Introduction:  Value Strategy is meant for investors with a Long Term investment horizon in  the Indian Equity Markets. Discovering an original investment idea involves deep and meticulous analysis to discover the hidden true values. The portfolio’s investments philosophy revolves around finding value. As such, the investment philosophy is not dependent on the market trends but banks on the power of the intellect. A business is prudently picked for investment after a thorough study of its underlying hidden long-term potential. To purchase a piece of great business at a fraction of its true value is the discipline. The Fund manager, Mr. Raamdeo Agarwal conservatively picks 12 to 15 value stocks for a portfolio with a long-term investment philosophy, keeping the portfolio churn very low and high margin of safety. The aim of the theme is to maximizing post tax returns.

Portfolio Objective:  The Portfolio aims to deliver superior wealth creation by way  of  long  term compounding effect, with investments in good businesses run by great business managers.

Portfolio Characteristics:

Ø            Value based stock selection

Ø            Investment Approach : “Buy and Hold”

Ø            Investments with Long term perspective

Ø            Aim to Maximize post tax return due to Low Churn

Ø            Focused portfolio construction

Ø            Capital preservation consciousness*

* No capital guarantee

Investment Philosophy: 

Ø            Identify and purchase a piece of great business at a fraction of its true value.

Ø            Investments with a Long-term investment View. The fund manager strongly believes that

        “Money is made by Sitting”.

Ø            Investments are identified by a Bottom up Approach. The aim is to identify potential long-

        term   wealth   creators  by  focusing  on  individual  companies  and  their  management

        bandwidth.

Ø            Margin of Safety.

Investor Profile:  Investors who like to invest with a Long-term wealth creation view.

Portfolio Tenure:  Long Term (3 – 5 Years)

Risk Return Matrix:

Introduction:  Bull’s Eye PMS Strategy under is designed to invest in stocks with short-medium term perspective, for a minimum 15-20% move. The investment philosophy is to find “Momentum in Value”. It follows an active process driven method of profit booking and is parked temporarily in the safety of liquid mutual funds/ exchanges traded liquid funds till further opportunities are identified. The stock selection lays greater emphasis on companies which good corporate governance and excellent management track record. It would participate in emerging sector and turn around stories so as to participate and capture sharp rallies.

Portfolio Objective:  The Scheme aims to deliver superior returns in Low to medium term by investing in fundamentally strong stocks with momentum approach, coupled with active profit booking.

Ø        Investment Approach : “Momentum in Value”.

Ø       Investments with Short-Medium term perspective.

Ø       Regular Profit Booking.

Ø       Ability to sit on cash.

Ø       Investment in Momentum Sectors.

Ø      Identifying the right Sector and right Company with a scalable business managed by competent managers. To look out for companies with transparency, execution capability and Management Bandwidth.

Ø       Investments in market Leaders, who have the Vision to make it big.

Ø       The investments timing is event based and does not take help of technicals. Buying when the stock is just ripe to begin its big move upwards or vise versa.

Ø       The investments are done with a predefined price targets and portfolio follows an active process of Profit Booking.

Ø       In absence of investment opportunities, funds are temporarily parked in the safety of liquid mutual funds or exchange traded Liquid fund.

Investor Profile:   Investors who like to invest in value stocks and capitalize on the periodic upside by an active process of profit booking.

Portfolio Tenure:   Medium Term 1 Year

Risk Return Matrix:

Introduction: The portfolio is designed to invest in themes /stocks in the small and mid cap segment which are going to be a part the “NEXT TRILLION DOLLAR GDP GROWTH”. The Portfolio would target to invest in Small and Mid Cap Opportunities which have the potential of delivering above-average growth over the next 2-3 years.

The investment philosophy is to invest in stocks which are available at reasonable valuations and promise more than average growth. The portfolio would aim to identify emerging themes. The Portfolio would attempt to identify emerging themes early and exit when these when they are fairly discounted.

We firmly believe that markets rewards consistent growth over a period of time and only after critical size has been achieved by the company. For any stock to get recognized by the Market and get a desired Valuation one has to wait for the right “Trigger Point”. Perception Re-rating happens due to:

Ø            Increased Sales volume

Ø            Consistent Growth

Ø            Better Margins

Ø            Growing stakeholders confidence

Portfolio Objective: The Product aims to deliver superior returns by investing in Small and Mid cap ideas that are part of the next Trillion Dollar GDP growth opportunity.

Portfolio Characteristics: 

Ø            Investments in Small and Mid-cap Stocks

Ø            Bottom Up Stock Picking Approach

Ø            Focused Theme Portfolio

Ø            Investment Horizon - Long term (2 to 3 Yrs)

Ø            Benchmark: - CNX Mid Cap

Ø            Buy and Hold Philosophy – low portfolio churn

Ø            Open Ended Portfolio with Exit Fee

Ø            Quarterly Disclosure Of Portfolio

Ø            High Growth Story - Sector and Companies which promise a higher than average growth

Ø            Reasonable Valuation - Invest in high growth companies at reasonable price / value

Ø            Emerging Themes - Focus on Identifying Emerging Stocks / Sectors

Ø            Buy and Hold Strategy - The Portfolio shall focus on above philosophies and hold them till it realizes it true market potential. Wealth is created by sitting

Investor Profile:Investors who would like to invest in opportunities with a long term view in high growth, under valued stocks in emerging themes. 

Investment Tenure: Long Term (3 Years)

Risk Return Matrix:

Introduction: Contra Strategy - takes a different view

Picking ‘overlooked’ or ‘undiscovered’ stocks-albeit with sound fundamentals. These companies exhibit strong balance sheet and sustainable business models, but may be underperforming the markets for a brief period due to various reasons, which are temporary in nature.

Invest in companies, which are out-of-favour with the overall market but at the same time have unrecognized value. Identify these out-of-favour stocks and go against the tide, look for that first mover advantage in these scrip’s, in case of a turnaround.

Investors tend to follow trends and short-term events, and flock to the performing themes. Conversely, they tend to overreact to negative news. Higher the prices go up; more the people want to buy, resulting in herd mentality. Herd mentality often leads to stocks trading at a much higher premium/discount than their intrinsic value, thus creating ‘Contra’ opportunities.

Buy ignored companies and then wait for market to discover them, which then results in their share prices going up, thus benefiting by going against the tide.
Sell companies when Re-rating target is achieved

Portfolio Objective: The strategy aims to invest in fundamentally sound companies that can benefit from changes in a company’s valuation which reflects a significant change in the markets view of the company over an horizon of three years.

The Strategy focuses on investing in stocks that can benefit from growth in earnings, re-rating of business or higher valuation of assets.

The objective is to increase return rather than reduce risk for Investors.

Portfolio Philosophy: Bottom - up stock selection approach

Ø            Investment in fundamentally sound Contra stocks

Ø            Concentrated strategy of 8 - 10 stocks

Buy and Hold philosophy - Low portfolio churn

Investment Horizon
Ø            Hold stock till Re-rating potential is realized
Ø            Medium to Long Term - 2 to 3 years

Allocation:

Ø            Cash: 0 - 100%;

Ø            Stocks: 0 - 100%;

Ø            Derivatives: NIL

Risk : Medium to High

Exit load : Applicable in the 1st year

Benchmark : BSE 200

Portfolio Characteristics: 

Companies whose earnings are likely to do better than market expectations
Companies benefiting from fundamental changes
New management team or new product launch
Cost-cutting initiatives or improved pricing
Takeovers / Mergers or Acquisitions

Companies benefiting from changes in business environment
Consolidation or reduction in industry capacity leading to improved pricing
Shift in consumption patterns or demographic trends

Out of favour companies
Fundamentally sound companies that have underperformed due to a various reasons, which
are temporary in nature.

Companies with lower valuation as compared to sector or peers or market

Investor Profile: For investors who seek for high returns with high risk

Investment Tenure: Medium to Long Term - 2 to 3 years

Risk Return Matrix: