Investment Process

  • Our Scheme endeavours to generate alpha by creating Benchmark Agnostic Concentrated portfolios of Quality stocks, based on fundamental research and Bottom-Up stock picking.

Basis of Selection of Securities

Our stock selection is based on a rigorous Bottom-up Investing Process driven by Fundamental Research and overlaid with a Top-Down macro view. We screen stocks against a Quantitative and Qualitative internal framework.

  • Quantitative Screening: We use metrics like High Growth, High ROCE, High Cash Flow Conversion, and Low Leverage.

  • Qualitative Screening: We assess companies based on their Corporate Governance practices, Promoter Track Record, and Promoter Share Pledges.

  • We have analysts whose full-time job is to track notifications from the BSE India website. We don’t rely solely on broker reports. We look

  • We screen quarterly results to identify companies gaining market share against their peers. We closely observe behavioral changes and consumption patterns among Indians, believing these shifts lead to wealth creation in some sectors and wealth destruction in others (e.g., Plywood to MDF, Hatchback to SUVs, Screens to OTT, Value-added products in the dairy segment). Our team also tracks over 100 international companies to identify emerging trends that can be replicated sooner or later in India.

Finally, we use a Valuation Process that includes a blend of science and art to shortlist stocks that offer not only a high return potential but also a reasonable margin of safety.

Allocation Across Selection of Securities

  • Of the total scheme corpus, not more than 10% will be invested in a single stock and not more than 35% will be invested in a single sector.

The Basis for Choice of Benchmark

  • Scheme performance will be evaluated against a pre-identified Benchmark Index. An appropriate Benchmark will be selected that is consistent with the Investment Style and Scheme Category in terms of Market Capitalization i.e., either a Large Cap, Mid Cap, Small Cap, or Multi Cap specific Benchmark Index.

Ideal Investment Tenure

  • Ideal investment horizon is at least 5 to 7 years.

Risks Associated with the Investment Approach

  • We follow a concentrated portfolio approach to generate comparatively higher returns but which can also lead to higher risk and volatility in returns. We follow a Buy and Hold approach that may underperform the Benchmark in the short term or during times of higher volatility. Some Market Capitalization based categories may underperform the broader market in the short to medium term.