n this case assuming the PMS bought the entire NIFTY, it will show its performance as 50% since inception, even though 10 out of 11 clients will be at 0% returns. Now let’s say market falls to 8000. In this case, PMS will show its performance as 33% even though 10 out of 11 clients will be sitting at a loss of 11%. This is the single biggest anomaly of PMS firms and the same applies to investment advisory firms.
—- Isn’t this the same for MF? If a MF has given XIRR of 20%, if I buy at the peak and market falls, obviously my current returns would be -ve, isn’t it?
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