Aequitas India Opportunities Product

What Is the Aequitas India Opportunities Product PMS?

The Aequitas India Opportunities Product is a discretionary Portfolio Management Services (PMS) strategy focused on listed Indian equities. The strategy was launched in February 2013 and follows a long-term, research-driven approach combining Growth, Value and Contrarian investing.

The portfolio seeks businesses that may be temporarily out of favour but have the potential for earnings growth, business improvement and valuation re-rating. Aequitas describes its approach as a multibagger investment strategy, with emphasis on a margin of safety, in-house research and long-term ownership.

The strategy uses the Nifty 50 TRI as its benchmark and is designed around long-term wealth creation rather than short-term market movements. Aequitas states that its average holding period exceeds five years, with portfolio churn below 20%.

Aequitas India Opportunities Product: Fund Snapshot at a Glance

*AUM reported by APMI for the Aequitas India Opportunities Product; the APMI figure is as reported for the applicable reporting period. Aequitas states a ₹25 crore minimum investment on its PMS page.

Aequitas India Opportunities Product Investment Strategy

Aequitas India Opportunities follows a Growth + Value + Contrarian investment philosophy.

The strategy seeks companies where the market's current perception or valuation may not fully reflect the underlying business potential. The investment team looks for businesses that can potentially deliver stronger earnings over a 3–5 year period, while also offering reasonable valuations and identifiable catalysts for re-rating.

The approach is fundamentally driven rather than based on short-term market movements. Aequitas emphasises in-house research, margin of safety, management quality, corporate governance, cash-flow generation and long-term business fundamentals.

The strategy can invest across market-cap segments and is not restricted to a small-cap universe. The focus is on identifying businesses with the potential to create substantial value over time.

Contrarian Stock Selection and Valuation Discipline

Contrarian investing is a central element of the strategy.

Aequitas looks for out-of-favour companies and industries where the market may be discounting near-term concerns but the underlying business has the potential to improve. The objective is to identify situations where earnings growth, business improvement or a change in market perception can become catalysts for valuation re-rating.

Valuation discipline is used alongside business analysis. The strategy seeks a margin of safety by considering whether the price paid for a business provides an appropriate balance between downside risk and long-term opportunity.

The research process evaluates factors such as earnings potential, valuation, industry structure, competitive position and possible catalysts before a company is considered for the portfolio.

Business Quality, Governance and Cash-Flow Filters

Business quality is an important part of Aequitas' investment process.

The strategy focuses on companies with characteristics such as:

• Strong or improving competitive positioning
• Quality management
• Sound corporate governance
• Strong balance sheets
• Low or manageable debt
• Sustainable cash-flow generation
• Attractive industry positioning
• Long-term earnings potential
• Reasonable valuations

Aequitas states that its PMS relies on in-house, process-driven research rather than external research agencies.

The research process includes analysis of investee companies and industries, management interactions, market developments and macroeconomic factors. This supports a bottom-up approach to stock selection.

Portfolio Construction, Holdings and Market-Cap Allocation

The Aequitas India Opportunities Product follows a concentrated, long-term equity approach rather than attempting to replicate the Nifty 50.

Aequitas states that its portfolios are bespoke and built around individual client requirements rather than generic model portfolios. The investment approach also emphasises long holding periods and low churn.

The strategy can participate across market-cap segments, including smaller and mid-sized companies where the investment team identifies attractive long-term opportunities.

The APMI record for the Aequitas India Opportunities Product reports ₹2,318.72 crore of AUM and identifies Nifty 50 TRI as the benchmark.

Current individual holdings and sector weights can change over time. Investors seeking the latest portfolio composition should refer to the latest applicable PMS portfolio disclosure or client factsheet.

Aequitas PMS Performance vs Nifty 50 TRI

The Aequitas India Opportunities Product uses the Nifty 50 TRI as its benchmark.

Aequitas publishes performance information for its PMS strategies, while APMI provides product-level reporting and benchmark information. Performance should be assessed over an appropriate investment horizon because the strategy follows a contrarian, concentrated and long-term investment approach.

The existing performance module on this page should be used for the applicable return figures and periods. Those figures should not be duplicated in the editable body.

Past performance does not indicate future results, and individual client returns may differ based on factors including investment timing, portfolio restrictions, cash flows and client-specific circumstances.

Minimum Investment, Fees, High-Water Mark and Exit Load

Aequitas currently states a ₹25 crore minimum investment for its PMS on its official PMS page. It also states that there is no lock-in period, while recommending a long-term holding period of 3–5 years for the investment strategy.

The fee structure should be understood from the applicable PMS agreement and current product documentation. Aequitas' stated fee framework includes:

• Management fee: 2%
• Performance fee: 10%
• Performance fee mechanism: High-water mark
• Performance fee frequency: As specified in the applicable agreement

A high-water mark is intended to ensure that performance fees are not repeatedly charged on the same gains. The performance-fee calculation is linked to profits above the applicable previous high-water mark, subject to the terms of the PMS agreement.

Aequitas' FAQ states that there is no lock-in period for its PMS. However, investors should review the applicable client agreement for the current withdrawal, exit and settlement terms before investing.

Key Risks of Aequitas India Opportunities Product

The Aequitas India Opportunities Product invests in equities and is therefore subject to market-related risks.

Equity-Market Risk

Movements in Indian equity markets, economic conditions, interest rates, liquidity and investor sentiment can affect portfolio performance.

Concentration Risk

A concentrated portfolio can have greater exposure to individual companies than a broad-market index. Weak performance from one or more significant holdings can therefore have a material effect on overall returns.

Small- and Mid-Cap Liquidity Risk

The strategy may invest in companies outside the largest market-cap segment. Such securities can experience lower trading liquidity and wider price movements, particularly during stressed market conditions.

Valuation Risk

A company identified as undervalued may remain undervalued for an extended period. The expected re-rating catalyst may also fail to materialise.

Earnings Risk

Changes in earnings expectations, industry conditions, competition or business execution can affect the investment thesis.

Balance-Sheet Risk

Financial leverage, weakening cash flows or deterioration in business fundamentals can negatively affect portfolio companies.

Management and Governance Risk

Changes in management quality, governance standards or capital-allocation decisions can affect the long-term prospects of an investee company.

Benchmark Underperformance Risk

The portfolio may underperform the Nifty 50 TRI over certain periods because its holdings and sector allocations can differ significantly from the benchmark.

Fund-Manager and Key-Person Risk

Investment outcomes depend partly on the effectiveness and continuity of the investment-management team and its investment process.

Who May Consider the Aequitas India Opportunities Product?

The Aequitas India Opportunities Product may be relevant for investors looking for a professionally managed Indian equity portfolio with a long-term investment horizon.

The strategy focuses on contrarian opportunities, fundamental research, valuation discipline and businesses with potential for long-term earnings growth.

Investors considering the strategy should be comfortable with equity-market volatility, concentrated positions, potential exposure to smaller and mid-sized companies and periods of underperformance relative to the benchmark.

The applicable minimum investment, fees, eligibility and contractual terms should be reviewed before investing.

Request Aequitas India Opportunities Product Details

Investors seeking the latest information can request the current PMS factsheet, portfolio details, fee structure and applicable client documentation before making an investment decision.