Fund Snapshot
| Year of Inception | 2012 |
| Minimum Investment | 10 Crores |
| Number of Stocks | 15-20 stocks |
| Investment Horizon | 3-5 years |
| Performance Sharing | 10% profit sharing with high watermarking to be charged annually at the end of the financial year |
Investment Strategy
- Portfolio management services are available to high-net-worth individuals, Indian corporations, and non-resident Indians.
- The portfolio management product’s main goal is to produce capital gains over the medium and long term by investing in equity-linked instruments of publicly traded corporations.
- Aequitas Investment Consultancy employs a bottom-up strategy when selecting equities for inclusion in an investor’s portfolio, and portfolio management constructs portfolios based on the organisations’ high conviction opinions.
- The portfolio’s equities are from high-quality companies with strong corporate governance.
Investment Pattern
- The percentage invested in equity shares and IPOs ranges from 0% to 100%.
- A total of 10 stocks can be invested, with a maximum of 30.
- No single stock can account for more than 15% of the portfolio during the investment term.
- No single sector should account for more than 30% of the whole portfolio during the investing term.
Benefits
- The company strives to maintain a one-to-one relationship with the customers.
- The company has only one product i.e. portfolio management service, and only one yardstick to measure its performance.
- The company offers bespoke portfolios, not a model portfolio
- Companies do not work with distributors
- The company aim to construct a portfolio with 15-20 stocks across various sectors.
Portfolio Construction
- Invest in high-quality businesses, with an emphasis on small and mid-cap growth.
- The majority of market participants are concerned with a price; we are concerned with the company’s fundamentals.
- Aim to build a portfolio of 15-20 equities from diverse industries.
- Invest with a 3-5 year time horizon and a low churn rate in mind.
- For a long period, a value can maintain a value. We’re always on the lookout for triggers that might lead to a stock re-rating.
Company Attributes
- The majority of the businesses in our portfolio are market leaders with a long-term competitive advantage.
- Companies must have very low debt levels, and some of them are actually cash positive.
- A solid long-term performance record, strong dividend payment record, and corporate governance procedures are required.
- The portfolio price-to-earnings ratio is lower than the market price-to-earnings ratio (adjusted for cyclicality in earnings).
- In the 12 months leading up to our initial acquisition, the majority of the corporations had done buy-backs or creeping acquisitions.
- Companies with strong and continuous cash flow generation are included in the portfolio.
Reasons to choose
- One of India’s best-performing mutual funds
- A long-term plan focused on generating wealth.
- Excessive profits
- Multi-bagger Strategy
- Client Relationships on a One-to-One Basis
- Low transaction costs and a low churn rate
- Long-term holdings are taxed at a lower rate than short-term holdings.
- There are no distributors or intermediaries; the company has developed via referrals.
- Returns with the lowest risk
- The best performance over the last five years
