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Alchemy Smart Alpha Micro & Small cap

Distributed through AltPort Experts. Comprehensive fund documentation can be accessed through our research team.
Category PMS
Fund Managers Alok Agarwal
Benchmark BSE 500 TRI
Share: f x in w

About Company

Alchemy Capital Management Pvt Ltd

Alchemy Group, a leading investment management firm in India, has been operating successfully since 2002. Founded by four seasoned equity market professionals, each with more than 30 years of experience, the group boasts a strong foundation. Under the leadership of its Chief Investment Officer, Hiren Ved, the team, which has collaborated for over two decades, has fostered a culture of excellence and established an institutional pedigree focused on consistently delivering superior performance to its clients. The Alchemy Group currently manages assets worth USD 1.2 billion. Alchemy is led by Co-Founder Hiren Ved, who also serves as the Director & CIO. With a strong continuity in investment philosophy and strategy, Hiren and the Alchemy team have cultivated a culture of performance excellence. This has been instrumental in maintaining a consistent track record in their investment strategy. Alchemy boasts a comprehensive network of relationships developed over decades. This network provides the team with valuable insights into stocks, sectors, businesses, and potential investment opportunities, ensuring they remain ahead of market trends.

What Is Alchemy Smart Alpha Micro & Smallcap PMS?

Alchemy Smart Alpha Micro & Smallcap is a Portfolio Management Services (PMS) strategy focused on micro- and small-cap listed Indian equities. The strategy combines Active + Quant investing, bringing together systematic quantitative screening with fundamental research to identify opportunities within a higher-volatility segment of the market.

The strategy was launched on 6 December 2023 and uses the eQGP — Environment, Quality, Growth and Price framework as part of its investment process. Its primary benchmark is the BSE 500 TRI, with the Nifty Small Cap 250 TRI as the secondary benchmark.

Alchemy Smart Alpha Micro & Smallcap is offered through a PMS structure; the Portfolio Management Services (PMS) guide explains separately managed accounts and minimum-investment rules.

Fund Snapshot at a Glance

Particular Details
Strategy Alchemy Smart Alpha Micro & Smallcap
Structure PMS / Separately Managed Account
Investment universe Micro- and small-cap listed Indian equities
Launch date 6 December 2023
Primary benchmark BSE 500 TRI
Secondary benchmark Nifty Small Cap 250 TRI
Minimum investment ₹50 lakh
Fund Manager Alok Agarwal
Investment approach Active + Quant
Framework eQGP — Environment, Quality, Growth and Price
Investment horizon Long-term
AUM / holdings Refer to the latest available factsheet for current figures
Fees / exit load Subject to current PMS client agreement and applicable terms

Dynamic information such as AUM, holdings and portfolio allocation should be read with the applicable factsheet date, as these figures can change over time.

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Alchemy Smart Alpha Micro & Smallcap Investment Strategy

The strategy combines quantitative analysis with active fundamental research to evaluate opportunities in the micro- and small-cap universe. This Active + Quant approach is intended to bring a systematic screening layer to the investment process while retaining fundamental assessment and investment judgment.

The strategy belongs to Alchemy Capital Management's Active + Quant product family.

The investment process focuses on identifying businesses where the combination of business characteristics, growth prospects and valuation may create an investment opportunity. Since micro- and small-cap companies can experience larger price movements and lower liquidity than larger companies, the investment process also considers business quality and valuation.

Quantitative Screening and Fundamental Research

Quantitative screening can help narrow a broad universe of listed companies by evaluating measurable characteristics. This systematic layer can be combined with fundamental research to examine the underlying business, industry position, financial profile and potential catalysts.

The objective is not simply to identify companies with strong historical numbers. Research may also consider whether a company's business fundamentals are improving, whether the valuation adequately reflects those fundamentals and whether there is scope for a change in market perception.

This combination of systematic screening and active research is particularly relevant in the micro- and small-cap segment, where information availability and market coverage can vary considerably between companies.

eQGP and Portfolio Rebalancing

The eQGP framework refers to four areas of evaluation:

  • Environment — the broader industry and business environment surrounding a company.
  • Quality — characteristics relating to business and company quality.
  • Growth — the company's potential for sustainable business and earnings growth.
  • Price — the valuation at which the security is available.

The framework provides a way to assess companies across multiple dimensions rather than relying on a single financial metric.

Portfolio positions may change as company fundamentals, valuations and market conditions evolve. Rebalancing decisions remain subject to the strategy's investment process and applicable portfolio-management guidelines.

Alchemy Smart Alpha Micro & Smallcap Portfolio, Holdings & Sector Allocation

The portfolio focuses on the micro- and small-cap segment of listed Indian equities. Because this investment universe can change materially with market movements, company-specific developments and portfolio decisions, current holdings and sector allocations should always be taken from the latest dated official factsheet.

The portfolio may contain companies across multiple industries, while the actual sector and security concentration can change over time. Investors reviewing the strategy should therefore distinguish between the stated investment universe and the portfolio's current composition.

The latest factsheet should also be used for current AUM, individual holdings, sector allocation and market-cap distribution rather than relying on historical portfolio data.

Minimum Investment, Fees and Exit Load

The stated minimum investment for Alchemy Smart Alpha Micro & Smallcap is ₹50 lakh.

Fees, performance-related charges, exit load, redemption conditions and other commercial terms are governed by the applicable PMS client agreement and current disclosure documents. These terms should be checked against the latest official documentation before investment.

For investors comparing PMS structures, the separately managed account format means that the portfolio is managed on behalf of the client under the applicable PMS mandate.

Key Risks of Micro- and Small-Cap Investing

Investing in micro- and small-cap equities involves several risks that investors should understand.

Liquidity risk: Smaller companies may have lower trading volumes. Exiting a position during stressed market conditions may therefore involve greater market impact or take longer.

Volatility risk: Micro- and small-cap stocks can experience significant price movements, particularly during changes in market sentiment.

Valuation risk: A company with attractive business prospects can still experience losses if its market valuation declines.

Concentration risk: A concentrated portfolio can be more sensitive to the performance of individual securities or sectors.

Model risk: Quantitative screening depends on the assumptions, data and methodology used. Changes in market behaviour may affect how effectively a quantitative process identifies opportunities.

Market-cycle risk: Micro- and small-cap stocks can behave differently across market cycles, and periods of broad risk aversion may disproportionately affect this segment.

Business and earnings risk: Company-specific changes in earnings, governance, balance sheets, competition or industry conditions can materially affect individual securities.

Comparing Alchemy's Active + Quant Strategies

For investors comparing Alchemy's different strategies, Alchemy Smart Alpha 250 provides a useful comparison because it applies the Active + Quant approach in a predominantly large- and mid-cap universe.

For a pure Quant small-cap comparison, readers can review Alchemy Alpha Smallcap.

This distinction is useful when comparing strategies because the investment universe, portfolio characteristics and risk profile can differ across market-cap segments.

Understanding PMS Performance Metrics

When reviewing PMS performance, investors may encounter different return measures such as XIRR, CAGR and TWRR. The XIRR vs CAGR vs TWRR guide can help readers interpret PMS returns and benchmark data correctly.

Performance should be considered alongside the relevant benchmark, investment period, portfolio mandate and applicable disclosures.

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Section: Performance Analysis
Fund Growth vs Benchmark Trend

Track how the fund has performed against its benchmark over time through a comparative line graph analysis.

Alchemy Smart Alpha Micro & Small cap

Benchmark: BSE 500 TRI

Section: Performance Comparison
Fund vs Benchmark Bar Graph

Compare fund returns and benchmark performance across multiple investment periods using a visual bar graph.

Section: Performance Comparison
Fund vs Benchmark Comparison Table

Review and compare fund returns against benchmark performance across different investment periods in a detailed tabular format.

Alchemy Capital Management Pvt Ltd

AUM(Cr.) 1M 3M 6M 1Y 2Y 3Y 4Y 5Y Ince.
Performance ₹34.26 10.46 9.19 14.59 18.47 -1.93 NA NA NA 10.23
Benchmark NA -0.09 3.86 1.43 4.72 -0.11 NA NA NA 9.54
Section: Fund Leadership
Meet the Fund Managers

Learn about the experienced fund managers responsible for investment decisions, portfolio strategy, and long-term fund performance.

Alok Agarwal

Alok Agarwal

He is the current APMI-listed fund manager for the strategy. He has more than two decades of experience in equity fund management and joined Alchemy in 2022 after previously working with PGIM India AMC, Deutsche Asset Management, KR Choksey Securities, Tata Group and Pinnacle Academy. He holds CA, CFA and CMT qualifications along with a Master's in Commerce and Finance.

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Section: Help & Support
Frequently Asked Questions

Find answers to common questions about fund investments, performance, portfolio strategy, and investor services.

Alchemy Smart Alpha Micro & Smallcap is a PMS strategy focused on micro- and small-cap listed Indian equities. It combines Active + Quant investing with the eQGP framework covering Environment, Quality, Growth and Price. The strategy was launched on 6 December 2023 and uses the BSE 500 TRI as its primary benchmark.

Yes. The strategy is designed around the micro- and small-cap equity universe. This gives the portfolio exposure to a segment of the Indian market that can have higher volatility, lower liquidity and greater company-specific risk than larger-cap equities.

Active + Quant combines systematic quantitative screening with active fundamental research. Quantitative tools can help identify and rank potential opportunities, while fundamental analysis evaluates business quality, growth characteristics, valuation and other company-specific factors.

eQGP stands for Environment, Quality, Growth and Price. It provides a framework for assessing companies across their operating environment, business quality, growth characteristics and valuation. The framework forms part of the strategy's investment process.

The BSE 500 TRI is the primary benchmark for Alchemy Smart Alpha Micro & Smallcap, while the Nifty Small Cap 250 TRI is the secondary benchmark. Benchmark comparisons should be considered alongside the strategy's investment mandate and market-cap universe.

The minimum investment is ₹50 lakh. Investors should also review the latest PMS documentation for eligibility requirements and applicable client terms before proceeding.

Alok Agarwal manages Alchemy Smart Alpha Micro & Smallcap. His investment process incorporates active research, quantitative analysis and the eQGP framework.

The strategy combines quantitative screening with active research. Potential investments may be evaluated using factors relating to the business environment, quality, growth and price, followed by further assessment of company-specific fundamentals and valuation.

Portfolio changes are made as part of the strategy's investment process. Rebalancing may reflect changes in company fundamentals, valuations, market conditions and the assessment of individual opportunities. Specific portfolio changes should be evaluated using the latest factsheet.

Current holdings and sector allocations can change over time and should therefore be checked against the latest dated portfolio disclosure or factsheet. Historical holdings should not be treated as the current portfolio.

Smart Alpha Micro & Smallcap uses an Active + Quant approach and focuses on the micro- and small-cap universe. Alchemy Alpha Smallcap provides a comparison for investors looking at a pure Quant small-cap strategy.

Smart Alpha Micro & Smallcap focuses on micro- and small-cap equities, while Alchemy Smart Alpha 250 operates in a predominantly large- and mid-cap universe. Both strategies use an Active + Quant approach, but their investment universes and portfolio characteristics differ.

Fees and exit-load provisions are governed by the applicable PMS client agreement and current disclosure documents. Since commercial terms can change, investors should request and review the latest applicable PMS documentation before making an investment decision.

The strategy's performance should be evaluated using the performance module and latest official disclosures displayed on the page. The BSE 500 TRI is the primary benchmark and the Nifty Small Cap 250 TRI is the secondary benchmark. Past performance does not indicate future results.

Key risks include liquidity and impact-cost risk, higher equity-market volatility, valuation risk, concentration risk, model risk, business and earnings risk and market-cycle risk. Micro- and small-cap companies can also be more sensitive to changes in investor sentiment and broader market liquidity.

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