Pre-Budget jitters pummel 70% PMSes into the red in January

After demonstrating a strong growth throughout the journey, NIFTY displayed signs of fatigue in the second half of the January. The upcoming Union Budget 2021 had turned investors cautious and this can be identified as one of the biggest reasons for the same. There was a steep correction towards the month end and as a result the index ended the month with a loss of 2.48 per cent.

This underperformance of the equities market was clearly visible in Portfolio Management Schemes as well. Most of the PMS generated negative returns last month and ended up in red, while very few schemes ended up flat.

Basant Maheshwari’s multi-cap fund, which had been the top performer in November and December 2020, was amongst the biggest losers in January, dropping 8.09 per cent on a month-on-month basis.

It must be noted that Portfolio Management Schemes are there to cater the needs of wealthy investors and the fee charged by them are higher when compared to the regular Mutual Funds.