How we built Growth & Value Multicap Model

When it comes to long-term investing, simplicity and discipline often outperform complexity. The Growth & Value Multicap Model is built around this very idea. This structured, rules-based approach aims to uncover high-quality, growing businesses across the Indian market at a reasonable price.

This model portfolio draws inspiration from a globally popular investment style followed by thousands of retail investors. The original framework, outlined in the book The Naked Trader by Robbie Burns, focuses on buying profitable, growth-oriented companies with solid fundamentals while ruthlessly cutting out underperformers. We’ve adapted this time-tested approach to suit Indian market dynamics while retaining its original spirit of simplicity, consistency, and evidence-based decision making.

The Core Philosophy: Growth, Value, and Risk Management

The Growth & Value Multicap Model follows a few key principles that lie at the heart of its selection process:

✅ Growth: The companies included typically show a track record of consistent growth across key metrics like revenues, profits and dividend increases. These are businesses that are expanding, demonstrating operational strength and rewarding shareholders.

✅ Value: Valuations matter. The model considers companies that are reasonably priced relative to their profitability.

✅ Balance Sheet Strength & Positive Price Movement: The model screens for firms with manageable debt levels and an ability to comfortably meet their financial obligations. In addition, the model also factors in price momentum over the last year.

Marketcap & Sector Neutral Investing

Due to the filters applied, the portfolio tends to favour midcap and smallcap stocks, segments where earnings growth can lead to meaningful re-ratings. However, large-cap exposure is not ruled out. The model remains dynamic in its selection and doesn’t restrict itself by size or sector; instead, it focuses on fundamentals and fit.

This multicap structure gives investors the benefit of:

Diversification across market caps
Exposure to emerging leaders
Flexibility to respond to evolving market conditions

Quarterly Rebalancing to Stay True to the Strategy

Markets move. Businesses change. The model is designed to adjust accordingly.

Every 3 months, the portfolio undergoes a thorough rebalance:

Stocks that no longer meet the criteria are removed
New companies that qualify are added
Weights are adjusted based on updated fundamentals and price movement

This ensures that the portfolio remains aligned with the original strategy and doesn’t drift due to inertia or emotional bias.

Why Consider This Model Portfolio?

If you’re someone who:

Wants to invest in high-growth, fundamentally strong companies
Believes in long-term investing without constant tracking
Prefers a structured, research-backed approach over market speculation

…then the Growth & Value Multicap Model (previously known as The Naked Trader Model) could be a good fit for your portfolio.

It offers a way to participate in India’s growth story through a lens of quality, discipline, and simplicity, with the flexibility and transparency of direct equity investing.

Disclaimer: Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of a SEBI recognized supervisory body (if any) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

The content in these posts/articles is for informational and educational purposes only and should not be construed as professional financial advice and nor to be construed as an offer to buy /sell or the solicitation of an offer to buy/sell any security or financial products.Users must make their own investment decisions based on their specific investment objective and financial position and using such independent advisors as they believe necessary. Windmill Capital Team: Windmill Capital Private Limited is a SEBI registered research analyst (Regn. No. INH200007645) based in Bengaluru at No 51 Le Parc Richmonde, Richmond Road, Shanthala Nagar, Bangalore, Karnataka – 560025 creating Thematic & Quantamental curated stock/ETF portfolios. Data analysis is the heart and soul behind our portfolio construction & with 50+ offerings, we have something for everyone. CIN of the company is U74999KA2020PTC132398. For more information and disclosures, visit our disclosures page here.