With great growth comes great dividends & greater momentum

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Kudos on starting your investment journey with stocks that have higher earnings growth with the Growth At A Fair Price smallcase!

But, what’s next on this journey, you ask?

Windmill Capital currently offers 15 smallcases as a part of their smallcase subscription, ranging from high-volatility, pure-equity strategies to low-volatility, asset allocation models.

Too many to choose the ideal options from, right?

Rest assured, we have done the legwork on the best-fit smallcases to invest in next, based on your original investment in the Growth At A Fair Price smallcase…

#1 Dividend Stars smallcase: Secondary Income in addition to Capital Appreciation

How do you make money from investing in stocks? If you answered – ‘from an increase in the stock prices’, you’re right, but not completely. There’s one more way to earn money from stocks besides price appreciation – dividends. Dividends are a share of the net profit which the company distributes to each shareholder.

A company is not liable to pay dividends but when it does, it can be a sign of a stable and growing business. It usually signals to the market that the company has enough cash to not only invest in its own growth but also distribute the excess to its shareholders.

However, when looking to invest in dividend-paying stocks, you shouldn’t make investment decisions based on a one-time dividend payout. Companies that provide regular dividend payouts and dividend growth tend to have a stable business model and endure economic cycles better are the way to go.

Note: Investors need to consider the fact that pure equity smallcases with a concentration of mid and smallcap stocks have a significant risk in the short term and is only suitable for long-term investors with a higher risk appetite.

Dividend Stars smallcase by Windmill Capital

#2 Value & Momentum smallcase: Power of Momentum coupled with Value Investing

Value & Momentum smallcase shortlists are fairly valued, growing companies whose prices have been witnessing positive momentum. During times of market crisis, stocks of fairly valued growing companies do not drop too much and help steady the portfolio. During bullish phases, momentum kicks in and helps the smallcase beat the broader market.

The Value & Momentum smallcase is a multi-factor smallcase that provides exposure to :

Value: Inexpensive stocks (relative to their fundamentals) tend to outperform their more expensive peers over the long term.
Momentum: Stocks whose price has run up recently will continue to see the further price rise.

Note: The smallcase predominantly has a mix of mid and smallcap stocks. A pure-equity strategy like this one comes with the risk of significant drawdowns in the short-term and is suitable for long-term investors with a higher risk appetite.

Value & Momentum smallcase by Windmill Capital

Chances are, you might have already made the right call and invested in one of these already!

With just 1 Windmill Capital subscription, you get access to 15 diverse smallcases to invest in!

The Windmill Capital Subscription Bundle provides great value at just ₹ 6000 for 1 year subscription or ₹ 2000 for 3 months

So, what are you waiting for? Get your Windmill Capital smallcase subscription today.

Happy Investing!

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Disclaimer: Investment in securities market are subject to market risks. Read all the related documents carefully before investing. 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. For more information and disclosures, visit our disclosures page here –https://windmillcapital.smallcase.com/#disclosures

Naveen K R

Senior Director, Windmill Capital | The content in this article is purely the author’s personal opinion and is for informational and educational purposes only. It 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. The views and opinions stated in the content belong to the author. Windmill Capital Private Limited does not uphold nor promote any of the views / opinions. | Windmill Capital Private Limited is a SEBI registered research analyst (Regn. No. INH200007645)

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(30 Jan 2023)

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