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Alchemy Smart Alpha Micro & Small cap

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Category PMS
Company Alchemy Capital Management Pvt Ltd
Fund Managers Hiren Ved
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.

Fund Snapshot

Fund Attribute Details
Strategy Name Alchemy Smart Alpha Micro & Small Cap
Asset Manager Alchemy Capital Management Private Limited
Structure Type Portfolio Management Service (PMS) – Discretionary
Regulatory Authority Securities and Exchange Board of India (SEBI)
Inception Date December 06, 2023
Fund Manager Alok Agarwal
Minimum Investment ₹50 Lakhs (Statutory minimum for Indian PMS platforms)
Primary Benchmark S&P BSE 500 TRI (Regulatory requirement)
Secondary Benchmark Nifty Smallcap 250 TRI (Reflective of actual universe)
Investable Universe Bottom 750 out of the top 1000 listed companies by market cap
Asset Allocation Up to 100% in Small & Micro-caps (typically ~80%+ Small/Micro)

Investment Philosophy

Alchemy Capital follows a structured, research-driven investment philosophy focused on long-term wealth creation through equities:

  • Growth at Reasonable Price (GARP) Core philosophy combines growth investing with valuation discipline—identifying high-quality businesses available at reasonable valuations. 
  • Bottom-Up Stock Selection Primary focus is on company fundamentals, with stock picking driven by deep research rather than macro speculation. 
  • Blend of Top-Down & Bottom-Up Approach While stock selection is fundamental-led, macro trends and sector outlooks are also considered to enhance risk-reward balance. 
  • High-Conviction Portfolio Construction Portfolios are built with a limited number of carefully selected stocks, ensuring meaningful allocation to best ideas. 
  • Focus on Quality & Scalability Preference for companies with strong management, scalable business models, and sustainable competitive advantages. 
  • Long-Term Investment Horizon Emphasis on compounding wealth over time by staying invested through market cycles rather than chasing short-term trends. 
  • Disciplined Risk Management Continuous portfolio review, valuation checks, and timely exits when the investment thesis weakens. 
  • Consistency Across Market Cycles Objective is to deliver sustainable, risk-adjusted returns with a steady investment approach rather than opportunistic trading. 
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 ₹36.29 -11.00 -12.19 -8.68 -4.57 -2.19 NA NA NA 0.61
Benchmark NA -11.37 -13.94 -9.62 -3.12 1.32 NA NA NA 5.06
Section: Fund Leadership
Meet the Fund Managers

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

Hiren Ved

Hiren Ved

Hiren Ved, an equity market veteran, serves as the Director & CIO at Alchemy Capital Management where he has been leading the firm’s Asset Management business. With over 30 years of experience in the Indian equities market, Hiren has developed a sustainable long-term investment philosophy based on fundamental research. He is known for his deep sector knowledge, bottom-up research skills and stock picking abilities. He holds a graduate degree in Accounting from Mumbai University and a post-graduation in Management & Cost Accounting from The Institute of Cost Accountants of India.

Section: Help & Support
Frequently Asked Questions

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

1. What is the core investment approach of the Alchemy Smart Alpha Micro & Small Cap strategy? +

The strategy focuses on generating aggressive, long-term capital appreciation by identifying and investing in fast-growing under-researched companies in the bottom tiers of the Indian stock market. It limits its active investable universe to the bottom 750 companies out of the top 1000 stocks listed by market capitalization. The fund targets businesses that have passed early startup failures and are poised to grow rapidly from micro to small or mid-sized enterprises.

2. How does the fund utilize its unique eQGP selection framework? +

The portfolio relies entirely on Alchemy's quantitative eQGP framework to remove human emotional bias from small-cap stock picking. The "Environment" metric shifts the portfolio to aggressive positioning during risk-on market macro environments and tightens into a defensive stance when systemic liquidity or interest rates indicators trend risk-off. "Quality" filters analyze capital efficiency, leverage, and operating cash flows. "Growth" scores expanding corporate earnings power, while "Price Action" dynamics optimize final entry and exit triggers.

3. How is the actual stock selection and portfolio construction executed? +

The quantitative engine processes all the candidate stocks within the investable universe and scores each entity across the specific quality, growth, and price action metrics. The underlying relative weights applied to these components are heavily guided by the master macro environment score. After completing the data processing cycle, the final high-conviction portfolio is built from the top 25 stocks possessing the highest composite quantitative score.

4. What are the top stock holdings in the portfolio under this systematic engine? +

The strategy heavily concentrates its asset weights into the top-scoring companies to maximize performance edge, though individual names shift automatically based on algorithmic rebalancing scores. According to recent portfolio data, major high-weight institutional allocations feature prominent names such as Multi Commodity Exchange of India (MCX), Jayaswals Neco Industries, Gujarat Mineral Development Company (GMDC), Force Motors, and DCB Bank.

5. Who is the ideal investor for this strategy and what is the exit cost framework? +

This strategy belongs to the highest tier of the equity risk spectrum because micro and small-cap stocks are susceptible to immense liquidity challenges and sharp drawdowns during broader market corrections. It is engineered exclusively for high-net-worth individuals and family offices who have a minimum investment horizon of 3 to 5 years to let business growth cycles mature. Liquidating assets early within the first 12 months from the date of deployment triggers a standard exit load fee of 1.00%, which scales down to zero after completing one full year.

Section: Contact Us
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Disclaimer: Investing in AIF, PMS, Gift City or Mutual Fund is subject to market risk. Please read the related documents carefully. Past performance does not guarantee future results and there is no assurance that the managed accounts will necessarily achieve their objectives. Actual portfolios may differ as a result of account size, client-imposed investment restrictions, the timing of client investments and market, economic, and individual company factors. We at ALTPORT do not guarantee any returns in the hands of investors, nor do we take any sort of accountability for the performance of the scheme.