The investment universe is restricted to the Nifty Microcap 250 index, representing the smallest listed companies within the broader market. This segment provides exposure to emerging businesses at the earliest stage of their growth journey, offering significant upside potential alongside higher risk. By focusing on microcaps, the portfolio aims to identify companies with entrepreneurial dynamism and the ability to scale rapidly, while ensuring adequate liquidity and market representation for investability.

The research process is quantitative and rules-based, grounded in the study of price dynamics, volatility, and market structure. To enhance precision, sophisticated algorithms, including Machine Learning techniques, are applied selectively for pattern recognition and ranking refinement. This enables the model to capture subtle, non-linear relationships in market behavior while maintaining a robust, data-driven foundation.

Stocks are evaluated through a multi-step screening process that prioritizes trend persistence and risk-adjusted strength. Advanced statistical measures are used to filter out unstable or low-quality signals. This ensures that only the strongest candidates, demonstrating both leadership and stability, are selected for portfolio inclusion.

A systematic weighting framework is employed to balance risk and return. The methodology avoids excessive concentration in any single stock, while ensuring meaningful exposure to each selected constituent. This design maintains diversification within the concentrated portfolio and optimizes risk-adjusted performance.

This smallcase has a weekly rebalance schedule. Once every week, the research team reviews this smallcase and realign the weights with the selected asset allocation strategy for the next week

In addition to stock selection, the portfolio incorporates a dynamic allocation mechanism between equities and gold. This allocation responds to shifts in market risk, leaning into equities during supportive conditions and tilting towards gold during phases of uncertainty. The overlay strengthens capital protection while preserving the potential for long-term growth.

Micro Cap Quanto Momentum Model

Up to 10 stocks from Micro Caps with Dynamic Asset Allocation based on Market Regimes.

Micro Cap Quanto Momentum Model

Overview

Stocks & ETFs

At a Glance

Holdings Distribution