Consistency + Quality = Compounding

Retail Participation to the Indian Equity market has surged to 15 years high. These levels were last seen during the midpoint of the historical bull run of 2003-2007. At present around 70% of daily equity market volume is driven by retail investors and the remaining 30% is driven by foreign institutional investors, mutual funds, and insurance companies.

The retail volume comprises of 3 types – intra-day trades, delivery based trades, long term stock pickers. Markets off-late have been supporting, all 3 types of retail investors, however, only a few who will stick to quality and will hold for the long term, will experience Wealth Creation. It is easier said than done.

Owing to fear and greed, the human mind plays a trick, and as a result, as investors see some profits, they exit quality from their self-managed portfolios, what is left is mediocre or poor quality shares in the self-managed portfolio and to make it worse, these are held for a long term, and hence, instead of wealth creation, what is experienced is wealth destruction.

What is essential in long term wealth creation is buying quality businesses and holding them for a longer period of time. So, it’s not just a few trades, It’s about compounding which is achieved through disciplined long term investing( i.e. Quality + Consistency = Compounding). This is exactly what Portfolio Management Services (PMS) aim at– whereby quality businesses are held for a considerably longer period of time leading to stupendous wealth creation. We present the top 20 holdings across PMS as a case in point where the fund managers despite a sharp rally in stocks have continued to hold the same businesses for a longer time across March, April, May, June and ….likewise in Long term

20 Most Owned Businesses in Portfolio Management Services
Stock PMS Count Min % Max % Avg %
HDFC BANK 47 3.50 12.73 7.66
RELIANCE INDUSTRIES 33 1.26 13.97 7.83
ICICI BANK 29 2.60 19.80 6.80
BHARTI AIRTEL 27 1.22 9.22 5.71
HINDUSTAN UNILEVER 21 0.91 10.42 5.30
ASIAN PAINTS 20 1.66 11.00 5.30
KOTAK MAHINDRA BANK 20 2.12 18.20 6.75
BAJAJ FINANCE 18 2.56 31.02 7.86
INFOSYS 16 2.02 8.33 5.58
AARTI INDUSTRIES 13 2.04 29.75 7.93
ITC 13 1.42 12.00 5.57
HOUSING DEVELOPMENT FINANCE CORPORATION 13 1.11 9.05 5.74
DIVIS LABORATORIES 12 3.53 6.84 5.87
ICICI LOMBARD GENERAL INSURANCE COMPANY 12 0.91 13.70 5.61
TITAN COMPANY 11 2.18 8.57 3.96
PIDILITE INDUSTRIES 11 0.33 11.00 6.17
AXIS BANK 11 1.41 13.70 4.73
CUMMINS INDIA 10 1.45 4.50 2.91
SUN PHARMACEUTICALS INDUSTRIES 10 2.08 16.50 5.44
SANOFI INDIA 10 3.50 9.00 6.88
Highest Single Business Ownership in PMSes
Stock %
BAJAJ FINANCE 31.02
AARTI INDUSTRIES 29.75
NIPPON INDIA ETF LIQUID BEES 26.51
BRITANNIA INDUSTRIES 22.00
JK PAPER 20.45
ALKYL AMINES CHEMICALS 19.80
ICICI BANK 19.80
FORTIS HELATHCARE 19.53
KOTAK MAHINDRA BANK 18.20
SUN PHARMACEUTICALS INDUSTRIES 16.50
GMM PFAUDLER 16.50
GRANUELS INDIA 16.00
VAIBHAV GLOBAL 15.00
SCHAEFFLER INDIA 14.72
HDFC LIFE INSURANCE COMPANY 14.40
MUTHOOT FINANCE 14.00
RELIANCE INDUSTRIES 13.97
NESTLE INDIA 13.76
AXIS BANK 13.70
ICICI LOMBARD GENERAL INSURANCE COMPANY 13.7
Lowest Single Business Ownership in PMSes
Stock %
SHOPPERS STOP 0.30
FORCE MOTORS 0.31
GREAVES COTTON 0.33
VESUVIUS INDIA 0.40
CENTURY ENKA 0.50
GALAXY SURFACTANTS 0.57
TCNS CLOTHING CO 0.59
AKZO NOBEL INDIA 0.68
SHALBY 0.78
CARE RATINGS 0.93
MAHINDRA AND MAHINDRA FINANCIAL SERVICES 0.95
JOHNSON CONTROLS-HITACHI AIR CONDITIONING INDIA 0.97
GLENMARK PHARMACEUTICALS 1.00
LAURUS LAB 1.00
VARIANT ORGANICS 1.19
ISGEC HEAVY ENGINEERING 1.20
KPIT TECHNOLOGIES 1.30
TATA POWER CO 1.36
BALAJI AMINES 1.43
AMARA RAJA BATTERIES 1.47
20 Most Preferred Sectors of Portfolio Managers across PMSes
Sector PMS Count Min% Max% Avg%
BANKING / FINANCIAL SERVICES 96 1.11 41.30 18.02
PHARMACEUTICALS 48 4.50 54.20 13.63
IT - SOFTWARES/SERVICES/CONSULTING 40 0.24 17.00 9.57
INDUSTRIALS 32 2.13 27.50 11.59
CONSUMER DISCRETIONARY 28 1.18 31.92 12.91
MATERIALS 24 0.80 30.00 12.60
ENERGY 22 1.30 27.00 10.29
CHEMICALS 19 1.93 25.60 11.72
CONSUMER STAPLES 18 4.17 28.10 12.86
FMCG 18 2.90 29.80 9.71
HEALTH CARE 16 7.60 32.30 13.97
OIL & GAS 15 2.00 20.28 8.78
CONSUMER DURABLES 14 2.50 31.00 11.12
AUTOMOBILE & ANCILLARIES 13 3.49 16.31 7.95
HEALTHCARE 13 4.18 25.00 11.42
SPECIALITY CHEMICALS 12 4.00 34.00 21.94
TELECOM 12 1.79 13.00 5.49
AUTOMOBILE 11 2.00 14.00 6.60
NBFC 10 2.03 30.13 11.55
RETAIL 9 3.74 14.60 8.60
20 PMSes with high cash levels ( Not Fully Invested )
Portfolio Management Services Category Cash %
Valcreate Investment Managers Life Sciences and Specialty Opportunities Strategy Mid & Small Cap 46.37%
Green Portfolio MNC Advantage Fund Mid & Small Cap 43.60%
Asit C Mehta Ace Allocator Multi Cap 35.70%
Credent Asset Growth Portfolio* Multi Cap 34.00%
Asit C Mehta Ace Midcap Mid & Small Cap 31.90%
Prabhudas Liladher Fortune Strategy Mid & Small Cap 30.60%
Turtle Wealth Management Pvt. Ltd.- 212 ° Wealth Mantra Multi Cap 27.04%
Green Portfolio Dividend Yield Multi Cap 25.68%
Asit C Mehta ACE Regular Income Multi Cap 23.30%
Asit C Mehta Ace 15 Large Cap 23.20%
Acepro Advisors Galaxy Strategy Multi Cap 22.56%
QRC Investment Advisors LLP Long Term Opportunities Mid & Small Cap 22.00%
Centrum Microcap Mid & Small Cap 21.00%
MOAT Satvik Portfolio Multi Cap 21.00%
TATA Capital Emerging Opportunities Strategy Mid & Small Cap 20.20%
Tamohara TLES Mid & Small Cap 19.49%
Tamohara TIOS Multi Cap 19.18%
TATA Capital ACT Multi Cap 18.10%
Centrum Wealth Creator Multi Cap 18.00%
Phillip Capital Signature India Portfolio Multi Cap 17.81%
20 PMSes with low cash levels ( Fully Invested )
Portfolio Management Services Category Cash %
Emkay Lead PMS* Multi Cap 0.03%
Emkay 12 Large Cap 0.13%
Equirus Long Horizon Fund Mid & Small Cap 0.15%
Asit C Mehta Ace 50 Large Cap 0.20%
Trivantage Capital Resurgent Financials Equity Strategy Large Cap 0.30%
Aditya Birla Money Core & Satellite Multi Cap 0.50%
Purnartha Research and Advisory*# Multi Cap 0.50%
Aditya Birla Top 200 Core Equity Portfolio Large Cap 0.63%
Narnolia India 3T Multi Cap 0.70%
WHITE OAK India Pioneers Equity Multi Cap 0.80%
ASK Growth Strategy Multi Cap 0.98%
Asit C Mehta ACE Multicap Multi Cap 1.10%
WHITE OAK India Equity Portfolio Multi Cap 1.90%
ASK India Select Portfolio (ISP) Multi Cap 1.95%
Marcellus Consistent Compounders Large Cap 2.00%
Nippon India High Conviction Multi Cap 2.00%
ABANS Smart Beta Portfolio Mid & Small Cap 2.00%
ASK Indian Entrepreneur Portfolio (IEP) Multi Cap 2.03%
Kotak Special Situations Value I Multi Cap 2.50%
TATA Capital Blue Chip Plus Strategy Large Cap 2.60%

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We have been sharing a Cautiously OPTIMISTIC stance since April 2020, as the month of March had actually led markets to oversold levels even in the high-quality segment of the market. While we continue to maintain the same stance, we would like to re-iterate we have always maintained, that the ultimate aim of investing should be wealth creation which requires two significant factors, one, long term horizon ( 10 years ), and second, consistent compounding. Both of these factors are only possible if one focuses on investing in high-quality businesses.

How WE add VALUE

PMS AIF WORLD is a New Age Wealth Management Firm backed by analysis & content. We are delivering an excellent experience of INFORMED INVESTING in focused and concentrated portfolios that are managed by highly experienced money managers.

It is in our genesis to suggest investors the right and the best investment avenue, suitable to investor’s risk profile. We are very selective in our approach, and analyze products across 4 Ps – Philosophy, Performance, Portfolio, and Price with an endeavor to ascertain the Quality, Risk, and Consistency(QRC) attributes before suggesting the same to investors.

We offer responsible, long term, analytics backed quality investment service.

If you are looking to invest and are not able to decide between PMS and Mutual Funds, or between PMS and Alternative investment funds, book an appointment with our experts.

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