{"id":1492,"date":"2021-01-01T00:00:00","date_gmt":"2021-01-01T00:00:00","guid":{"rendered":""},"modified":"2025-11-07T10:53:53","modified_gmt":"2025-11-07T05:23:53","slug":"why-even-the-best-pms-failed-to-deliver-returns-in-last-15-years","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/why-even-the-best-pms-failed-to-deliver-returns-in-last-15-years\/","title":{"rendered":"Why Even the Best PMS Failed to Deliver Returns in Last 1.5 Years?"},"content":{"rendered":"
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Indian markets have been under huge pressure, due to a slowdown in the economy and weak corporate earnings growth. So it is quite natural that the portfolio of most investors has taken a hit and the same is the case with portfolios of best Portfolio Management Service (PMS<\/a>).<\/p>\n\n\n\n

Let\u2019s take a look at some of the other factors which affected the Indian stock markets over the last 1.5 years:<\/strong><\/h3>\n\n\n\n

Default of IL&FS <\/strong><\/p>\n\n\n\n

In September 2018, IL&FS Financial Services<\/a>, a subsidiary company of IL&FS, defaulted in payment of interest on bank loans, deposits and in the redemption of commercial paper. As a result, rating agency ICRA downgraded the ratings of its IL&FS\u2019s short and long-term borrowing. The defaults also put at risk thousands of small investors as well institutional investors like banks and mutual funds<\/a> who had significant exposure to IL&FS. It also sparked panic among equity investors even as several non-banking financial companies faced turmoil amid a default scare.<\/p>\n\n\n\n

Fears of a debt market crisis due to an IL&FS default prompted DSP Mutual fund to sell commercial papers of Dewan Housing Finance (DHFL). This resulted in a contagion effect in domestic stock markets with Indian benchmark indices correcting heavily.<\/p>\n\n\n\n

Higher tax<\/a> surcharge on foreign portfolio investors (FPIs) announced in the Budget<\/a><\/strong><\/p>\n\n\n\n

In the union budget<\/a> for 2019-20, the finance minister announced higher tax surcharge on foreign portfolio investors. This triggered off a massive sell-off by foreign portfolio investors in domestic markets which continued for the next few months. Foreign Portfolio Investors (FPI\u2019s) & Foreign Institutional Investors (FII\u2019s) have been one of the biggest drivers of Indian stock market<\/a> over the last 2 decades.<\/p>\n\n\n\n

Ongoing round of trade wars between USA and China<\/strong><\/p>\n\n\n\n

There seems to be no respite in the trade wars between USA and China. The imposition of fresh tariffs by USA on China and vice-versa every time have resulted in a sell-off in American stock markets, prompting a rush for safe-haven assets such as US bonds and gold. With American stock markets taking a hit, the cascading effects can be seen in world-wide markets including Indian markets too.<\/p>\n\n\n\n

The road ahead looks better for best portfolio management service<\/strong><\/h2>\n\n\n\n

Over the last 1.5 years the number of negatives which influence stock markets have far outweighed the positive factors in the market which resulted in a negative returns for portfolios of even the best Portfolio Management Service. Small-cap and mid-cap stocks which form a large portion of portfolios of investors of best Portfolio Management Service have taken the biggest hit in the last 1.5 years.<\/p>\n\n\n\n

However, the government has taken some concrete steps to boost the market, such as the rollback of the higher tax surcharge on foreign portfolio investors, reduction in corporate taxes and re-capitalization of public sector banks. With government doing everything possible in its power to uplift the economy and boost stock markets, the road ahead looks positive for investors.<\/p>\n\n\n\n

Read more:  How Long-term investing helps create life-changing wealth \u2013 TOI<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Indian markets have been under huge pressure, due to a slowdown in the economy and weak corporate earnings growth. So […]<\/p>\n","protected":false},"author":5,"featured_media":54806,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1492","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/1492","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/comments?post=1492"}],"version-history":[{"count":2,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/1492\/revisions"}],"predecessor-version":[{"id":61834,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/1492\/revisions\/61834"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/media\/54806"}],"wp:attachment":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/media?parent=1492"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/categories?post=1492"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/tags?post=1492"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}