PrimeInvestor Finance Squared

The universe comprises NSE-listed financial stocks from banks, small finance banks, NBFCs, micro finance institutions, insurance companies, AMCs, market infrastructure institutions and their enablers with market capitalization above Rs. 1,000 crore.&nbsp;

&nbsp;From the universe, stocks are filtered based on detailed bottom-up analysis to identify the ones that fit our investment thesis to create our watch-list.&nbsp;Qualitative analysis forms a significant part of our stock selection process as we aim to identify the companies best placed to grow. Qualitative analysis is juxtaposed with the quantitative parameters to draw up our watchlist and build the portfolio.&nbsp;

The key financial parameters we use for stock selection are:<ul><li>Net earnings growth/ revenue growth</li><li>Yield on advances/NIM/ profitability</li><li>Return on Assets</li><li>Return on Equity</li><li>Asset Quality</li><li>Capital Adequacy Ratio</li><li>Market share gains/nature of competition</li><li>Free cash flow (for the non-lending basket)</li><li>Return on Capital employed (for the non-lending basket)</li></ul>

Growth, business fundamentals, and financial track-record are factors considered while fixing the individual stock allocation in the portfolio.&nbsp;The other key factor considered is the risk of the business and volatility in earnings.&nbsp;The portfolio is constructed using two baskets – the lending basket and the non-lending basket. Weights

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

Finance Squared Theme

Picks the high-growth stocks in every segment of the finance sector. 

Finance Squared Theme

Overview

Stocks & ETFs

At a Glance

Holdings Distribution

Closed smallcase