Nifty_SM100

EquiMomentum

This Smart Beta smallcase follows a multi-factor investing framework, combining Momentum, Value, and Fundamental Strength to build a high-quality, high-conviction portfolio. The strategy identifies stocks with strong recent price performance, attractive valuations, and stable business fundamentals—allowing momentum to be backed by financial strength.The stock universe is filtered through quantitative screens and fundamental criteria to ensure durability of trends and improved risk-adjusted returns.Selection Framework:✔ Momentum Factor – Focus on stocks showcasing strong recent price performance, positive trend continuation, and superior relative strength across time frames.✔ Value Factor – Preference for companies trading at reasonable valuations (e.g., low P/E, P/B, PEG) to avoid overextended or overheated momentum picks.✔ Fundamental Factor – Emphasis on revenue consistency, profitability metrics, and balance-sheet quality to ensure momentum is supported by underlying business strength.This three-factor, sector-balanced Smart Beta approach creates a well-diversified, high-momentum portfolio designed to capture short-to-medium-term outperformance while managing downside risk.Ideal for investors with a high risk appetite seeking a systematic, rules-based equity strategy.

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.✔ 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.✔ 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.

The constituent selection follows a structured multi-factor screening framework combining Momentum, Value, and Fundamental Strength. Stocks are shortlisted using quantitative filters and further refined through fundamental checks to ensure durability of trends and risk-adjusted performance.1. Momentum Screening • Identify stocks with strong recent price performance across short-to-medium-term periods. • Evaluate relative strength versus sector and market benchmarks. • Prioritize stocks maintaining consistent upward trends with supportive volume patterns.2. Value Screening • Filter stocks with reasonable valuations to avoid overheated momentum candidates. • Metrics may include low P/E, low P/B, attractive PEG, and discount to intrinsic value bands. • Ensures momentum is supported by acceptable entry valuations.3. Fundamental Strength Screening • Assess revenue growth consistency, profitability trends, and operational efficiency. • Prefer companies with healthy balance sheets and stable cash flows. • Exclude fundamentally weak names where momentum is unsustainable.This disciplined approach narrows the universe to high-quality, high-momentum stocks while maintaining valuation discipline and fundamental backing, resulting in a well-balanced Smart Beta portfolio.

The portfolio follows a dynamic weighting framework based on prevailing market conditions and the strength of momentum signals.During strong or trending market phases, the model allocates higher weights to high-conviction momentum stocks. This allows the portfolio to capture upside effectively by taking concentrated positions in the strongest performers.In volatile or uncertain market environments, the allocation becomes more diversified, distributing weights across a broader set of stocks to manage risk and reduce drawdowns.

This smallcase will be rebalanced on an as-needed basis

Equi Momentum Model

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20-30 Stocks: Momentum Stocks - Smallcaps & Midcaps

Equi Momentum Model

Overview

Stocks & Weights