Name: EquiMomentum Smart Beta
Brand: smallcase
SKU: EREQMO_0007
Price: 100000 INR

EquiVision: Uniting low P/E, growth, and earnings for returns.

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EquiMomentum

EquiMomentum Smart Beta

Equity Research Equivision

This Smart Beta Smallcase focuses on momentum investing, selecting stocks with strong recent price performance, upward trends, and relative strength across multiple sectors. The universe is defined based on quantitative and fundamental filters to ensure sustained momentum and risk-adjusted returns.Selection Criteria:✔ Momentum Factor – Stocks exhibiting strong price performance, relative strength, and positive price trends over short to medium-term periods.✔ Sector Diversification – Includes financials, consumer discretionary, healthcare, industrials, and FMCG to reduce concentration risk.✔ Market Capitalization – Focus on mid and small-cap stocks with high growth potential, avoiding large-cap laggards.✔ Liquidity &amp; Volatility Control – Stocks with sufficient trading volume to ensure smooth entry and exit, avoiding excessively volatile stocks.✔ Fundamental Strength (Secondary Filter) – Preference for companies with stable revenue growth, profitability, and operational efficiency to support momentum sustainability.This quantitative and sector-balanced approach ensures a high-momentum, well-diversified portfolio, designed to capture short-to-medium-term market outperformance while mitigating excessive risk.

This Smallcase is built on the momentum investing principle, which aims to capture stocks exhibiting strong price trends and relative outperformance. Research suggests that momentum stocks tend to outperform in bullish cycles as they continue their upward trajectory due to investor sentiment, earnings growth, and sectoral tailwinds.Key Research Insights:✔ Momentum Factor Works – Studies show that stocks with strong recent price performance tend to continue outperforming in the short-to-medium term.✔ Sectoral Rotation Impact – This Smallcase diversifies across financials, discretionary, healthcare, industrials, and FMCG, reducing concentration risk while maximizing exposure to high-performing sectors.✔ Mid &amp; Small-Cap Growth Potential – Research indicates that momentum strategies work particularly well in mid and small-cap stocks, where price movements are often more pronounced due to market inefficiencies.✔ Liquidity &amp; Volatility Filters – Stocks with sufficient trading volumes and controlled volatility are selected to ensure smooth execution and risk management.✔ Periodic Rebalancing for Sustained Momentum – Momentum stocks require regular updates to stay aligned with market trends, ensuring that only stocks with sustained upward movement remain in the portfolio.This factor-driven, rules-based approach ensures systematic exposure to high-performing stocks, making it a Smart Beta – Momentum Smallcase ideal for short-to-medium-term market outperformance.

This Smart Beta Smallcase follows a momentum-based stock selection process, ensuring that only high-performing, liquid, and fundamentally stable stocks are included. The screening is based on quantitative momentum factors along with risk management filters.Screening Criteria:✔ Momentum Factor – Stocks must exhibit strong price trends, relative strength, and sustained upward movement over a defined period.✔ Liquidity &amp; Volatility Control – Selection is limited to stocks with sufficient trading volume and controlled volatility, ensuring smooth execution and minimizing excessive risk.✔ Market Capitalization – Focus on mid and small-cap stocks, where momentum strategies are most effective due to higher growth potential.✔ Sectoral Diversification – Exposure is spread across financials, consumer discretionary, healthcare, industrials, and FMCG to capture momentum across industries.✔ Fundamental Support (Secondary Filter) – Preference is given to stocks with stable revenue growth, profitability, and operational efficiency, ensuring momentum is supported by business strength.✔ No Extreme Overvaluation – Avoids stocks that may be in a speculative bubble phase, ensuring a balance between momentum and risk control.This structured screening process ensures that the Smallcase remains sector-diversified, high-momentum, and risk-adjusted, providing a strong framework for short-to-medium-term outperformance.&nbsp;

This Smallcase follows a sector-weighted momentum approach, ensuring optimized exposure to high-performing industries while maintaining diversification and risk control.Weighting Strategy:✔ Sector-Based Allocation –<ul><li>Higher Weight to Strong Momentum Sectors – Industries showing sustained price strength and growth trends receive greater allocation.</li><li>Balanced Exposure Across Key Themes – Financials, Consumer Discretionary, Healthcare, FMCG, and Business Services contribute to a diversified yet momentum-driven portfolio.</li></ul>✔ Stock-Level Weighting (Within Sectors) –<ul><li>Momentum-Adjusted Allocation – Companies with stronger price trends receive slightly higher weights within their sectors.</li><li>Near-Equal Weighting Within Sectors – Reduces concentration risk while maintaining sector momentum exposure.</li></ul>✔ Risk Management Considerations –<ul><li>Cap on Individual Stock Weight to prevent over-reliance on a single company.</li><li>Periodic Rebalancing to ensure the portfolio stays aligned with evolving momentum trends.</li></ul>This Smart Beta weighting approach provides a systematic, momentum-driven allocation, ensuring exposure to high-performing sectors while maintaining portfolio stability and long-term growth potential.&nbsp;

This smallcase will be rebalanced on an as-needed basis

EquiMomentum Smart Beta

EquiMomentum Smart Beta

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Equivision Consulting