SEBI

Sectors that PMS Expect Big Returns From in 2024

Portfolio managers expect steady growth in investments made in the Indian economy. Portfolio managers prefer a bottom-up approach to determine which stocks will generate higher returns. However, they also evaluate the prospects of changing macro and micro-investments.

About PMS in Short

PMS, which stands for Portfolio Management Services, is a financial service used to manage investors’ portfolios. The registration of a Portfolio Manager with SEBI is required for the efficient management of equity portfolios in investors’ demat accounts. Further, PMS in India are highly on-demand.

List of Sectors Providing Big Returns in 2024

There are some top sectors the PMS managers believe will impact and provide promising returns for their investment portfolio. The following is the list that comprises the top sectors providing big returns in 2024:

1. Banking & Financial Service Sector

The PMS expects the banking and financial sector to provide a return of around 26.6%. The top three PMS strategies holding significant exposure to this sector are Trivantage Capital Small & Mid Cap Financial Portfolio, ASK-FOP, and Trivantage Capital—Resurgent Financial Equity.

2. Capital Goods

The weightage of the PMS industry in the capital goods market is around 11.5%. The NAFA Clean Tech Portfolio, Credent-Growth Portfolio, and Samvitti-PMS Active Alpha Multicap are the three different PMS strategies holding significant exposure in the capital goods market.

Also, Polycab, APL Apollo Tube, and Bharat Electronics are some of the preferred stocks expected to provide valuable returns in 2024.

3. Healthcare Sector

In India, the weightage of the PMS industry (including the insurance market) in the healthcare sector is around 9.8%, in consonance with the recent developments in the biotech, telehealth, and pharma industries.

The top three PMS strategies holding significant exposure in the healthcare sector are Healthcare PMS, Valcreate Lifescience, and Kotak-Pharma & Healthcare. Also, Sun Pharmaceutical Industries, Divi’s Laboratories, and Dr Reddy Laboratories are some of the companies considered to provide big returns in 2024.

4. IT Sector

The IT (information technology) sector is considered to be a significant player, with a weightage of around 6.9% in the PMS industry. Further, returns in these sectors are expected to grow with the advancements in AI, machine learning, cloud computing, and cyber security.

Kotak-Fintech Fund, NJ-Bluechip, and Asit C Mehta-Ace 15 are some of the top PMS strategies that hold significant exposure in the IT sector. Also, the stocks or portfolios of Infosys, TCS, HCL Tech, Reliance Industries, Wipro, and LTMindtree are expected to provide a huge return in 2024.

5. Automobile Sector

The weightage of the PMS industry is expected to grow at 6.8% in the automobile sector. The top three PMS strategies holding significant impact over the automobile and auto component sector are Invesco-Rise, Alchemy, and Anand Rathi Advisors-MNC PMS.

6. Oil, Gas, and Consumable Fuels Sector

A significant growth of PMS is observed in the Indian industry of oil, gas, and consumable fuels. The Ayan-PriceBridge Upswing, Motilal Oswal-Multifactor Equity PMS, and Asit C Mehta-Ace Midcap are some of the top PMS strategies that are expected to provide a huge return to the sector.

7. Service Sector

The total weightage of the PMS in the service sector is around 3.5%. Any investments in stocks like Interglobe Aviation, CMS Infor Systems, and eClerx Services may lead to huge returns in 2024.

8. Consumer Durables Sector

The weightage of the PMS industry in the industry of consumer durables is expected to grow at 5.4%. Tamohara-Q Strategy, ATLAS-Multicap PMS Fund, and NJ-Bluechip are some of the crucial PMS funds expected to provide a valuable return in 2024.

9. Consumer Service Sector

The weightage of the PMS industry in the consumer service sector is around 4.5%. The top three PMS strategies providing a valuable return in 2024 are Valcreate-IME Digital Disruption, Sundaram Alternate-SELF, and Motilal Oswal Founders.

10. Fast Moving Consumer Goods Sector (FMCG)

The total investment value in the Fast-Moving Consumer Goods sector (FMCG) is around Rs.2 crores, out of which the weightage of the PMS industry is around 4.5%.  Tamohara-Q Strategy, ATLAS-Multicap PMS Fund, and NJ-Bluechip are some of the top three PMS strategies expected to contribute to a huge return in 2024.

11. Chemical Sector

The weightage of the PMS industry in the chemical sector is around 3.9%. The Green Portfolio, Marcellus-Little Champs, and ATLAS-Midcap PMS funds are some of the top strategies expected to provide a valuable return in 2024.

Conclusion

PMS in 2024 is expected to mainly focus on the high-potential sectors with maximum returns. Knowing the returns on investment according to the growth of the market trends is beneficial for making investments in innovation, tech, healthcare, and other industries. Further, investments in these sectors are expected to provide valuable growth and return in the upcoming years.  

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