The jury is out…. Portfolio Management Services (PMS) have outperformed Equity Mutual Funds (MF) by a huge margin!

Avinash Singh
Content,& Analysis,
PMS AIF WORLD

Which is better – Portfolio Management Services or Mutual Funds?

We have curated a detailed score card to analyse the performance of both. A comparison has been done between MFs and PMSs (data has been considered as of 31.03.2025 for both, and returns displayed here are net of all expenses and gross of taxes) and the infographics of the same are given below.

If you had invested INR 50 lakhs each in the basket of Top 5 Equity Mutual Funds v/s in Top 5 Portfolio Management Services over the last 1,2,3,5, and 10 Years, where would you end up?

Check out the numbers below!

For high performance investing, which is better – Portfolio Management Services or Mutual Funds?

Here we present a simple analysis to address some real questions asked by investors today – Where should you invest – Portfolio Management Services (PMS) or Mutual Funds (MF)?

While both are well regulated and credible structures meant to out-perform equity market indices, objective performance analysis conveys that it is the PMSs that have generated significantly higher alpha and so, are righty considered to be wealth-creating vehicles.

We followed 3 simple steps

Step 1: We filtered Top 5 PMSs and Top 5 Mutual Funds (Open Ended, Regular Plans) in different time periods of 1 Year, 2 Years, 3 Years, 5 Years, and 10 Years from all the options available during these time periods; for all— Annualized Returns have been taken for period ending 31.03.2025.

Also, since 10Y is a good long term horizon, we have not bifurcated the comparison into different market cap categories for 10Y. Thus, for a 10-year period, the comparison has been done across all categories; but for 5Y, 3Y, 2Y, and 1Y comparisons, we bifurcated into Flexi Cap comparison as well as Mid & Small Comparisons.

Step 2: To make it simpler, we compared Flexi Cap PMSs with Flexi Cap MFs and we compared Mid & Small Cap PMSs with Mid & Small Cap MFs.

Step 3: We assumed investing INR 2.5 crores in equal weights (i.e. INR 50 lakhs each) in Top 5 PMSs & investing INR 2.5 crores in equal weights (i.e. INR 50 lakhs each) in Top 5 MFs during these time periods and arrived at the following results.

10Y Returns Comparison – Across All Categories

TOP 5 PMSs- 10Y Returns (Across all categories)
Scheme Name   AUM (Cr)  Annualized Returns
Aequitas Investment India Opportunities Product 2885.61 27.55%
Motilal Oswal Value Migration 3232.04 25.00%
Master Trust India Growth Strategy 339.58 20.42%
Motilal Oswal Next Trillion Dollar Opportunities (NTDOP) 4953.83 19.44%
Girik Capital Multicap Growth Equity Strategy 1503.58 18.16%
TOP 5 MFs- 10Y Returns (Across all categories)
Scheme Name   AUM (Cr)  Annualized Returns
Quant Small Cap Fund – Regular Plan – Growth 24892.62 18.57%
SBI Small Cap Fund – Regular Plan – Growth 308529.00 18.45%
Quant Flexi Cap Fund – Regular Plan – Growth 6712.15 18.05%
Axis Small Cap Fund – Regular Plan – Growth 22735.71 17.40%
Parag Parikh Flexi Cap Fund – Regular Plan – Growth 93440.89 17.07%

 

Conclusion: : If one had invested Rs 2.5 Crs in these top 5 PMSs on 1st April 2015, rather than in the top 5 MFs, over a period of 10 years, one would have generated Rs 6.17 Crs more.

5Y Returns Comparison – Flexi Cap

TOP 5 PMSs- 5Y Returns (Flexi Cap Fund)
Scheme Name  AUM (Cr) Annualized Returns
GLC Growth Fund 899.57 58.05%
Negen Capital Special Situations PMS 931.99 50.07%
Invasset Growth Fund 433.83 43.64%
Buoyant Opportunities Scheme 4330.19 40.19%
Renaissance India Next Portfolio 442.45 39.28%
TOP 5 MFs- 5Y Returns (Regular Plan, Flexi Cap Fund)
Scheme Name  AUM (Cr) Annualized Returns
Quant Flexi Cap Fund – Regular Plan Growth Option 6712.15 36.84%
UTI Large & Mid Cap Fund – Regular Plan – Growth Option 4789.32 31.22%
Parag Parikh Flexi Cap Fund – Regular Plan – Growth 93440.89 30.31%
Motilal Oswal Large and Midcap Fund – Regular Plan Growth 4100.83 29.92%
Mahindra Manulife Multi Cap Fund – Regular Plan – Growth 4883.00 29.50%

 

Conclusion: If one had invested Rs 2.5 Crs in these top 5 PMSs on 1st April 2020, rather than in the top 5 MFs, over a period of 5 years , one would have generated Rs 7.23 Crs more.

5Y Returns Comparison – Mid & Small Cap

TOP 5 PMSs- 5Y Returns (Mid & Small Cap Fund)
Scheme Name  AUM (Cr) Annualized Returns
Counter Cyclical Diversified Long Term Value 582.18 78.20%
Seers Enduring Portfolio 323.82 57.54%
Aequitas India Opportunities Product 2885.61 55.74%
Equitree Emerging Opportunities 612.01 51.76%
Aurum Small Cap Opportunities 601.42 41.92%
TOP 5 MFs- 5Y Returns (Regular Plan, Mid & Small Cap Fund)
Scheme Name  AUM (Cr) Annualized Returns
Bank Of India Small Cap Fund Regular Plan Growth 1574.18 36.46%
Tata Small Cap Fund-Regular Plan-Growth 9203.33 36.15%
Bandhan Small Cap Fund – Regular Plan Growth 9516.16 35.93%
Canara Robeco Small Cap Fund – Regular Plan – Growth Option 103276.82 35.87%
Edelweiss Small Cap Fund – Regular Plan – Growth 4064.12 35.82%

 

Conclusion: If one had invested Rs 2.5 Crs in these top 5 PMSs on 1st April 2020, rather than in the top 5 MFs, over a period of 5 years, one would have generated Rs 13.67 Crs more.

3Y Returns Comparison – Flexi Cap

TOP 5 PMSs- 3Y Returns (Flexi Cap Fund)
Scheme Name  AUM (Cr) Annualized Returns
Green Lantern Capital Growth Fund 899.57 47.49%
Samvitti Capital Active Alpha 363.06 33.80%
Stallion Asset Core Fund 4494.5 32.27%
Invasset Growth Fund 433.83 30.90%
HDFC Diversified Equity 557.56 25.92%
TOP 5 MFs- 3Y Returns (Regular Plan, Flexi Cap Fund)
Scheme Name  AUM (Cr) Annualized Returns
SBI Long Term Equity Fund – Regular Plan – Growth 27730.33 23.29%
Motilal Oswal Large and Midcap Fund – Regular Plan Growth 4100.83 22.86%
Kotak Multicap Fund – Regular Plan – Growth 15870.00 21.23%
Bandhan Core Equity Fund – Regular Plan – Growth 7966.79 21.20%
JM Flexicap Fund (Regular) – Growth Option 5263.18 20.96%

 

Conclusion: If one had invested Rs 2.5 Crs in these top 5 PMSs on 1st April 2022, rather than in the top 5 MFs, over a period of 3 years, one would have generated Rs 1.55 Crs more.

3Y Returns Comparison – Mid & Small Cap

TOP 5 PMSs- 3Y Returns (Mid & Small Cap Fund)
Scheme Name  AUM (Cr) Annualized Returns
Aequitas India Opportunities Product 2885.61 37.01%
Equitree Emerging Opportunities 612.01 36.79%
Counter Cyclical Diversified Long Term Value 582.18 30.78%
Seers Enduring Portfolio 323.82 28.45%
Carnelian Shift Strategy 3410.34 28.08%
TOP 5 MFs- 3Y Returns (Regular Plan, Mid & Small Cap Fund)
Scheme Name  AUM (Cr) Annualized Returns
Bandhan Small Cap Fund – Regular Plan Growth 9516.16 23.94%
ITI Small Cap Fund – Regular Plan – Growth Option 3219 23.30%
Invesco India Small Cap Fund – Regular Plan – Growth 5885 20.72%
Edelweiss Mid Cap Fund – Regular Plan – Growth Option 8633.85 21.94%
Tata Small Cap Fund-Regular Plan-Growth 9203.23 21.11%

 

Conclusion: If one had invested Rs 2.5 Crs in these top 5 PMSs on 1st April 2022, rather than in the top 5 MFs, over a period of 3 years, one would have generated Rs 1.23 Crs more.

2Y Returns Comparison – Flexi Cap

TOP 5 PMSs- 2Y Returns (Flexi Cap Fund)
Scheme Name  AUM (Cr) Annualized Returns
Green Lantern Capital Growth Fund 899.57 62.03%
Invasset Growth Fund 433.83 55.67%
Stallion Asset Core Fund 4494.5 52.73%
Samvitti Active Alpha 363.06 45.55%
Ambit Alpha Growth Portfolio 581.34 44.68%
TOP 5 MFs- 2Y Returns (Flexi Cap Fund)
Scheme Name  AUM (Cr) Annualized Returns
SBI Long Term Equity Fund – Regular Plan- Growth 27730.33 32.43%
Motilal Oswal Large and Midcap Fund – Regular Plan Growth 4100.83 31.30%
Bandhan Core Equity Fund – Regular Plan – Growth 7966.79 30.74%
Kotak Multicap Fund-Regular Plan-Growth 15870.00 30.07%
JM Flexicap Fund (Regular) – Growth Option 5263.18 29.82%

 

Conclusion: If one had invested Rs 2.5 Crs in these top 5 PMSs on 1st April 2023, rather than in the top 5 MFs, over a period of 2 years, one would have generated Rs 1.52 Crs more.

2Y Returns Comparison – Mid & Small Cap

TOP 5 PMSs- 2Y Returns (Mid & Small Cap Fund)
Scheme Name  AUM (Cr) Annualized Returns
Equitree Emerging Opportunities 612.01 61.88%
Aequitas India Opportunities Product 2885.61 46.48%
Carnelian Shift Strategy 3410.34 43.18%
Seers Enduring Portfolio 323.82 40.99%
Roha Emerging Champions Portfolio 310.71 37.16%
TOP 5 MFs- 2Y Returns (Regular Plan, Mid & Small Cap Fund)
Scheme Name  AUM (Cr) Annualized Returns
Bandhan Small Cap Fund – Regular Plan Growth 9516.16 41.75%
ITI Small Cap Fund – Regular Plan – Growth 3219.00 33.68%
Edelweiss Mid Cap Fund – Regular Plan – Growth 8633.85 32.80%
Mahindra Manulife Mid Cap Fund – Regular Plan – Growth 3398.00 32.37%
Invesco India Smallcap Fund – Regular Plan – Growth 5884.64 31.72%

 

Conclusion:If one had invested Rs 2.5 Crs in these top 5 PMSs on 1st April 2023, rather than in the top 5 MFs, over a period of 2 years, one would have generated Rs 0.82 Crs more.

1Y Returns Comparison – Flexi Cap

TOP 5 PMSs- 1Y Returns (Flexi Cap Fund)
Scheme Name  AUM (Cr) Annualized Returns
Stallion Asset Core Fund 4494.5 30.57%
GLC Growth Fund 899.57 24.62%
InCred Multicap Portfolio 280.8 21.73%
Anand Rathi Impress Portfolio 534.87 20.88%
HDFC Diversified Equity 351.8 20.21%
TOP 5 MFs- 1Y Returns (Regular Plan, Flexi Cap Fund)
Scheme Name  AUM (Cr) Annualized Returns
Motilal Oswal Large Cap Regular Plan – Growth 1919.37 25.11%
Motilal Oswal Flexi Cap Fund Regular Plan – Growth 12266.94 18.45%
DSP Equity Opportunities Fund-Regular Plan – Growth 13784.25 15.98%
SBI Multicap Fund- Regular Plan- Growth – Option 19192.41 15.48%
LIC MF Large & Mid Cap Fund-Regular Plan – Growth 3141.81 15.28%

 

Conclusion: If one had invested Rs 2.5 Crs in these top 5 PMSs on 1st April 2024, rather than in the top 5 MFs, over a period of 1 year, one would have generated Rs 0.14 Crs more.

1Y Returns Comparison – Mid & Small Cap

TOP 5 PMSs- 1Y Returns (Mid & Small Cap Fund)
Scheme Name  AUM (Cr) Annualized Returns
Equitree Emerging Opportunities 612.01 38.26%
Carnelian Shift Strategy 3410.34 18.20%
Abakkus Emerging Opportunities Approach 4859.25 17.94%
Aequitas India Opportunities Product 2885.61 17.41%
Electrum Laureate Portfolio 476.24 17.02%
TOP 5 MFs- 1Y Returns (Regular Plan, Mid & Small Cap Fund)
Scheme Name  AUM (Cr) Annualized Returns
Bandhan Small Cap Fund – Regular Plan Growth 9516.16 18.52%
Edelweiss Mid Cap Fund – Regular Plan – Growth Option 3219.00 17.58%
Invesco India Smallcap Fund – Regular Plan – Growth 5884.64 13.26%
Tata Small Cap Fund-Regular Plan-Growth 9203.23 11.84%
ITI Small Cap Fund – Regular Plan – Growth Option 3219.00 9.82%

 

Conclusion: If one had invested Rs 2.5 Crs in these top 5 PMSs on 1st April 2024, rather than in the top 5 MFs, over a period of 1 year, one would have generated Rs 0.18 Crs more.

From the above results, investing in PMSs has created more wealth for investors than investing in MFs.

This was simple. The difficult task starts from here on. And that is –

  • How to select the potential Best 5 Portfolios for different periods of 3 to 5 years of future investments?
  • How to have the conviction to hold the best ones for the longer term?

And this is best endeavoured by our Analytics & Content backed approach..

Our proprietary analysis & content helps tackle the above 2 tasks. We are very selective, and we analyse PMS products across the 5 Ps – People, Philosophy, Performance, Portfolio, and Price with an aim to ascertain the Quality, Risk, and Consistency (QRC) attributes before suggesting the same to investors.

Holding on to the good equity investments requires high conviction in the portfolio at all points of time, else, one tends to exit early owing to the traps of emotions or impatience. With our proprietary content via fund manager videos, newsletters, and articles, we keep our clients updated, and this ensures our clients always make informed decisions.

We offer responsible, long-term quality investing. Our Philosophy is simple, but not easy –

Quality + High Conviction = Compounding.

For any queries related to your investment needs, book an appointment with our experts.

This analytics is an endeavour to compare MFs and PMSs objectively.

Please Note:

  • Min AUM taken for PMSs (3Y, 5Y, and 10Y Category) is Rs 200 Crs
  • Min AUM taken for PMSs (2Y Category) is Rs 100 Crs
  • Min AUM taken for PMSs (1Y Category) is Rs 75 Crs
  • Min AUM taken for MFs (5Y, and 10Y Category) is Rs 4000 Crs
  • Min AUM taken for MFs (3Y Category) is Rs 3000 Crs
  • Min AUM taken for MFs (2Y, and 1Y Category) is Rs 2000 Crs

Source: Respective PMS Companies’ Audited Factsheets for PMS Data and AMFI, APMI & Moneycontrol P2P Data for MF Data. Returns more than 1 year is CAGR. These are Point-to-Point returns till 31st March 2025. So, for 10Y, the period taken is 01st April 2015 to 31th March 2025 and likewise for others as well.

Wealth Management Industry is not designed to be Fair. There are hundreds of products and strategies that waste time and money. A strict discipline is required, and one must practice caution while investing. It is easy to socialize and sell, which is what most sales-driven wealth management companies do. But it is equally difficult to maintain insight and integrity, which is what drives us.

PMS AIF WORLD provides analytics & content backed quality investment services. It is easy to socialize and sell, which is what most sales-driven wealth management companies do. But it is equally difficult to maintain insight and integrity, which is what drives us. Our focus is Performance, and we are driven by meaningful analytics.

We are a new age Wealth Management Company. With us, investors make informed investment decisions.

RISK DISCLAIMER: Investments are subject to market-related risks. This write up is meant for general information purposes and not to be construed as any recommendation or advice. The investor must make their own analysis and decision depending upon risk appetite. Only those investors who have an aptitude and attitude to risk should consider the space of Alternates (PMS & AIFs). Past Performance may or may not be sustained in the future and should not be used as a basis for comparison with other investments. Please read the disclosure documents carefully before investing. PMS & AIF products are market-linked and do not offer any guaranteed/assured returns. These are riskier investments, with a risk to principal amount as well. Thus, investors must make informed decisions. It is necessary to deep dive not only into the performance, but also into people, philosophy, portfolio, and price, before investing. We, at PMS AIF WORLD do such a detailed 5 P analysis.

Wealth Management Industry is not designed to be Fair. There are hundreds of products and strategies that waste time and money. A strict discipline is required, and one must practice caution while investing. It is easy to socialize and sell, which is what most sales-driven wealth management companies do. But it is equally difficult to maintain insight and integrity, which is what drives us.

PMS AIF WORLD provides analytics & content backed quality investment services. It is easy to socialize and sell, which is what most sales-driven wealth management companies do. But it is equally difficult to maintain insight and integrity, which is what drives us. Our focus is Performance, and we are driven by meaningful analytics.

We are a new age Wealth Management Company. With us, investors make informed investment decisions.

RISK DISCLAIMER: Investments are subject to market-related risks. This write up is meant for general information purposes and not to be construed as any recommendation or advice. The investor must make their own analysis and decision depending upon risk appetite. Only those investors who have an aptitude and attitude to risk should consider the space of Alternates (PMS & AIFs). Past Performance may or may not be sustained in the future and should not be used as a basis for comparison with other investments. Please read the disclosure documents carefully before investing. PMS & AIF products are market-linked and do not offer any guaranteed/assured returns. These are riskier investments, with a risk to principal amount as well. Thus, investors must make informed decisions. It is necessary to deep dive not only into the performance, but also into people, philosophy, portfolio, and price, before investing. We, at PMS AIF WORLD do such a detailed 5 P analysis.

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