Why should you invest in this smallcase?

Invest above 10 lakhs in this strategy via Craving Alpha Indravajrah


Rebalances: Monthly | #Stocks: 18


Suitable- for those investing less than 30% of liquid net worth with no plan to liquidate within at-least SIX MONTHS


Investment Rationale:

We choose the strongest company across sectors and use proprietary calculations and models to reach such conclusion. While the stock selection is barely 20% of the work, 80% is the capital allocation which is derived through an algorithm.

The algorithm based factor investing ensures protection from the following issues:

  • Over-Diversification or Concentration- Since each sector is represented, the portfolio is never exposed to concentration risk from a single industry. Only the major sectors/ industries are invested into, hence the portfolio is scalable and not exposed to liquidity risk.
  • Biased towards a stock- The system is extremely factor specific and 'Stock names' are ignored from the initial research, so that there are no bias or favouritism towards any specific stock.
  • Momentum Based Rebalancing- The portfolio rebalances based on Momentum Adjustment, viz- adds weight to the outperformer from the underperformer.


Each stock put in the portfolio has to go through a "fragility test", to ensure how they behaved in the past when confronted with adverse situations.

Know how this smallcase was created

Factsheet 

Download key points about this smallcase

Created by Craving Alpha

Past Performance vs 

1m3m6m1y3y5ylivemaxSIP
Value of ₹ 100 invested once on
inception of this smallcase

Sep 1, 2015

would be
Craving Alpha Sector Advantage -v2
₹ 467.62
Equity Smallcap
₹ 211.47
201620172018201920202021100200300400

Launch

Note: Past performance graph includes changes due to rebalance, events like stock splits & mergers. Also, past performance doesn't guarantee future returns