A strategy that can mould itself from a large cap portfolio to mid cap portfolio or vice-versa
History suggests that Large & Mid Cap companies tend to perform differently through economic and market cycles
For e.g. mid or small cap stocks could move up sharply during a certain time period while large cap stocks remain range bound and vice versa. On the other hand, large cap stocks tend to be less volatile than Mid & Small cap stocks during the downturn. Past experience suggests that at varying times, MidCaps trade at varying discounts (and sometimes at a premium) to the Large Caps and this gives opportunities in terms of asset allocation between Mid Caps and Large Caps. In order to derive optimal returns from the stock markets, investments need to be diversified and have the flexibility to shift allocations across market caps.
Helps keep emotions & sentiments out of investment process
E.g. A client has invested Rs. 1 crore and when the target return of 15% is achieved, Rs. 15 Lakhs will automatically be redeemed & given back to client
The Fund Manager will continue to manage the balance Rs. 1 crore ( market value) & the above process will be repeated every time the strategy achieves the target return of 15%
The Strategy aims to generate superior returns over a medium to long term by investing in only 8-10 companies across market capitalization. The Fund Manager will take active asset allocation calls between cash & equity. The strategy will also take active equity allocation calls between investments in large caps & mid caps & it will follow a policy of profit booking with predefined price targets.
Ø Actively managed multi cap strategy
Ø Investment Horizon: Medium to Long term
Ø Investment Approach: Capitalize on Top Down & Bottom Up strategies of investing
Ø Cash Out Strategy: Automatic payout of appreciation amount when the Client's AUM
appreciates by 15%
Ø Top Down & Bottom Up Approaches
Ø Invest in Fund Manager’s top 8-10 stock ideas across Market Cap
Ø Investment horizon: Medium term (12-18 months)
Ø Actively Managed Strategy
Ø Focused Strategy of 8-10 stocks
Ø Risk Return Profile: Medium Risk - Medium to High Return
Ø Benchmark: BSE 200
Ø Monthly disclosure of portfolio
Ø Exit load on withdrawal of the portfolio (part or full) in the 1st year
Ø Exit load will not be charged on the automatic pay-out of the target returns of 15%
Ø Fundamental Stock Selection Approach
Ø Invest in good blend of Growth & Value stocks across market capitalization
Ø Active Equity Allocation between Mid caps & Large caps
Ø Allocation between Large Caps and Mid Caps will be a function of their relative valuations
Ø Market Timing
Ø Active Asset Allocation calls between Cash and Equity
Ø Regular Profit Booking
Ø Strategy will follow a policy of profit booking with predefined price targets
Ø Cash Out Strategy
Ø When the Client’s AUM appreciates by 15%, the appreciation amount will be
automatically paid-out
Ø Exit load will not be charged on this automatic pay-out
For investors who look for high return with medium to high risk
Medium term (12-18 months)