High growth-focussed investing, with systematic protection when markets turn
Investment Rationale
Reasonably valued companies witnessing earnings growth with dynamic allocation to gold and debt for downside protection.
- Growth companies often reinvest their earnings into numerous opportunities instead of paying dividends. Their rapid business expansion and escalating earnings typically result in higher valuations.
- However, prudent investment dictates a balanced approach to pricing. Regardless of a company's excellence, it is crucial to avoid overpaying; this is especially true for growth companies, where keeping valuations in check is important.
- The equity portion is a carefully curated selection of high-growth companies available at reasonable valuations, with higher ROCE and healthy profit margins.
- Markets, however, go through prolonged downturns where even good businesses see sharp price declines. The smallcase addresses this by dynamically allocating to gold and debt when market signals weaken, preserving capital when equity exposure is unwarranted.
- The result: participation in growing companies on the upside, with meaningful protection on the downside. A smoother wealth creation journey without the need to time the market.
