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Economic Times
a day ago
- Business
- Economic Times
Alternative managers gaining ground: 70% of PMS capital now with non-institutional players, says Manish Bhandari
Edited excerpts: Kshitij Anand: I wanted to understand from you—the geopolitical environment is changing, and it's changing faster than we could have imagined. New tariff rules are coming in, and China is playing its own game. How do you think everything is shaping up at this point in time—good for India, bad for India? Live Events Kshitij Anand: And although there will be people at home who may not welcome or appreciate this India–China development—let's not get into that, as it's more political than financial—economically, we stand to benefit from the partnership? Kshitij Anand: Now, let's talk about sectors. How do you view the sectoral landscape for the next few years? What could be the alpha generators of the future? Kshitij Anand: We've seen new-age businesses gaining traction over the past few years. IPOs have slowed, but the SME space is booming—over 600 IPOs have been listed. Any new thematic businesses catching your eye? Kshitij Anand: On PMS—the industry has evolved rapidly, especially post-COVID, with significant inflows. We're also seeing new strategies launched frequently. Is this good or bad for the industry? (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel In an exclusive conversation with ETMarkets PMS Talk on the sidelines of the APMI conference in Mumbai, Manish Bhandari , CEO & Portfolio Manager at Vallum Capital, highlighted a transformative shift in India's portfolio management services (PMS) to Bhandari, who is also a Board Member of the Association of Portfolio Managers in India (APMI), nearly 70% of institutional capital in the PMS space is now managed by players without traditional institutional backing—a sign that investors increasingly trust independent and boutique managers over large fund attributes this trend to the sector's growing openness, diversity of strategies, and the 'democratization' of money management, where talent and performance are beginning to outweigh brand name and absolutely—and that's the beauty of the geopolitical landscape—it changes so fast. When Trump came in, everyone thought we would have an edge because of our long-standing relationship, but that has not materialised in terms of outcomes, and a different scenario is now interesting and brewing today, in my view, is a new, very solid economic partnership that's taking shape. There has always been a relationship between India and Russia, but now, with China, everything seems quite positive, and we are making inroads to create a favourable such a large economic bloc comes together, strong markets open up for each other, and cooperation increases. While there is a structural headwind until the tariff issue between India and the USA is resolved, there is also a structural long-term dividend if this partnership this morning, we heard that the National Security Advisor flew to Russia—such visits are now frequent and widely publicised. Perhaps the frustration in America is partly due to this new economic bloc being built. I deliberately use the word 'economic bloc' because my focus is on economic progress and structural changes—not cultural aspects—which are secondary. My sense is that Russia has played a key role in bringing India and China human brain holds on to baggage for a long time, but as the narrative changes, that baggage will also change. I believe this shift is happening before our eyes, and it's in both governments' interests to make it work. I see progress daily. As it surfaces on the front pages of newspapers, public perception will also can change overnight—10%, 20%, 25%—so making a definitive prognosis would require being smarter than the US President's tweets, which I'm not, and I'm sure none of us are. To make a compelling investment bet, you need two things: a rising sector and reasonable valuations. A great story with stretched valuations doesn't work. Infrastructure spending seems to have picked up again after a difficult election year. Cement looks promising. Healthcare also remains evergreen. The US still has significant dependence on Indian healthcare, so despite any market pushback, Indian companies have strong growth all of those 600 IPOs are new-age businesses. For me, 'new age' means traditional businesses enhanced by technology to grow faster and disrupt incumbents. These are scattered across small and midcaps, and need to be picked selectively. Auto ancillary is another 'old school' sector with new opportunities coming India's way. Currently, opportunities are dispersed across sectors—there's no single dominant theme like we saw in previous expansion of the market is always good for the industry—there is no second thought about it. There are a lot of strategies emerging because it is quite a democratic system where anyone who aspires to manage external or third-party money can get in today. Otherwise, for decades, the only platform left was to get a job in a mutual fund, and launching your own mutual fund was next to it is quite a democratic expression of investing—different strategies, different ways of looking at the market—everything keeps competition at a reasonably high level, and everyone can learn from each other. I think it is of the growth has also come from EPFO capital and less from retail capital. But one thing I can tell you, which is very interesting, is that if you look at the PMS industry and landscape, and the advisory capital that has been built, 70% of the institutional capital is given to people who have a non-institutional background. They are not backed by large mutual fund-type sets the context that people are giving money to individuals to manage—they are not just looking for institutions. So, individuals can make a remarkable difference.I see this trend coming up significantly, where institutional capital will look for PMS managers or alternative managers—something that has happened in other parts of the world as well.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Time of India
a day ago
- Business
- Time of India
Alternative managers gaining ground: 70% of PMS capital now with non-institutional players, says Manish Bhandari
Edited excerpts: Kshitij Anand: I wanted to understand from you—the geopolitical environment is changing, and it's changing faster than we could have imagined. New tariff rules are coming in, and China is playing its own game. How do you think everything is shaping up at this point in time—good for India, bad for India? Live Events Kshitij Anand: And although there will be people at home who may not welcome or appreciate this India–China development—let's not get into that, as it's more political than financial—economically, we stand to benefit from the partnership? Kshitij Anand: Now, let's talk about sectors. How do you view the sectoral landscape for the next few years? What could be the alpha generators of the future? Kshitij Anand: We've seen new-age businesses gaining traction over the past few years. IPOs have slowed, but the SME space is booming—over 600 IPOs have been listed. Any new thematic businesses catching your eye? Kshitij Anand: On PMS—the industry has evolved rapidly, especially post-COVID, with significant inflows. We're also seeing new strategies launched frequently. Is this good or bad for the industry? (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel In an exclusive conversation with ETMarkets PMS Talk on the sidelines of the APMI conference in Mumbai, Manish Bhandari , CEO & Portfolio Manager at Vallum Capital, highlighted a transformative shift in India's portfolio management services (PMS) to Bhandari, who is also a Board Member of the Association of Portfolio Managers in India (APMI), nearly 70% of institutional capital in the PMS space is now managed by players without traditional institutional backing—a sign that investors increasingly trust independent and boutique managers over large fund attributes this trend to the sector's growing openness, diversity of strategies, and the 'democratization' of money management, where talent and performance are beginning to outweigh brand name and absolutely—and that's the beauty of the geopolitical landscape—it changes so fast. When Trump came in, everyone thought we would have an edge because of our long-standing relationship, but that has not materialised in terms of outcomes, and a different scenario is now interesting and brewing today, in my view, is a new, very solid economic partnership that's taking shape. There has always been a relationship between India and Russia, but now, with China, everything seems quite positive, and we are making inroads to create a favourable such a large economic bloc comes together, strong markets open up for each other, and cooperation increases. While there is a structural headwind until the tariff issue between India and the USA is resolved, there is also a structural long-term dividend if this partnership this morning, we heard that the National Security Advisor flew to Russia—such visits are now frequent and widely publicised. Perhaps the frustration in America is partly due to this new economic bloc being built. I deliberately use the word 'economic bloc' because my focus is on economic progress and structural changes—not cultural aspects—which are secondary. My sense is that Russia has played a key role in bringing India and China human brain holds on to baggage for a long time, but as the narrative changes, that baggage will also change. I believe this shift is happening before our eyes, and it's in both governments' interests to make it work. I see progress daily. As it surfaces on the front pages of newspapers, public perception will also can change overnight—10%, 20%, 25%—so making a definitive prognosis would require being smarter than the US President's tweets, which I'm not, and I'm sure none of us are. To make a compelling investment bet, you need two things: a rising sector and reasonable valuations. A great story with stretched valuations doesn't work. Infrastructure spending seems to have picked up again after a difficult election year. Cement looks promising. Healthcare also remains evergreen. The US still has significant dependence on Indian healthcare, so despite any market pushback, Indian companies have strong growth all of those 600 IPOs are new-age businesses. For me, 'new age' means traditional businesses enhanced by technology to grow faster and disrupt incumbents. These are scattered across small and midcaps, and need to be picked selectively. Auto ancillary is another 'old school' sector with new opportunities coming India's way. Currently, opportunities are dispersed across sectors—there's no single dominant theme like we saw in previous expansion of the market is always good for the industry—there is no second thought about it. There are a lot of strategies emerging because it is quite a democratic system where anyone who aspires to manage external or third-party money can get in today. Otherwise, for decades, the only platform left was to get a job in a mutual fund, and launching your own mutual fund was next to it is quite a democratic expression of investing—different strategies, different ways of looking at the market—everything keeps competition at a reasonably high level, and everyone can learn from each other. I think it is of the growth has also come from EPFO capital and less from retail capital. But one thing I can tell you, which is very interesting, is that if you look at the PMS industry and landscape, and the advisory capital that has been built, 70% of the institutional capital is given to people who have a non-institutional background. They are not backed by large mutual fund-type sets the context that people are giving money to individuals to manage—they are not just looking for institutions. So, individuals can make a remarkable difference.I see this trend coming up significantly, where institutional capital will look for PMS managers or alternative managers—something that has happened in other parts of the world as well.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Time of India
2 days ago
- Business
- Time of India
PMS strategies set to outperform mutual funds in narrower market: Sushant Bhansali
In an exclusive conversation with ETMarkets, Sushant Bhansali , CEO of Ambit Asset Management on the sidelines of the APMI conference in Mumbai, said that Portfolio Management Services (PMS) are poised to outperform mutual funds in the next couple of years as market breadth narrows and only a select set of companies deliver superior earnings growth. Concentrated PMS portfolios , he noted, will be better placed to capitalise on these opportunities compared to large mutual funds, which often hold 100-plus stocks due to their size. Bhansali, who is also the Chairman of the Association of Portfolio Managers in India (APMI) board highlighted that concentrated PMS portfolios, unlike large mutual funds holding 100-plus stocks, are better positioned to capture alpha. Edited Excerpt - Kshitij Anand: Let me start off with one big question that's on everyone's mind: how will India perform in terms of alpha generation? How do you see the next few years playing out? Will we be able to mimic the performance of the past? Finance Value and Valuation Masterclass - Batch 4 By CA Himanshu Jain View Program Artificial Intelligence AI For Business Professionals Batch 2 By Ansh Mehra View Program Finance Value and Valuation Masterclass - Batch 3 By CA Himanshu Jain View Program Artificial Intelligence AI For Business Professionals By Vaibhav Sisinity View Program Finance Value and Valuation Masterclass - Batch 2 By CA Himanshu Jain View Program Finance Value and Valuation Masterclass Batch-1 By CA Himanshu Jain View Program by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like If the Cat Bites You, Here's What It Really Means. Weird Cat Behavior Explained Undo Sushant Bhansali: I would say that in the last few years, alpha generation was actually very difficult because anything and everything was working. To outperform, you probably needed to take more risk—both in terms of allocations and position sizing—as well as identifying whether you were in the top 20–30% of companies in terms of earnings growth. In the next two or three years, given the current state of the economy, alpha generation will become a lot easier if you play it right. That's because only select companies will deliver higher earnings growth, while a vast majority will not. Live Events So, by both avoiding companies that won't deliver and allocating more capital to those that will, you can create immense value—similar to how things played out between 2018 and 2020. In the two to three years before COVID, within the Nifty itself, only about five to seven stocks delivered superb returns—some growing more than 30% CAGR—while the index as a whole delivered single-digit returns. I think we are in a similar cycle now. Kshitij Anand: So, portfolio rebalancing will become more important in the current circumstances? Sushant Bhansali: I would say the churn will actually be lower compared to the past. Earlier, we had to continuously move from one stock to another to capture the next high-growth opportunity. Now, with fewer such opportunities available, investors will likely stick to the names that are delivering and continue to hold them. Kshitij Anand: And it's not market-cap agnostic, you feel? Sushant Bhansali: It will happen across segments. As I mentioned, it happened within the Nifty, and below that too—whether you look at midcaps or smallcaps—the overall universe will likely see 20–30% of companies performing very differently from the remaining 60–70%. Opportunities will be present across market-cap segments. What's needed is more research and conviction to differentiate yourself. Alpha generation will especially come on the PMS side, I would say, because PMS strategies typically run concentrated portfolios. In contrast, many diversified portfolios—especially large mutual funds—now hold 100 or more stocks due to their size. From that perspective, PMS will likely differentiate meaningfully well over the next two years compared to the last three to four years when everything worked. It's not that PMS didn't perform, but even mutual funds performed well during that period. Kshitij Anand: The Bharat theme became very popular, especially since 2014, and remains so. Defence has delivered multi-bagger kind of returns. Is there any theme that's currently on top of your mind, in focus now, or could be in focus over the next few years? We were thinking that post-Budget, consumption could play a big role because the government was focused on boosting it, and that indeed seemed to come through. But now we are seeing some plateauing in performance there. Is there any theme you have in mind? Sushant Bhansali: Ultimately, things that haven't worked in the past one or two quarters—or even the past one or two years—often start working in the next one or two years or quarters. You have to be contrarian to identify sector rotation, as we call it. I think that will take place, and consumption stocks, in particular, haven't done that well in the last one to one-and-a-half years. So, over the next one to one-and-a-half years, especially with tax breaks, lower interest rates, higher liquidity, and what I would call a bonanza for government employees expected in the coming quarters, all of these together should boost consumption. Rural is also coming back—thanks to what looks like a good monsoon this year—after struggling for the last three to four years. I think post-COVID, rural has been really struggling, so that theme should play out. We are expecting a bumper performance… In fact, all the companies we've spoken to on the consumption side—whether listed or unlisted—seem very excited. They have built up a lot of inventory, something they hadn't done in the last one or two seasons. Everyone is expecting a bumper H2, but if it doesn't happen, there is a big risk of a significant market correction. Kshitij Anand: A quick final question on the earnings front. So far, it's been a mixed season. What are your expectations for the next few quarters? Sushant Bhansali: Earnings have been more or less in line for Q4 and even Q1 so far, but that doesn't show you the true picture. They've been in line, but expectations were already quite muted. So, everyone seems content with them. If you look at most research reports, they tend to highlight something else—like volume growth coming back, inventory levels coming down, or working capital improving—and then mention towards the end that PAT is down or up only 4%. That tells you about the market environment, where corporates are really struggling on the earnings front. This season, there's still about a week left for all companies to report. But our guess is that by the end of the season, no more than 20% of companies will be able to deliver 15% earnings growth. If you look at recent history over the past five years, as many as 60–70% of companies were delivering that growth, and for a few quarters, even more than that. But this has been dwindling over the last four quarters. That said, given the base effect, we believe that probably after Q2 results—starting from Q3—we will begin to see high single-digit earnings growth across the board, with the number of companies delivering 15% growth rising from 15–20% now to 25–30%, and eventually to 40–50% over the next few quarters.
Economic Times
4 days ago
- Business
- Economic Times
Digital onboarding, centralised data key to next leg of PMS growth: Biharilal Deora
Biharilal Deora emphasizes that India's Portfolio Management Services (PMS) industry is poised for significant expansion, contingent on accelerating digital onboarding processes and enhancing access to standardized data. APMI's efforts in data collection and the launch of 'APMI Insights' are pivotal for transparency. Deora anticipates substantial growth, driven by India's economic trajectory and increasing investor sophistication. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The Portfolio Management Services ( PMS ) industry in India is on the cusp of a major growth phase, but unlocking its full potential will require faster adoption of digital onboarding and better access to standardised industry data , according to Biharilal Deora, Director at Abakkus Asset Manager LLP and Board Member of the Association of Portfolio Managers in India ( APMI ).Speaking to ETMarkets on the sidelines of the APMI conference in Mumbai, Deora noted that the association has made rapid progress in just three years, now representing around 320 members covering nearly 96% of the PMS industry 's assets under management ( AUM ) — a level that took other industry bodies decades to key priority for the association is simplifying account opening through digital onboarding, an area where PMS players still lag behind mutual funds and broking firms, which saw accelerated adoption post-COVID. 'We are working with SEBI to ease digital onboarding. This could solve many pain points for PMS account openings across the industry,' Deora major focus is data transparency. While mutual funds and other industries routinely publish key metrics like SIP numbers and AUM trends, the PMS industry lacked centralised, verified data until recently. To address this, APMI began collecting data on behalf of SEBI two years ago, covering performance, assets, and other key indicators. This effort culminated in the launch of 'APMI Insights', unveiled by the NSE MD, which offers a single-window view of the platform provides comprehensive information on AUM movements, returns over multiple timeframes, portfolio turnover ratios, and cash positions — eliminating the need for investors to check individual PMS websites. 'Now, clients can access audited, standardised net TWRR-based performance data across managers at one place,' Deora said, adding that PMS is the only industry with such standardised performance PMS industry currently manages about ₹5.5 lakh crore in total discretionary and non-discretionary assets, with discretionary AUM at roughly ₹2 lakh crore spread across just two lakh clients, implying an average ticket size of around ₹1 crore. While AUM has been growing at 23–25% annually over the past five years, client growth has been slower at 4–5% — a gap Deora believes will narrow as more wealthy individuals seek customised, alpha-driven the global trend where separately managed accounts (SMAs) often outpace mutual funds in size, Deora sees a similar shift in India. 'We are waiting for our 'COVID moment' — a tipping point when adoption accelerates exponentially, just like it did for mutual funds. The structure of PMS, with boutique managers competing purely on skill, offers unique value for clients,' he ahead, Deora expects the PMS industry to double every 5–7 years in line with India's projected GDP growth and rising per capita income, driven by liquidity events, business listings, and the ongoing financialisation of savings. 'Mutual funds are good, but PMS is also important. As investor literacy grows, the conversation will shift from explaining what equity is to explaining why our strategies are different. That's when the real growth will come,' he added.: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Time of India
4 days ago
- Business
- Time of India
Digital onboarding, centralised data key to next leg of PMS growth: Biharilal Deora
The Portfolio Management Services ( PMS ) industry in India is on the cusp of a major growth phase, but unlocking its full potential will require faster adoption of digital onboarding and better access to standardised industry data , according to Biharilal Deora, Director at Abakkus Asset Manager LLP and Board Member of the Association of Portfolio Managers in India ( APMI ). Speaking to ETMarkets on the sidelines of the APMI conference in Mumbai, Deora noted that the association has made rapid progress in just three years, now representing around 320 members covering nearly 96% of the PMS industry 's assets under management ( AUM ) — a level that took other industry bodies decades to reach. One key priority for the association is simplifying account opening through digital onboarding, an area where PMS players still lag behind mutual funds and broking firms, which saw accelerated adoption post-COVID. 'We are working with SEBI to ease digital onboarding. This could solve many pain points for PMS account openings across the industry,' Deora said. Another major focus is data transparency. While mutual funds and other industries routinely publish key metrics like SIP numbers and AUM trends, the PMS industry lacked centralised, verified data until recently. To address this, APMI began collecting data on behalf of SEBI two years ago, covering performance, assets, and other key indicators. This effort culminated in the launch of 'APMI Insights', unveiled by the NSE MD, which offers a single-window view of the industry. The platform provides comprehensive information on AUM movements, returns over multiple timeframes, portfolio turnover ratios, and cash positions — eliminating the need for investors to check individual PMS websites. 'Now, clients can access audited, standardised net TWRR-based performance data across managers at one place,' Deora said, adding that PMS is the only industry with such standardised performance reporting. The PMS industry currently manages about ₹5.5 lakh crore in total discretionary and non-discretionary assets, with discretionary AUM at roughly ₹2 lakh crore spread across just two lakh clients, implying an average ticket size of around ₹1 crore. While AUM has been growing at 23–25% annually over the past five years, client growth has been slower at 4–5% — a gap Deora believes will narrow as more wealthy individuals seek customised, alpha-driven strategies. Highlighting the global trend where separately managed accounts (SMAs) often outpace mutual funds in size, Deora sees a similar shift in India. 'We are waiting for our 'COVID moment' — a tipping point when adoption accelerates exponentially, just like it did for mutual funds. The structure of PMS, with boutique managers competing purely on skill, offers unique value for clients,' he said. Looking ahead, Deora expects the PMS industry to double every 5–7 years in line with India's projected GDP growth and rising per capita income, driven by liquidity events, business listings, and the ongoing financialisation of savings. 'Mutual funds are good, but PMS is also important. As investor literacy grows, the conversation will shift from explaining what equity is to explaining why our strategies are different. That's when the real growth will come,' he added. ( Disclaimer : Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
