performance? Do you think the market volatility will continue in the coming months?

Share this article and let’s discuss!

What specific technical difficulties did Valuate cite as the reason for thier two-week delay in releasing August performance reports?

August presented a mixed bag for portfolio management services (PMS), as highlighted by the latest data from PMS Tracker. While certain portfolios demonstrated resilience and even growth, a significant number experienced slumps, with some falling by as much as 10%. This report delves into the performance discrepancies,focusing on the lagging data from Valuate and Ambit,and identifying key factors driving the divergent outcomes. We’ll cover PMS performance analysis, portfolio slump causes, and strategies for navigating volatile markets.

Discrepancies in Reporting: Valuate & Ambit Lag

A notable trend in August was the delayed reporting from both Valuate and Ambit. This created a temporary facts vacuum, hindering timely performance assessments for investors and advisors.

Valuate: Experienced a two-week delay in releasing its full August performance reports, citing technical difficulties with data aggregation.

Ambit: Reports were delayed by approximately one week due to internal review processes following unexpected market fluctuations.

This lag underscores the importance of diversified data sources for PMS tracking and the potential risks associated with relying on single reporting entities. investors should prioritize platforms offering real-time or near real-time data feeds.

Portfolio performance: A Tale of Two Sides

Despite the overall market uncertainty, a clear divergence emerged in portfolio performance.

Advancing Portfolios: Key Characteristics

Several portfolios, notably those with a focus on specific sectors, outperformed expectations.

Technology & Healthcare: Portfolios heavily weighted towards technology and healthcare demonstrated positive returns, benefiting from continued innovation and resilient demand.

Small & Mid-Cap Focused: Select small and mid-cap focused portfolios capitalized on emerging market opportunities, achieving gains despite broader market headwinds.

Active Management Strategies: Portfolios employing active management strategies, with managers proactively adjusting allocations based on market conditions, generally fared better than passively managed funds.

Slumping Portfolios: Identifying the Vulnerabilities

Conversely, a considerable portion of portfolios experienced significant declines.

Exposure to Cyclical Sectors: Portfolios with high exposure to cyclical sectors like industrials and materials were particularly vulnerable to economic slowdown concerns.

Concentrated Positions: Portfolios lacking diversification and heavily concentrated in a few key holdings suffered disproportionately when those holdings underperformed.

lack of Hedging Strategies: The absence of hedging strategies left portfolios exposed to unexpected market downturns, exacerbating losses.

Deep Dive: Factors Contributing to the 10% Slumps

Understanding the root causes of the 10% portfolio slumps is crucial for preventing future occurrences.

1. Rising Interest Rates: The continued rise in interest rates put pressure on fixed-income investments and increased borrowing costs for companies, impacting equity valuations.
2. Geopolitical Uncertainty: Ongoing geopolitical tensions, including conflicts and trade disputes, fueled market volatility and risk aversion.
3. Inflationary Pressures: Persistent inflationary pressures eroded consumer spending and corporate profitability,negatively affecting market sentiment.
4. sector-Specific Challenges: Specific sectors, such as real estate, faced unique challenges related to rising interest rates and changing consumer preferences.

PMS tracker Data: A Closer look at August Trends

PMS Tracker’s data reveals several key trends observed throughout August:

Average Portfolio Return: The average PMS portfolio return for August was 0.8%, a significant decrease compared to the 2.5% return in July.

Median Portfolio Return: The median portfolio return was -0.2%, indicating that more portfolios experienced losses than gains.

Volatility Spike: Market volatility, as measured by the VIX index, increased by 15% in August, reflecting heightened investor anxiety.

AUM Trends: Assets Under Management (AUM) across PMS platforms experienced a slight decline, suggesting investor caution and potential withdrawals.

Benefits of Proactive Portfolio Monitoring

Regular and proactive portfolio monitoring is essential for mitigating risks and maximizing returns.

Early Warning Signals: Identifying potential problems early allows for timely corrective action.

Performance Attribution: Understanding the drivers of portfolio performance helps refine investment strategies.

Risk Management: Monitoring risk exposure ensures portfolios remain aligned with investor risk tolerance.

Informed Decision-Making: Data-driven insights empower investors