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
StockPMS CountMin %Max %Avg %
HDFC BANK473.5012.737.66
RELIANCE INDUSTRIES331.2613.977.83
ICICI BANK292.6019.806.80
BHARTI AIRTEL271.229.225.71
HINDUSTAN UNILEVER210.9110.425.30
ASIAN PAINTS201.6611.005.30
KOTAK MAHINDRA BANK202.1218.206.75
BAJAJ FINANCE182.5631.027.86
INFOSYS162.028.335.58
AARTI INDUSTRIES132.0429.757.93
ITC131.4212.005.57
HOUSING DEVELOPMENT FINANCE CORPORATION131.119.055.74
DIVIS LABORATORIES123.536.845.87
ICICI LOMBARD GENERAL INSURANCE COMPANY120.9113.705.61
TITAN COMPANY112.188.573.96
PIDILITE INDUSTRIES110.3311.006.17
AXIS BANK111.4113.704.73
CUMMINS INDIA101.454.502.91
SUN PHARMACEUTICALS INDUSTRIES102.0816.505.44
SANOFI INDIA103.509.006.88
Highest Single Business Ownership in PMSes
Stock%
BAJAJ FINANCE31.02
AARTI INDUSTRIES29.75
NIPPON INDIA ETF LIQUID BEES26.51
BRITANNIA INDUSTRIES22.00
JK PAPER20.45
ALKYL AMINES CHEMICALS19.80
ICICI BANK19.80
FORTIS HELATHCARE19.53
KOTAK MAHINDRA BANK18.20
SUN PHARMACEUTICALS INDUSTRIES16.50
GMM PFAUDLER16.50
GRANUELS INDIA16.00
VAIBHAV GLOBAL15.00
SCHAEFFLER INDIA14.72
HDFC LIFE INSURANCE COMPANY14.40
MUTHOOT FINANCE14.00
RELIANCE INDUSTRIES13.97
NESTLE INDIA13.76
AXIS BANK13.70
ICICI LOMBARD GENERAL INSURANCE COMPANY13.7
Lowest Single Business Ownership in PMSes
Stock%
SHOPPERS STOP0.30
FORCE MOTORS0.31
GREAVES COTTON0.33
VESUVIUS INDIA0.40
CENTURY ENKA0.50
GALAXY SURFACTANTS0.57
TCNS CLOTHING CO0.59
AKZO NOBEL INDIA0.68
SHALBY0.78
CARE RATINGS0.93
MAHINDRA AND MAHINDRA FINANCIAL SERVICES0.95
JOHNSON CONTROLS-HITACHI AIR CONDITIONING INDIA0.97
GLENMARK PHARMACEUTICALS1.00
LAURUS LAB1.00
VARIANT ORGANICS1.19
ISGEC HEAVY ENGINEERING1.20
KPIT TECHNOLOGIES1.30
TATA POWER CO1.36
BALAJI AMINES1.43
AMARA RAJA BATTERIES1.47
20 Most Preferred Sectors of Portfolio Managers across PMSes
SectorPMS CountMin%Max%Avg%
BANKING / FINANCIAL SERVICES961.1141.3018.02
PHARMACEUTICALS484.5054.2013.63
IT - SOFTWARES/SERVICES/CONSULTING400.2417.009.57
INDUSTRIALS322.1327.5011.59
CONSUMER DISCRETIONARY281.1831.9212.91
MATERIALS240.8030.0012.60
ENERGY221.3027.0010.29
CHEMICALS191.9325.6011.72
CONSUMER STAPLES184.1728.1012.86
FMCG182.9029.809.71
HEALTH CARE167.6032.3013.97
OIL & GAS152.0020.288.78
CONSUMER DURABLES142.5031.0011.12
AUTOMOBILE & ANCILLARIES133.4916.317.95
HEALTHCARE134.1825.0011.42
SPECIALITY CHEMICALS124.0034.0021.94
TELECOM121.7913.005.49
AUTOMOBILE112.0014.006.60
NBFC102.0330.1311.55
RETAIL93.7414.608.60
20 PMSes with high cash levels ( Not Fully Invested )
Portfolio Management ServicesCategoryCash %
Valcreate Investment Managers Life Sciences and Specialty Opportunities StrategyMid & Small Cap46.37%
Green Portfolio MNC Advantage FundMid & Small Cap43.60%
Asit C Mehta Ace AllocatorMulti Cap35.70%
Credent Asset Growth Portfolio*Multi Cap34.00%
Asit C Mehta Ace MidcapMid & Small Cap31.90%
Prabhudas Liladher Fortune StrategyMid & Small Cap30.60%
Turtle Wealth Management Pvt. Ltd.- 212 ° Wealth MantraMulti Cap27.04%
Green Portfolio Dividend YieldMulti Cap25.68%
Asit C Mehta ACE Regular IncomeMulti Cap23.30%
Asit C Mehta Ace 15Large Cap23.20%
Acepro Advisors Galaxy StrategyMulti Cap22.56%
QRC Investment Advisors LLP Long Term OpportunitiesMid & Small Cap22.00%
Centrum MicrocapMid & Small Cap21.00%
MOAT Satvik PortfolioMulti Cap21.00%
TATA Capital Emerging Opportunities StrategyMid & Small Cap20.20%
Tamohara TLESMid & Small Cap19.49%
Tamohara TIOSMulti Cap19.18%
TATA Capital ACTMulti Cap18.10%
Centrum Wealth CreatorMulti Cap18.00%
Phillip Capital Signature India PortfolioMulti Cap17.81%
20 PMSes with low cash levels ( Fully Invested )
Portfolio Management ServicesCategoryCash %
Emkay Lead PMS*Multi Cap0.03%
Emkay 12Large Cap0.13%
Equirus Long Horizon FundMid & Small Cap0.15%
Asit C Mehta Ace 50Large Cap0.20%
Trivantage Capital Resurgent Financials Equity StrategyLarge Cap0.30%
Aditya Birla Money Core & SatelliteMulti Cap0.50%
Purnartha Research and Advisory*#Multi Cap0.50%
Aditya Birla Top 200 Core Equity PortfolioLarge Cap0.63%
Narnolia India 3TMulti Cap0.70%
WHITE OAK India Pioneers EquityMulti Cap0.80%
ASK Growth StrategyMulti Cap0.98%
Asit C Mehta ACE MulticapMulti Cap1.10%
WHITE OAK India Equity PortfolioMulti Cap1.90%
ASK India Select Portfolio (ISP)Multi Cap1.95%
Marcellus Consistent CompoundersLarge Cap2.00%
Nippon India High ConvictionMulti Cap2.00%
ABANS Smart Beta PortfolioMid & Small Cap2.00%
ASK Indian Entrepreneur Portfolio (IEP)Multi Cap2.03%
Kotak Special Situations Value IMulti Cap2.50%
TATA Capital Blue Chip Plus StrategyLarge Cap2.60%

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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.

Wish to make INFORMED INVESTMENTS for Long Term WEALTH CREATION

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