Nifty_SM100

MMG Focused Multicap smallcase

The proprietary model selects stocks from a carefully defined universe comprising 1,500 publicly traded companies listed on the National Stock Exchange (NSE) of India. This universe represents over 90% of the total market capitalization of Indian equities, ensuring comprehensive market coverage across all capitalizations—large-cap, mid-cap, and small-cap. By including companies across sectors and sizes, the universe captures a wide spectrum of opportunities while maintaining liquidity and investability. The stock selection process is fully systematic, allowing the model to identify high-momentum, fundamentally strong, and trending companies from this broad and diversified base.

The multi-cap portfolio is built using a proprietary, rule-based investment system developed through deep research. Leveraging data science and technology, we analyze a universe of 1500+ NSE-listed companies covering over 90% of market capitalization. Our in-house algorithm screens stocks based on key quantitative factors like price strength, trend, and momentum, generating structured buy/sell signals that guide portfolio decisions.In addition to momentum, we emphasize fundamental strength—selecting companies that show consistent revenue and profit growth, low debt, and attractive valuations. Advanced statistical and mathematical models help optimize risk-return trade-offs, while academic research and white papers guide factor selection and portfolio construction.We combine data-driven models with qualitative checks—reviewing financials and governance practices to avoid companies with red flags. Preference is given to firms operating in industries with strong tailwinds expected over the next 3–5 years. This disciplined, systematic process ensures informed, unbiased, and consistent investment decisions.

The constituent selection process begins by evaluating a broad universe of nearly 1,500 NSE-listed liquid stocks, covering over 90% of market capitalization. A proprietary, rule-based system scans this universe using quantitative factors such as price strength, trend, and momentum to identify high-potential stocks that meet predefined criteria.Once the initial screening is complete, additional filters are applied to ensure quality and liquidity:• Liquidity checks remove illiquid stocks/ETFs that may pose execution risk.• Promoter pledge analysis eliminates companies where a large portion of promoter holdings is pledged.• Red flag screening excludes stocks under regulatory scrutiny (e.g., ASM/GSM lists), or those with adverse news flow, negative sentiment, or corporate governance concerns.Only those stocks/ETFs that pass through all these layers of filtering are considered for inclusion. This multi-layered, data-driven approach ensures that the final portfolio comprises high-quality, liquid, and fundamentally sound companies, while minimizing exposure to riskier or controversial names. The result is a refined set of constituents positioned for momentum-driven growth within a disciplined investment framework.

The portfolio consists of up to 20 carefully selected stocks, with exposure to top performers increasing organically as their market value grows relative to others. This strategy allows winning stocks to gain a larger share over time, harnessing momentum without the need for forced reductions. The portfolio’s average market capitalization is around ₹15,000 crores, focusing on liquid small-cap companies led by experienced and trustworthy promoters.Following a flexi-cap, multi-factor approach, the portfolio dynamically adjusts asset weights in response to current market conditions and factor performance. Equity investments emphasize growth and momentum drivers for capital appreciation, Regular rebalancing ensures the portfolio stays aligned with changing market trends, macroeconomic factors, and momentum signals.This balanced weighting methodology aims to deliver consistent outperformance with a moderate risk profile, allowing the portfolio to perform well across diverse market cycles and environments.

This smallcase will be rebalanced on an as-needed basis

MMG Focused Multicap smallcase Model

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Diversified Multi-Cap Portfolio of High-Growth, High-Conviction Ideas

MMG Focused Multicap smallcase Model

Overview

Stocks & Weights