SVKM'S Narsee Monjee Institute of Management Studies School of Business Management Investment Analysis and Portfolio Management

SVKM’S Narsee Monjee Institute of Management Studies
School of Business Management
Investment Analysis and Portfolio Management
Portfolio Management
Trimester 4
Group Project
Made By- Group 3
Pranav Batra A007
Rishika Reddy A014
Vishvajit Deshmukh A015
Anubhav Dhuliya A016
Utkarsh Shukla A055
Alok Vikram Singh A056

Investment Philosophy
We seek to give your investments the stability of well-established firms along with the growth
potential of meticulously selected companies that have the potential to be future leaders. We believe
that stock-picking abilities and patient investing are capable of generating better and consistent returns
in the long run.
Thus, our investment approach aims to participate in high-quality businesses up to a reasonable price
and hold them for a long time.
Time Horizon: 3+ years
Asset Allocation
Type of Stocks Indicative Allocation (% of Net Assets) Risk Profile
Minimum Maximum
Growth/Value Stocks 70% 80% Low-Moderate
Young companies/high 20% 30% Moderate-High

growth/Entrepreneur Stocks
(high potential)
Investment Process
Our investment philosophy is two-pronged.

A portion of our funds will be invested in companies that are young and promising (high potential).
These companies will need to fulfil a stringent set of criteria before making the cut. The earnings from
these companies will boost the earnings obtained by the investors.
The other portion will be invested in sustainable growth companies that will ensure stable year on
year returns. These companies will be selected on the basis of a thorough bottom-up approach. Thus,
we will be diversifying the investments across sectors as well as reducing the risk.
Growth/ Value Stocks

The ideal growth stocks will be identified using a 3 step filter approach -
1. Perform various balance sheets, income statements and auditors check to filter out companies
involved in financial statement manipulations.
2. Identify companies with robust performance over the past 10 years. The performance of the
companies will be studied using 3 basic parameters - business model, financial performance,
and governance
(i) Financial performance - Parameters such as Consistent growth in top and bottom line,
earnings growth consistent with growth in sales, ROCE, ROE, and ROA along with the
growth of assets will be considered.
(ii)Governance - Stable and experienced management with a focus on long term strategic
growth.
3. From the remaining companies, zero in on the companies which are industry leaders or have
high barriers to entry to ensure the high return and low-risk exposure.
High Potential Stocks
A more stringent process will be used to identify the ideal High Potential stocks due to the high-risk
exposure of the portfolio.
1. The performance of the stock based on the above-mentioned parameters ( for the past 3-5
years, unlike ten years for growth stocks ) will be conducted as a part of the bottom-up
analysis.
2. A careful top-down analysis will also be done after that to benchmark and determine the true
future potential of the company.
3. A thorough analysis of the industry of the stocks would be conducted to determine its future
potential and uncertainties.
Benchmark Index - Nifty 500
Since our investment universe will consist of stocks in the Nifty 500 and our investments will not be
concentrated in any company, our benchmark will be the Nifty 500 index.
Rebalancing
The portfolio weights will be checked every fortnight to ensure that they align with the investment
mandate of the fund. If there is a discrepancy, the rebalancing of assets will be carried out to get back
to the target weights.
Fee
Fixed Management Fees 1.1% of AUM(payable quarterly)
Upfront Fees 0.5% of Asset Value
Custodian Charges 0.2% of Asset value
Transaction Fee NIL
Exit Load 1.5% (1st year), 1.25% (2nd year), 1% (3rd year)
Profit-sharing
Return (Rs.) Profit Commission (% of

return)
< 25,000 0%
25,000 to 50,000 30%

Range
50,000 to 75,000 27%
75,000 to 1,00,000 22%
> 1,00,000 20%

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SVKM’S Narsee Monjee Institute of Management Studies

School of Business Management

Investment Analysis and Portfolio Management

Made By- Group 3

Pranav Batra A007

Rishika Reddy A014

Vishvajit Deshmukh A015

Anubhav Dhuliya A016

Utkarsh Shukla A055

Alok Vikram Singh A056

Time Horizon: 3+ years

Type of Stocks Indicative Allocation (% of Net Assets) Risk Profile

Growth/Value Stocks 70% 80% Low-Moderate

Young companies/high 20% 30% Moderate-High

Our investment philosophy is two-pronged.

Growth/ Value Stocks

Fixed Management Fees 1.1% of AUM(payable quarterly)

Upfront Fees 0.5% of Asset Value

Custodian Charges 0.2% of Asset value

Transaction Fee NIL

Return (Rs.) Profit Commission (% of

25,000 to 50,000 30%

75,000 to 1,00,000 22%

> 1,00,000 20%

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