Nifty_SM100

C3_CAGR_ExC4Stocks_March - Fixed

Overall universe is top 1000 listed companies. However, each strategy begins with a clearly defined universe.<ol><li data-list="bullet">Largecap Ascend draws from larger companies, ensuring scale, liquidity, and institutional quality.</li><li data-list="bullet">Midcap Maestro and Midcap Prime operate in the ₹30,000–40,000 crore average market-cap range, balancing growth with resilience.</li><li data-list="bullet">Smallcap Sharp and Smallcap Surge focus on dynamic, high-potential companies averaging ~₹20,000-30,000 crore, often in consumer or capital-intensive sectors.</li></ol> This structured approach anchors the portfolios in relevant, investable universes aligned to each market-cap theme.

The backbone of all five strategies is the MAGIC 2.0 engine, powered by 25 years of market data and over 3,00,000 investment rules tested. Extensive backtesting across rolling periods ensures that the chosen rules are robust across economic cycles. Each product is designed to capture a specific outcome - stability in largecaps, quality growth in midcaps, or high-conviction alpha in smallcaps - while adhering to the same systematic process. This research-driven approach eliminates bias, focuses on evidence, and ensures that strategies are scalable and repeatable.

Screening relies on a disciplined rule-set.<ol><li data-list="bullet">Largecap Ascend emphasizes capital efficiency (ROCE &gt;40%, ROE &gt;35%),</li><li data-list="bullet">Midcap Maestro targets growth momentum and cash conversion (PAT CAGR &gt;15–25%, CFO CAGR &gt;20%),</li><li data-list="bullet">Midcap Prime filters for improving ROCE/ROE and strong CFO/PBIT in cyclical sectors.</li><li data-list="bullet">Smallcap Surge applies strict growth + valuation hurdles (PAT CAGR &gt;37%, Price/CFO ≤16),</li><li data-list="bullet">Smallcap Sharp captures persistent earnings growth (20–25% CAGR) with rising ROE.</li></ol> Only companies consistently passing these filters enter the portfolios.

<ol><li data-list="bullet">Weighting in all five strategies is rule-based and formula-driven, removing subjective judgment. The framework follows three key principles:</li></ol> <ol><li data-list="bullet">Rule Score Integration – Each stock is assigned a composite score based on the strength and consistency of rule outcomes (capital efficiency, growth, cash flow, valuation). Higher scores lead to proportionally higher weights.</li></ol> <ol><li data-list="bullet">Risk Controls – Position sizes are constrained by systematic caps:</li><li data-list="bullet">Single stock cap: 8–12% depending on product.</li><li data-list="bullet">Sector cap: 25–30% to ensure balance across industries.</li></ol> <ol><li data-list="bullet">Minimum inclusion threshold: stocks below a defined rule-score cut-off are excluded, regardless of size.</li></ol> Dynamic Rebalancing – Weights are recalculated periodically (quarterly/half-yearly) based on updated rule outcomes and financial data. This ensures allocations shift towards businesses with improving fundamentals and away from those showing deterioration. Product-specific tilt:<ol><li data-list="bullet">Largecap Ascend: Bias towards stable, compounding leaders.</li><li data-list="bullet">Midcap Prime &amp; Maestro: Balanced weighting between growth scores and valuation discipline.</li><li data-list="bullet">Smallcap Sharp &amp; Surge: Tilted towards earnings momentum but moderated by valuation and liquidity filters.</li></ol> This system creates objective, repeatable, and transparent portfolio weights — driven entirely by data, not discretion.

This smallcase has a quarterly rebalance schedule. Once every quarter, the research team reviews this smallcase and realign the weights with the selected asset allocation strategy for the next quarter

FidelFolio K2 Equity Access Quant

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FidelFolio K2 Equity Access Quant

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