Strike it Big: Invest in High-Potential Midcap and Smallcap PMS Strategies

Investing in mid-cap and small cap stocks can be a great way to generate higher returns. However, with higher returns come greater risks, and investors need to be aware of the risks associated with this type of investing. This article will discuss the top mid-cap and small-cap Portfolio Management Services (PMS) strategies that could provide better returns. By understanding the potential risks and rewards associated with investing in these strategies, investors can make informed decisions to help them achieve high returns.

In 2022 not just the global market but Indian stock markets too witnessed high volatility. While stocks decreased in value during the first half of the year, they saw a significant increase in the latter half. However, not all stocks, particularly those in the small and mid-cap space, took part in the rally. Indices for larger companies performed better than those for small and mid-cap companies. Investment options such as ULIPs, mutual funds, Unit-Linked Insurance Plans, and PMS strategies also mirrored this trend. According to data from PMSBazaar, out of 300 Portfolio management services (PMS) strategies, 131 strategies had positive returns in 2022. The top-performing PMS strategies for the year, as shown by PMSBazaar data, were those that had a large allocation to small and mid-cap stocks. These strategies were able to achieve returns of up to 35% due to the careful selection of stocks.

Also Read: More about professionally managed funds

Highlights of some of the top-performing PMS strategies which focus on small-caps and mid-caps

All the data presented below for various PMS strategies taken from PMSBazaar.com

All the data presented below for various PMS strategies taken from PMSBazaar.com

• Molecule Ventures – Growth

Investment Objective: To achieve appreciation through long to medium-term investments in quality companies with strong growth prospects, mostly in the small and mid-cap space.

• Counter-Cyclical Investments – Diversified Long-Term Value

Investment Objective: To maximise profits for clients after duly adjusting the risks.

• ICICI Prudential – Value Strategy

Investment Objective: Invest funds for the long term with the expectation of capital growth through the value investment approach.

• Renaissance – Indianext Portfolio

Investment Objective: An investment strategy based on themes is followed.

• ICICI Prudential – Contra Strategy

Investment Objective: Invests in sectors not doing well currently and stocks available at their true value. 

• Fort Capital Investment Advisory – Value Fund

Investment Objective: Invests mainly in micro and small-cap stocks.

• Aequitas Investment Consultancy – India Opportunities Product

Investment Objective: Invests mainly in small-cap stocks for long-term wealth creation.

• Trivantage Capital Management – Focussed Corp Lenders (Plan B)

Investment Objective: Invests primarily in equity and equity-related securities of Indian Financial Institutions.

Also Read: More about various available investment options

Investing in small and mid-cap stocks through PMS strategies can be highly rewarding. However, investors must understand the risks associated with this type of investing. PMS strategies that focus on small-cap and mid-cap stocks were able to generate returns of up to 35%.

Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.