Analysis Report on Small Cap PMS As On June 2024

 

We came across a report very recently on small-cap PMS where it was being accentuated that the time was over for the small-cap PMS. The thought was generated from the point that as many as 41 of them gave negative returns in February. Well, a short-term slowdown should not be taken as a deciding factor for making investments in the long term. But unfortunately, we make these types of mistakes and we take the hit on our long-term investment plans. This report is just an analysis and not a recommendation since investors' risk profiles and other aspects of behavioral aspects of investments need to be taken into consideration.

Key Performance Metrics
 
1. 1-Month Performance
    Top Performers:
·       Hem Securities India Rising SME Stars: 23.8%
·       Equitree Capital Advisors Emerging Opportunities: 16.7%
·       Equirus Wealth Long Horizon Fund: 16.0%
 
2. 3-Month Performance
    Top Performers:
·       Equitree Capital Advisors Emerging Opportunities: 34.9%
·       Dynamic Equities Smallcap: 30.5%
·       Hem Securities India Rising SME Stars: 31.0%
 
3. 6-Month Performance
    Top Performers:
·       Alchemy Capital Management Smart Alpha Small and Micro Cap: 33.9%
·       Accuracap Dynamo: 28.3%
·       Equitree Capital Advisors Emerging Opportunities: 27.7%
 
4. 1-Year Performance
    Top Performers:
·       Accuracap Dynamo: 79.8%
·       Equitree Capital Advisors Emerging Opportunities: 86.0%
·       Counter Cyclical Investments Diversified Long Term Value: 60.9%
 
5. 2-Year Performance
    Top Performers:
·       Hem Securities India Rising SME Stars: 68.5%
·       Aequitas Investment Consultancy India Opportunities Product: 61.0%
·       Counter Cyclical Investments Diversified Long Term Value: 53.9%
 
6. 3-Year Performance
    Top Performers:
·       Counter Cyclical Investments Diversified Long Term Value: 50.9%
·       Aequitas Investment Consultancy India Opportunities Product: 40.0%
·       Molecule Ventures Growth: 55.7%
 
7. 5-Year Performance
    Top Performers:
·       Accuracap Dynamo: 35.9%
·       Aequitas Investment Consultancy India Opportunities Product: 32.6%
·       Nine Rivers Capital Holdings Aurum Small Cap Opportunities: 30.4%
 
8. Since Inception (SI) Performance
    Top Performers:
·       Counter Cyclical Investments Diversified Long Term Value: 64.1% (Since JUL-19)
·       O3 Securities Special Situations Portfolio: 58.6% (Since AUG-22)
·       Equitree Capital Advisors Emerging Opportunities: 28.7% (Since OCT-17)
  Analysis and Insights based on various metrics to get a clear idea about the performers from different angle of time frame and other metrics.

 1. High Consistency and Growth:
·       Equitree Capital Advisors Emerging Opportunities has shown high performance across multiple time periods, consistently ranking among the top performers.
·       Accura cap Dynamo and Counter Cyclical Investments Diversified Long Term Value also demonstrate strong returns, particularly over longer periods.
 
2. Recent Performers:
·       Hem Securities India Rising SME Stars and Dynamic Equities Smallcap  have shown exceptional short-term performance, indicating strong recent gains.
·       Alchemy Capital Management's Smart Alpha Small and Micro Cap fund is notable for its impressive 6-month performance.

 3. AUM Considerations:
 Funds with significant AUM, such as Aequitas Investment Consultancy India Opportunities Product and Equirus Wealth Long Horizon Fund, exhibit strong performance, indicating robust investment strategies and investor confidence.
 
4. Benchmark Comparison:
Funds benchmarked against the S&P BSE500 tend to perform better in this dataset compared to those benchmarked against the Nifty50, especially over longer periods.
 
The smallcap PMS segment demonstrates significant potential for high returns, especially for investors willing to engage in longer investment horizons. Funds like Equitree Capital Advisors Emerging Opportunities and Accuracap Dynamo stand out for their exceptional performance. Careful consideration of fund performance across various periods, along with benchmark comparison, is crucial for making informed investment decisions. Investors should always follow the Buyer Be Aware formula and should not blindly believe any financial advisor. Understanding the risk of PMS investment is key to successful wealth creation. If someone goes blindly then the risk of loosing all future investment capability might get tossed.