Alchemy Select Stock

What Is the Alchemy Select Stock PMS?

Alchemy Select Stock PMS is a concentrated, discretionary Portfolio Management Service from Alchemy Capital Management Pvt Ltd, designed to invest in high-growth businesses across market capitalizations. The strategy combines top-down and bottom-up fundamental research with a high-conviction portfolio approach, generally holding around 8 to 14 stocks across sectors. Alchemy describes the strategy as market-cap agnostic, with stock selection taking precedence over rigid market-cap allocation. 

The strategy was launched on 19 December 2008 and is managed by Hiren Ved, Director and Chief Investment Officer of Alchemy Capital. He has more than three decades of experience in Indian equities. Alchemy Group, which has operated since 2002, currently reports approximately USD 1.2 billion in assets under management.

At its core, Select Stock follows a growth-oriented philosophy that evaluates business quality, earnings potential, management capability, competitive positioning and valuation. The strategy is intended for investors seeking a concentrated equity allocation over a 3-to-5-year investment horizon, while recognising that concentration can increase portfolio volatility and stock-specific risk.

Unlike a pooled investment product, PMS provides investors with direct ownership of the securities in their individual portfolio. The portfolio can also incorporate client-specific requirements within the investment approach and applicable mandate.

Alchemy Select Stock PMS: Key Facts

The benchmark for the strategy is BSE 500 TRI, in line with the applicable benchmark-selection framework. The strategy's portfolio is not constructed to mirror the benchmark; rather, the manager selects securities based on the investment process and the portfolio mandate.

The latest performance information available on the ALTPORT product page is sourced from APMI and is dated 30 June 2026. At that date, the reported strategy AUM was ₹4,874.80 crore. 

Important: The supplied product brief refers to a ₹5 crore minimum investment. However, the current Alchemy FAQ publicly states that the minimum ticket size for opening a new PMS account is ₹50 lakh, while some older product-distribution material specifically cited ₹3 crore or ₹5 crore for Select Stock. Therefore, the applicable minimum for a new Select Stock allocation should be confirmed from the latest strategy-specific disclosure/client agreement before publication or onboarding. 

Investment Philosophy and Stock-Selection Strategy

Alchemy Select Stock is built around a straightforward premise: a concentrated portfolio can give the investment team greater scope to express conviction in individual businesses.

The strategy seeks companies with the potential for long-term earnings growth and capital appreciation rather than attempting to replicate index weights. Alchemy describes the approach as market-cap agnostic, meaning the investment decision is driven primarily by the attractiveness of the business and its valuation rather than a predetermined large-, mid- or small-cap allocation. 

1. Growth at a Reasonable Price

Alchemy's broader investment philosophy is built around GARP — Growth at a Reasonable Price. The approach looks for businesses where expected growth can justify the valuation being paid.

This requires balancing two variables:

• The quality and sustainability of earnings growth
• The valuation at which the investment is made

A company with strong growth prospects may still be unattractive if expectations are already excessively reflected in its price. Conversely, a reasonably valued business may not qualify if its underlying growth prospects are weak.

The research process therefore considers revenue growth, EBITDA growth, cash-flow conversion, return ratios and other business-specific financial indicators. Valuation can be assessed using measures such as P/E, P/B, EV/EBITDA and DCF, depending on the nature of the company.

2. Bottom-Up Research With a Top-Down Overlay

The Select Stock process combines top-down and bottom-up research.

The top-down component helps the investment team understand broader economic, sectoral and industry trends. The bottom-up component then focuses on individual companies, examining their financial statements, business models, competitive position, management quality and future growth potential.

Alchemy's stated investable-universe process also evaluates:

• Historical and expected revenue and EBITDA growth
• Cash-flow conversion efficiency
• Core return on equity
• Management quality
• Corporate governance
• Competitive advantages
• Capital allocation
• Valuation

This framework is designed to move from a broad relevant universe towards a smaller investable pool and, ultimately, a concentrated portfolio.

3. Concentration Over Excessive Diversification

The strategy generally holds 8 to 14 stocks. Alchemy's own description notes that over-diversification can dilute the contribution of individual investments. 

That concentration has an important implication: the outcome of the portfolio can be meaningfully influenced by a relatively small number of securities.

For an investor considering Select Stock, this is not a minor technical detail. Concentration can increase the impact of both successful and unsuccessful stock selections. It therefore needs to be evaluated alongside the investor's overall asset allocation rather than viewed in isolation.

4. Portfolios Can Reflect Client Requirements

Select Stock is structured as a bespoke PMS. The portfolio manager can construct a client's portfolio from the investable universe at its discretion, subject to the applicable mandate and client-specific requirements.

This separate-account structure can create differences between individual client portfolios. Portfolio size, account-opening timing, client restrictions, cash flows and other factors can affect actual holdings and performance.

Portfolio Construction, Holdings and Market-Cap Allocation

The strategy does not impose a rigid market-cap allocation framework. Its objective is to identify companies with attractive growth potential across the market-capitalisation spectrum.

The supplied portfolio allocation data, representing the stated portfolio snapshot, is:

The sector allocation provided for the strategy is:

These allocations should be treated as a dated portfolio snapshot rather than permanent portfolio targets. Holdings, sector weights, cash levels and market-cap exposure can change as the portfolio manager reviews individual businesses and market conditions.

Selected Holdings

The supplied portfolio snapshot lists the following holdings:

Holdings are subject to change. Actual client portfolios can differ based on account size, timing of investment, client restrictions, portfolio construction and subsequent portfolio activity.

Risk and Ratio Analysis

The supplied strategy-level ratio data shows:

These ratios should be read as historical observations for the stated measurement period, not as forecasts of future risk or return.

A beta below 1, for example, does not mean the strategy cannot experience significant drawdowns. A concentrated equity portfolio remains exposed to market, sector, valuation and company-specific risks.

Alchemy Select Stock Minimum Investment, Fees and Exit Load

PMS fees are generally more complex than a single headline management charge. Depending on the applicable plan, Alchemy states that its products may use three fee structures:

1. Fixed Fee: Management fee only.
2. Hybrid Fee: Fixed management fee plus performance-linked fee.
3. Variable Fee: Performance-linked fee only.

The exact applicable rate, performance-fee terms, hurdle, high-water-mark provisions, expenses and other charges should be taken from the latest Alchemy Select Stock disclosure document and client agreement rather than relying on historical third-party listings. Alchemy confirms that its disclosure document contains the applicable fee structure and product-level details, and its fee calculator is available through its regulatory/compliance section. 

Alchemy also states that operating charges and expenses are charged at actuals. There is no lock-in period, although a 1% exit load applies when an investment is redeemed within one year of opening the account, according to its current FAQ. 

The general regulatory minimum for opening a PMS account is currently stated by Alchemy as ₹50 lakh. The strategy-specific ticket size for Select Stock should nevertheless be confirmed before onboarding because historical product material has cited higher minimums for this particular strategy. 

Eligible investor categories include resident individuals, HUFs, companies, LLPs, private trusts, NRIs, FPIs, partnership firms and other categories permitted under applicable PMS regulations. 

Alchemy Select Stock Investment Process

Alchemy's MATRIX framework provides a useful way of understanding how the investment process moves from an initial idea to portfolio action.

1. Idea Generation

The process draws on multiple inputs, including:

• Universal trackers
• Network inputs
• Independent channel checks
• Active trackers

The objective is to identify potential businesses and investment themes for deeper research.

2. Investment Process

Potential ideas move through a structured sequence:

Idea Generation → Research & Analysis → Investable Pool → Portfolio Construction → Review & Monitoring → Exit Strategy

The research stage evaluates financial performance, business quality, management, competitive position, governance and valuation before an investment enters the investable pool.

Portfolio construction then determines which opportunities merit inclusion and at what portfolio weight.

3. Intervention

The final layer involves:

• Investment team oversight
• Risk management
• Investment committee involvement

This creates a framework for reviewing investment decisions rather than treating portfolio construction as a one-time activity.

Risk Management Framework

Risk management operates across three levels.

1. Firm Level

Alchemy's framework includes:

• Performance-pattern analysis
• Pre- and post-trade checks
• Internal reviews
• Compliance and legal oversight
• Business-risk management

Statutory and legal risks are managed through the compliance and legal functions, with oversight from the Group Compliance Head.

2. Portfolio Level

Portfolio-level monitoring includes daily operational checks against the relevant mandate.

The fund manager evaluates strategy performance against the benchmark, while the CIO reviews strategy performance with the respective fund manager. Portfolio positioning and performance contribution are reviewed periodically, with investment actions considered where required.

3. Security Level

At the individual-security level, the process includes:

• Sectoral limits based on the mandate
• Individual-stock limits
• Monitoring of ownership at fund/strategy level
• Position-weight alerts when holdings approach permissible limits

For a concentrated strategy, this layer matters because an individual stock can have a larger impact on portfolio outcomes than it would in a broadly diversified portfolio.

Who May Consider Alchemy Select Stock PMS?

Alchemy Select Stock may be relevant to sophisticated investors who understand the characteristics of concentrated equity investing and are considering a long-term allocation framework.

The strategy may be considered by:

• UHNI investors seeking a concentrated equity allocation
• Family offices building differentiated sleeves within broader portfolios
• Large allocators who already have diversification across asset classes and managers
• Investors with a 3-to-5-year investment horizon
• Investors who can tolerate high equity-market and concentration risk

The strategy should not be evaluated solely on its historical returns. Investors should also examine portfolio concentration, valuation risk, liquidity considerations, drawdowns, fees, taxation, existing portfolio overlap and the role the allocation would play within their overall asset mix.

The minimum investment requirement should be confirmed from the latest Select Stock documentation before committing capital.

How Is Alchemy Select Stock Different From Alchemy High Growth?

Both strategies are managed by Alchemy Capital and have a growth-oriented investment framework, but their positioning is different.

Alchemy Select Stock is explicitly designed as a concentrated portfolio of around 8 to 14 stocks, with the manager taking high-conviction positions across market capitalizations.

Alchemy High Growth, by comparison, is positioned as a growth-oriented flexicap strategy focused on scalable businesses and reasonable valuations. 

There is also an important naming distinction. Until 31 August 2024, the Select Stock investment approach was known as Alchemy High Growth Select Stock. It subsequently became Alchemy Select Stock. 

Therefore, historical documents may contain the former name even though they refer to the same investment approach.

How to Access Alchemy Select Stock Information Through ALTPORT

Alchemy Select Stock is a concentrated PMS strategy where business research, valuation discipline and portfolio construction play a central role.

ALTPORT provides investors with access to information and facilitates conversations around PMS, AIF and other investment products. ALTPORT does not manage the Select Stock portfolio, select securities for the strategy or provide personalised investment advice.

If you are evaluating a concentrated PMS allocation, the practical next step is to review the latest strategy disclosure, fee structure, portfolio information, performance methodology and risk factors before making an investment decision.

Speak with an ALTPORT expert to access the relevant product information and understand the onboarding process.