About the smallcase
This is an asset allocation version of the Growth at a Fair Price smallcase.
- The underlying theme of the smallcase mimics the pure equity version smallcase “Growth at a fair price”
- Generally, growth companies have a lot of investment opportunities to reinvest their earnings and not pay dividends. A robust business and rising earnings allow them to command high valuations
- But, everything has a fair price and irrespective of the quality of the product, one should never overpay. This rule is applicable in the case of growth companies as well
- Such companies are good investment opportunities, however, because of their high valuations, it is difficult to judge whether they are fairly priced
- Equity portion of this smallcase is a collection of companies experiencing earnings growth and witnessing margin improvement
- In addition, only the companies experiencing an increasing return on capital, and available at justifiable valuations are selected
- To reduce the risk of the smallcase, we include other asset classes like gold and debt as well which is not done in the original smallcase. Thus, this provides better risk-adjusted returns, especially during market turmoil
This smallcase is suitable for those who want the benefit of the “Growth at a fair price” smallcase strategy with added protection of asset allocation to safeguard against prolonged market downturns. This version of smallcase reduces fluctuation in portfolio value while providing a smooth wealth creation journey.
Live Performance vs
Oct 30, 2021
Note: Live performance includes rebalances. It is a tool to communicate factual return information and should not be seen as advertisement or promotion.