InCred Small & Mid Cap Portfolio

RECOVERY 

Business doing well but market has discounted most of the positives – time correction. Investor sentiment is more optimistic.

BOOM

Business and market is doing well – Investors only focused on returns and ignore risk associated to generate the returns. Prepare yourself for the next cycle, try and minimize decision making.

BUST

Business and Markets not doing well. Events which are global or local start to unravel. Investorsthink about risk and not returns.

SLOWDOWN

Business not doing well but market has started to discount the recovery. Investors are still risk-averse.

Risk Management

Market Capitalization
Fund rarely invests in companiesthat have market capitalization less than 1000 Crs. The average market capitalization of companies in the fund is 6900 Cr.

Daily Average Volume
The purchase orsale of the stock must be executed within five days, ensuring that the traded volume does not exceed 30% of the stock’s daily average volume. This helps to avoid abrupt price spikes or drops.

Leverage Parameters
Excluding financials, the fund aims to invest in companies that have low Net Debt. Small and MidCap PMS has an average Debt/Equity of 0.01 and 15 companies are Net Debt free. Average Net Debt to EBITDA is 0.5.

1.BUY

• Great“ Business atfair value
• Good“ business at a discount to Intrinsic Value
• Avoid “Bad” business

2.SIZE

• Optimal Diversification
• Allocation based on conviction

3.SELL

• When incremental UpsideDownside ratio is unfavourable
• When the underlying business startsto deviate from the investment thesis

Our capabilities

Over 130+ years of investing experience between the senior management and core investment team.
Top quartile track record of the investment managementteam across market cyclesspanning over 18+ yearsin managing funds.
Having a sound investment framework helpsin superiorstock selection and minimizemistakes.
Strong in-house research with over 7 research analysts and 2 fund managers covering 200 stocks out of which 82 stocks are small cap and 41 are midcap stocks.
Out of our coverage we would have 72 plusstocks where there would be negligible coverage by the sell side hence we rely on our ability to ideate, screen, research and invest.