Alpha Top 10 - Large Cap Model is designed for investors seeking exposure to high-alpha large-cap stocks that have consistently outperformed their benchmark. Jensen’s Alpha, a measure of a stock’s ability to generate excess returns, is the primary selection criterion.

📌 Why This Strategy Works?

✔ Alpha Factor Dominance: Historical research shows that stocks with a track record of excess returns tend to continue outperforming in favorable market conditions.

✔ Rule-Based Approach: Fully systematic, ensuring no emotional bias in stock selection.

✔ Dynamic Exposure to Market Leaders: Monthly rebalance ensures exposure to the strongest-performing large-cap stocks.

✔ Stable & Liquid Portfolio: Nifty 100 stocks offer high liquidity with lower risk than mid & small caps.

📌 Risk Considerations

⚠ High Turnover Risk: Frequent rebalancing may lead to higher transaction costs.

⚠ Market Risk: Even high-alpha stocks can underperform in volatile conditions.

⚠ Liquidity Risk: Certain large-cap stocks may experience lower liquidity in stressed markets.

📌 Investor Profile

✅ Best suited for long-term investors (3+ years) who seek consistent outperformance over benchmark indices.

🚫 Not suitable for passive investors or those looking for low-volatility, defensive strategies.