Logic Behind the Latest Rebalance of Our Quant smallcases
Every rebalance cycle, we apply our quantamental models to assess which stocks stay, enter, or exit, based on underlying model factors like growth, quality, momentum, and trend strength. Here’s a breakdown of what changed this cycle and why.
Growth Multicap – Quant
High-growth multi-cap stocks with strong price trends
Launch Date: March 7, 2025
Rebalance Date: May 2, 2025
| Stocks Added ✅ | Segment | Market Cap Category | Profile |
|---|---|---|---|
| Firstsource Solutions Ltd | Outsource Services | Smallcap | BPM provider to healthcare, telecom, banking, and insurance sectors |
| Jubilant Foodworks Ltd | Restaurants & Cafes | Midcap | Operates Domino’s, Dunkin’, and Popeyes in India |
| Marico Ltd | Personal Products | Midcap | FMCG major behind Parachute and Saffola |
| Max Healthcare Institute Ltd | Hospitals & Diagnostic Centres | Largecap | Leading hospital chain in metro India |
These stocks have been added to the smallcase as they meet our model criteria, including high growth, fundamental soundness, and relative strength.
| Stocks Removed ⛔️ | Segment | Market Cap Category | Profile |
|---|---|---|---|
| Cummins India Ltd | Industrial Machinary | Midcap | Industrial engines and power systems provider |
| Indus Towers Ltd | Telecom Infrastructure | Largecap | Telecom tower infrastructure company |
| Jupiter Life Line Hospitals Ltd | Hospitals & Diagnostic Centres | Smallcap | Hospital operator with a focus on West India |
| Oberoi Realty Ltd | Real Estate | Midcap | Premium Mumbai-focused real estate developer |
These stocks were not satisfying model criteria specific to momentum, relative strength, or consistency in growth. Hence, they were excluded from the smallcase.
Quality Bluechips – Quant
High-quality bluechip stocks with strong price trends
Launch Date: February 21, 2025
Rebalance Date: May 2, 2025
| Stock Added ✅ | Segment | Market Cap Category | Profile |
|---|---|---|---|
| Marico Ltd | Personal Products | Midcap | FMCG major behind Parachute and Saffola |
This stock satisfies the model criteria linked with quality and price trend. Hence, it is getting added in the smallcase.
| Weightage Increased ⬆️ | Segment | Profile |
|---|---|---|
| Zerodha Gold ETF | Gold | An ETF tracking physical prices of Gold |
As insufficient stocks meet the defined criteria, our risk management framework allows us to include gold ETF to preserve capital until favorable conditions return.
| Stocks Removed ⛔️ | Segment | Market Cap Category | Profile |
|---|---|---|---|
| Infosys Ltd | IT Services & Consulting | Largecap | Global IT and consulting major |
| Persistent Systems Ltd | Software Services | Midcap | Digital engineering and cloud solutions company |
These stocks are not satisfying the criteria specific to the quality of the trend. Hence, it is being excluded from the smallcase.
Quality Smallcap – Quant
Quality smallcap stocks with positive momentum trends
Launch Date: December 02, 2020
Rebalance Date: May 2, 2025
| Weightage Increased ⬆️ | Segment | Profile |
|---|---|---|
| Zerodha Gold ETF | Gold | An ETF tracking physical prices of Gold |
As insufficient stocks meet the defined criteria, our risk management framework allows us to include gold ETF to preserve capital until favorable conditions return.
| Stock Removed ⛔️ | Segment | Market Cap Category | Profile |
|---|---|---|---|
| GHCL Ltd | Commodity Chemicals | Smallcap | Chemicals and textiles company focused on soda ash |
This stock is not satisfying the criteria specific to the quality of the trend. Hence, it is being excluded from the smallcase.
🧠 Why This Matters
Each rebalance reflects a disciplined approach backed by our proprietary quantamental models. If a stock no longer meets our model criteria, it’s removed. If fewer stocks pass the model criteria, we increase gold exposure until favorable conditions return. This systematic, bias-free approach helps investors stay aligned with long-term strategy and manage risk efficiently.
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