Name: Wealth Compounder by Piper Serica
Brand: smallcase
SKU: PSRMO_0003
Price: 250000 INR

Our objective: Multiply wealth over a long period of time by investing in natural compounders of earnings that produce above-average absolute returns with below-average business volatility.
Our Strategy: Identify FAST GROWTH SECTORS that are benefitting from changing demographic profile and consumption patterns.
Invest in LEADERS in these identified sectors that COMPOUND earnings for a very long period of time with very little business volatility.

Nifty 500 Index

Wealth Compounder by Piper Serica

Taha

Multiply wealth by investing in natural compounders of earnings that produce above-average returns

Identify FAST GROWTH SECTORS that are benefiting from changing demographic profile and consumption patterns. Invest in LEADERS in these identified sectors that COMPOUND earnings for a very long period of time with very little business volatility.

1.&nbsp;Establish the COMPETITIVE STRENGTH of the Leader- We have developed a&nbsp;proprietary model that is based on the Michael Porter’s 5 Forces Model. We force-rank the industry leader across 35 different competitive parameters. A weighted average score is arrived through these rankings. 2.&nbsp;Establish a FAIR VALUATION range - We establish a fair value range for the leader using various valuation models. These models take into account margins, growth, management quality, capital allocation efficiency etc. These valuation models have been developed by us after years of application. 3. Risk Management &amp; Portfolio Allocation - The Porter model score is updated every quarter. We continuously track the model score and the valuation range to re-balance the portfolio by either skimming profits or by averaging down.

smallcases are checked for historical outperformance to ensure that only consistently outperforming strategies are selected

▪Our “Wealth Compounder by Piper Serica™” portfolio consists only of companies that are not only 'Leaders' in their respective industry but have constantly grown the competitive moat to protect their pole position. ▪We start by looking at the emerging sectors that will benefit from the rapidly changing demographic profile of India. We draw guidance from the sectors that have grown exponentially in China over the last 15 years. ▪With a very large share of young population that has same consumption aspirations as rest of the world, these emerging sectors will grow much faster than the traditional sectors. ▪ As global products and services become available in India we expect the leaders in these sectors to grow at a much faster pace and create much higher value than what leaders in traditional sectors would create.

Following parameters are considered while assigning weights to stocks in this smallcases<ul><li>Market capitalization</li><li>Management quality and vision</li><li>Theme exposure, revenues and earnings visibility</li></ul>

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.

The final screened stocks are then weighted according to the selected asset allocation algorithm

Wealth Compounder by Piper Serica

Overview

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Why should you invest in this smallcase?

Past Performance vs

Equity Multi Cap

About the Manager

Piper Serica