SME-Focused PMS Strategies Gain 7.5% as Nifty Tumbles 6% in September

Small and medium enterprise-focused investment strategies demonstrated significant resilience in September as major market benchmarks declined sharply. According to reports, the Nifty and Sensex indices fell over 6% during the month, creating a challenging environment for most equity strategies. However, PMS schemes targeting SMEs and small-cap stocks moved counter to broader market trends, with several strategies delivering positive returns ranging up to 7.5%.

HEM Securities' India Rising SME Stars scheme led the outperformance with a 7.23% gain, according to PMS Bazaar data. This strong performance stands in stark contrast to mid-cap and thematic strategy indices, which suffered losses during the period, with some strategies declining by up to 10.16%. The divergence underscores the varying risk-reward dynamics across market segments during periods of broader index weakness.

This performance dynamic carries significance for portfolio managers and investors evaluating strategy allocation. When large-cap indices experience correction, the SME and small-cap segments often follow independent trajectories based on sector rotation, liquidity flows, and company-specific fundamentals. PMS strategies concentrated in underexplored segments can capture value opportunities invisible to broader market indices during downturns. For investors, this data suggests that strategic allocation toward SME-focused vehicles may provide portfolio diversification benefits, particularly during periods when traditional indices face headwinds. The sharp divergence between segment performance in September illustrates why investors increasingly consider specialty PMS schemes as complementary holdings within broader wealth management frameworks.

Source: Markets-Economic Times