High Conviction Equity Portfolio
Investment Objective
The Portfolio Manager aims to generate outsize returns over 3–5 years, through a diversified multicap portfolio out of top 20–25 most compelling investment ideas. The Portfolio may also have large allocation to cash and Money Market Instruments/funds as an investment tool.
Type of Securities
Portfolio will invest in listed equity and equity related instruments. The portfolio can have some exposure to debt instruments including Money Market Instruments, units of mutual fund including fixed deposits, or any other securities as may be specified by SEBI from time to time.
Benchmark and basis for choice of benchmark
S&P BSE 500; The Portfolio Manager intends to make investments in listed equity and equity related instruments across market capitalisation i.e. Large Cap, Mid Cap, Small & Microcap stocks. Hence, an equity benchmark will be an appropriate choice to compare the performance. The above mentioned benchmark is the most suitable amongst the benchmarks made available vide circular APMI/2022-23/02 dated March 23, 2023 & revised Annexure I received on 31st March 2023 issued by Association of Portfolio Managers in India.
Indicative investment horizon
Indicative investment horizon: Ideal investment horizon for any equity investment should be long term in nature for compounding to work for the Client. However, the indicative investment horizon for the High Conviction Equity Portfolio should be at least 3 years.
Investment Style
Multi-cap portfolio with judicious allocation to large, mid and small cap based on their return potential. Not More than 10% allocation in single stock at the time of investment.
Basis of Selection
Listed equity and equity related instruments will be selected basis the in house proprietary research carried out by the portfolio management team, in accordance with investment objective of the Portfolio. Debt instruments will be typically used for temporary parking of Funds pending deployment in market wherein liquidity and safety will be primary basis for selection.
Allocation
Equity & equity related instruments: 70%-100%
Debt instruments: 0%-30%
Portfolio Suitability
Investors seeking potential upside of mid cap stocks along with the stability of large cap stocks, for long term wealth creation.
Top Ten Holdings *
| Security | % Assets |
|---|---|
| HDFC Bank | 7.0% |
| Bharti Airtel Limited | 6.2% |
| ICICI Bank | 5.0% |
| Reliance Industries Ltd | 4.7% |
| Titan Company Limited | 3.7% |
| Alkem Laboratories Limited | 3.3% |
| NTPC Limited | 3.1% |
| Hindustan Aeronautics Limited | 3.1% |
| eClerx Services Limited | 3.0% |
| Larsen and Toubro Ltd | 2.9% |
Portfolio Performance
| Period | Portfolio | BSE 500 TRI | Nifty 500 TRI |
|---|---|---|---|
| 1 Month | 2.6% | 3.7% | 3.8% |
| 3 Months | 9.4% | 10.8% | 11.1% |
| 6 Months | 2.7% | 5.9% | 6.1% |
| 1 Year | 0.9% | 5.1% | 5.7% |
| 2 Years | 20.8% | 20.5% | 21.0% |
| 3 Years | 22.6% | 21.7% | 22.0% |
| 5 Years | 21.5% | 24.0% | 24.0% |
| Since inception date 14/03/2014 | 17.3% | 16.0% | 16.0% |
Sector Allocation
Investment Style
For the full strategy presentation, please contact us.