PMS players take a hard knock to their portfolios amid market volatility

The bloodbath in the markets has come as a body blow for PMS (portfolio management services) players, which were already reeling from the impact of recent regulatory changes. A sizeable number of PMS schemes lean towards mid- and small-caps in their portfolio and run concentrated portfolios of 15-20 stocks. A concentrated portfolio increases the potential of higher returns but can exacerbate the fall, making exit difficult for investors. “Unless strategies are well-diversified and comprise quality stocks, the schemes are likely to take a greater hit. If the index has fallen 2.....

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