India’s Top Portfolio Managers Suffer Worst Monthly Loss In July Since IL&FS Crisis
India’s top portfolio managers suffered the worst loss in nearly a year last month amid a prolonged slowdown in the economy and selloff by overseas investors.
The 50 largest portfolio management firms—that collectively manage Rs 1.08 lakh crore of investor money—lost 6.3 percent on an average in July, according to data compiled by BloombergQuint from the disclosures made to the market regulator. That’s the worst loss since September 2018 when the firms—accounting for more than 81 percent of the assets under all registered portfolio managers—lost nearly 11 percent after a liquidity crisis stemming from IL&FS defaults roiled the equity markets.
The benchmark S&P BSE Sensex and NSE Nifty 50 Index dropped 4.9 percent and 5.7 percent, respectively, in July. Even the broader market represented by Nifty 500 and Nifty Midcap 100 slumped 6.3 percent and 9.8 percent, respectively, during the month.
Assets managed by portfolio managers, too, declined to Rs 1.41 lakh crore as of June from a peak of Rs 2.21 lakh crore at the end of April, data available with the Securities and Exchange Board Of India showed. The regulator is yet to release the assets under management numbers for July.
The returns of top 50 portfolio managers continued to lag the Sensex and Nifty year-to-date and for the 12-month period. Nineteen firms, however, managed to beat the Sensex, but only four posted gains in July. Club Millionaire Financial Services Pvt. Ltd. was best performer, returning 3.36 percent gains.
Among the top 10 portfolio managers by assets, only IIFL Wealth Management Ltd. managed to post a marginal gain last month.
Here is how the top 50 portfolio managers performed in July.