What is the primary investment objective of the Karma Capital Highly Diversified strategy?

The primary objective is long-term wealth creation by building a highly diversified portfolio of 125 to 150 equity stocks across different sectors and market capitalizations. It uses quantitative filters to spot growth while using extreme diversification to eliminate stock-specific risks.

What are the fee structures applicable to this PMS product?

The fund charges a fixed fee structure of up to 2.5% P.A. For performance-linked returns, it operates on a variable fee structure that includes a 1.5% P.A. AMC fee, a 10% hurdle rate baseline, and a 20% performance fee sharing arrangement on excess returns.

Is there an exit load or a minimum investment requirement?

There is no exit load (listed as NA) applicable to this strategy based on current disclosure parameters. However, being a SEBI-registered Portfolio Management Service, it mandates a minimum ticket size threshold of ₹5,000,000 (₹50 Lakhs) for fresh client onboarding.

How does the fund manage concentration and market volatility risks?

The fund manages risk by completely avoiding highly concentrated positions, spreading its capital across roughly 125 to 150 distinct holdings. This structural design insulates the wider portfolio from sudden negative shocks in a single company or a particular sector.

For which type of investor is this equity strategy ideally suited?

This strategy is ideally suited for High Net Worth Individuals (HNIs) and institutional investors who possess a medium-to-long-term investment horizon of more than 2 years. It suits those who want broad equity exposure aligned with the BSE 500 TRI without the volatility of concentrated thematic funds.

KARMA CAPITAL HIGHLY DIVERSIFIED

Distributed through AltPort Experts. Comprehensive fund documentation can be accessed through our research team.

Karma Capital Advisors

Founded in 2005 by Nikhil Desai and Rushabh Sheth, Karma Capital Advisors is a Mumbai-based boutique investment firm specializing in Indian listed equities. It manages approximately â‚¹7,450 crores (USD 829 million) for global institutional and individual investors as of September 2024. The firm follows a disciplined, bottom-up "Growth at Reasonable Price" (GARP) philosophy to deliver long-term returns through high-conviction portfolios. Key offerings include Portfolio Management Services (PMS) like Wealth Builder and Lotus, as well as Category III Alternative Investment Funds (AIF). Karma Capital remains employee-owned, maintaining an independent, research-driven approach across market cycles.

Fund Snapshot

Parameter	Details
PMS Provider Name	Karma Capital Advisors Pvt Ltd.
Strategy Name	Equity
Product Name	Equity
Date Of Inception	15/12/2025
Age	5 Months
Benchmark	BSE 500 TRI
AUM (Cr)	₹16.14
Min. Inv. Amount	₹50,000,000
Fixed Fees Structure	Upto 2.5% P.A.
Variable Fees Structure	AMC: 1.5% PA; Hurdle rate: 10%; Performance fees: 20%
Exit Load	NA

Fund Purpose

The Karma Capital Highly Diversified Strategy focuses on selecting securities primarily from a wide universe of listed Indian equities without being rigidly restricted by its underlying benchmark. The core goal is to construct an expansive, well-diversified portfolio consisting of approximately 125 to 150 equity stocks spread across various market capitalizations and sectors. By maintaining a highly diversified footprint, the strategy actively aims to mitigate stock-specific and sector-specific concentration risks while seeking sustainable growth over a long-term investment horizon of more than 2 years.

Fund Philosophy

Broad Market Capitalization Agnostic Sourcing

The strategy intentionally avoids limiting its stock selection to a specific market cap or index tier. By operating with a benchmark-agnostic framework, it evaluates opportunities seamlessly across large-cap, mid-cap, and small-cap segments to capture growth wherever it presents the best risk-adjusted potential.

Disciplined Quantitative Security Selection

Security selection is driven by rigorous quantitative parameters rather than speculative trends. The fund emphasizes fundamental metrics such as clear earnings growth potential, strong market liquidity, and attractive relative valuations to ensure that every chosen stock aligns with strict financial baselines.

Comprehensive Stock and Sector Risk Mitigation

To protect investor capital from volatile swings, the fund builds a wide net of 125 to 150 individual securities. This deliberate structure reduces the impact of any single company underperforming or any individual industry facing economic cyclicality, stabilizing the overall portfolio trajectory.

Low Portfolio Churn and High Patience

Believing that true corporate value compounds over years, the fund explicitly avoids active churning or high-frequency day trading. Stocks are selected with a medium-to-long-term holding mindset, allowing underlying businesses sufficient time to realize their intrinsic business scale.

Structured Periodic Rebalancing

While the portfolio relies on a buy-and-hold framework, it does not remain completely static. The investment team carries out structured rebalancing on a periodic basis to re-align stock weights, capture structural valuation gains, and keep the baseline asset exposure closely mapped to the BSE 500 TRI benchmark.

	AUM(Cr.)	1M	3M	6M	1Y	2Y	3Y	4Y	5Y	Ince.
Performance	₹21.42	1.07	6.32	6.28	NA	NA	NA	NA	NA	5.17
Benchmark	NA	-0.09	3.86	1.43	NA	NA	NA	NA	NA	-0.93

AUM(Cr.)

Ince.

Performance

₹21.42

1.07

6.32

6.28

5.17

Benchmark

-0.09

3.86

1.43

-0.93