This smallcase invests in 15-22 Indian companies that are well-positioned to benefit from the government's self-reliance or "Aatma Nirbhar Bharat" initiative. It focuses on finding high-quality companies trading at reasonable valuations. The smallcase has outperformed the broader Indian mid and small cap equity market since its inception in August 2018, with lower risk as measured by sharper ratio. It is rebalanced on a quarterly basis.
This smallcase invests in 15-22 Indian companies that are well-positioned to benefit from the government's self-reliance or "Aatma Nirbhar Bharat" initiative. It focuses on finding high-quality companies trading at reasonable valuations. The smallcase has outperformed the broader Indian mid and small cap equity market since its inception in August 2018, with lower risk as measured by sharper ratio. It is rebalanced on a quarterly basis.
This smallcase invests in 15-22 Indian companies that are well-positioned to benefit from the government's self-reliance or "Aatma Nirbhar Bharat" initiative. It focuses on finding high-quality companies trading at reasonable valuations. The smallcase has outperformed the broader Indian mid and small cap equity market since its inception in August 2018, with lower risk as measured by sharper ratio. It is rebalanced on a quarterly basis.
This smallcase invests in 15-22 Indian companies that are well-positioned to benefit from the government's self-reliance or "Aatma Nirbhar Bharat" initiative. It focuses on finding high-quality companies trading at reasonable valuations. The smallcase has outperformed the broader Indian mid and small cap equity market since its inception in August 2018, with lower risk as measured by sharper ratio. It is rebalanced on a quarterly basis.
Invest in stocks that will bene it from Aatma Nirbhar Bharat theme! (Rec amt 5-10 lakhs)
2Y CAGR High Volatility 67.30% Since: March 20, 2020
smallcase rationale Invests in 15-22 companies that can Multiply Your Wealth in the next 2-4 years.
Theme:
-AatmaNirbhar Bharat- Policy Formulated by PM of India to make India a "bigger
and more important part of the global economy" pursuing policies that are e icient, competitive, resilient and being self-sustaining and self-generating.
-China Plus One- Is the business strategy to avoid investing only in China and diversify business into other countries. Many companies are looking to diversify their manufacturing into countries like India as a part of their de-risking strategy.
-Production Linked Incentive Scheme- Extends an incentive of 4% to 6% on
incremental sales (over the base year) of goods manufactured in India and covered under target segments, to eligible companies, for a period of ive (5) years
-Make in India-Initiative to encourage companies to manufacture in India and
encourage dedicated investments into manufacturing.
-Government initiatives like Anti Dumping Duty, Import Licensing
High Quality Right Price Companies
-Strong Balance Sheet and Low Debt on books.
-Good Management integrity, capability and performance track record.
-Available at Reasonable Valuations
-Multi-cap Strategy
-Announcements, Results, News of the companies are regularly researched
Created by SEBI Reg. Number Subscription Type
Green Portfolio INH100008513 Paid
Invest in this smallcase here
Methodology
De ining the universe
All the companies which will reap bene its from government schemes such as Atmanirbhar Bharat, Import substitution, and PLI are a part of the universe.
Research -Green Portfolio is a SEBI Registered Portfolio Manager with - Founders having 3 generations of investing experience.
We have a research team of over 8 members including CA's,
MBA's,
Economics Honours graduates.
-The team does screening of inancial data of all the listed
companies and selects the companies where detailed research is
to be done basis
HQRP Philosophy.
-Detailed research report is prepared basis study of Annual
Report, Quarterly Financial Statements, Company
Announcements, industry and
company news, business potential, valuations, etc.
-Daily tracking of stocks is done by studying the news items and
corporate announcements.
-Quarterly research report is prepared for each stock under
research.
-We use Ace Equity and Ace MF database to study the inancial
statements.
-On-ground research is done by interacting with the
Distributors, Employees, Customers, and Competitors on a
periodic basis to
understand the business direction.
Historical back-testing Green Portfolio smallcases are checked for historical outperformance to ensure that only consistently outperforming strategies are selected.
Our team has over 30 years of successful track in creating wealth
from stocks. We use our learnings from the past to select the best multi-bagger stocks.
We also use a disciplined approach to select stocks, re-balance
them, keep liquid money for opportunities and do staggered buying and selling.
Constituent Screening Our Screening is done basis "HQRP" Philosophy
Buying High-Quality Companies “HQ”
- The company should have been in business, successfully,
for a long period of time.
- The company should be pro itable.
- Debt/ equity should be below 1 times.
- Revenues should be growing.
- The Balance Sheet should be strong.
- The business should have moats, or entry barriers- i.e.
Capital, technology
- The company should be utilizing the cash generated from
the business, in the best interest of shareholders.
- No ignorance towards safety, environment and pollution
issues
- Operating margins should be above the industry average.
- The taxes paid should be near the rate prescribed by the
Government
- The company should be investing in product innovation,
R&D and brand building.
- The management integrity, capability, and history should
be good.
Buying the stocks at the right price “RP”
Buying a Company at the right price helps us maintain a margin
of safety on your investments. This helps us generate higher capital appreciation.
We use income, market and asset approach to evaluate the
valuations of the company.
The company should be Resilient, have a High Addressable
Business Opportunity, should have high capital e iciency, have a competitive moat, have management with integrity. While investing, we consider ourselves as a small owner of the business
Weighting Following parameters are considered while assigning weights to stocks in this smallcases
-Industry Exposure
-Company Exposure
-Theme
-Potential to generate wealth
-Economy and market trends
Rebalance This smallcase has a quarterly rebalance schedule. Once every quarter, the research team reviews this smallcase to add or drop stock/ETFs, if applicable
Ratios
Ratio smallcase Equity Mid & Small Cap
PE Ratio 14.19 26.74
PB Ratio 1.94 3.24
Sharpe Ratio 3.77 1.12
Dividend Yield (%) 1.19 1.70
Important Fields Inception Date Launch Date Marketcap Category August 8, 2018 March 20, 2020 Equity Mid & Small Cap
Review Frequency Last Reviewed Next Review On
Quarterly August 10, 2022 November 10, 2022
Market Cap Distribution
Large Cap Mid Cap Small Cap
15.18% 9.00% 75.82%
Live Data Comparison with Equity Mid & Small Cap
High Quality Right Price with Equity Mid & Small Cap
350
300
250
200
150
100
April July October 2021 April July October 2022 April July
The performance graphs & numbers are calculated using only the live data and includes rebalances. Past performance doesn't include cost or guarantee future returns.
Backtested Data Comparison with Equity Mid & Small Cap
High Quality Right Price with Equity Mid & Small Cap
120
110
100
90
October 2019 April July October 2020
The performance graphs & numbers are calculated using only the backtested data. Past performance doesn't include cost or guarantee future returns.
CAGR (compounded annual growth rate) is a useful measure of growth or
performance of a portfolio. Every year returns generated by a portfolio are different. Let's say if a portfolio is live for 3 years and returns generated by the portfolio are 5%, 15% & -7%, respectively in the irst, second and third year. Then we calculate CAGR as a return number that would give the same terminal investment value at the end of three years, as we get when the portfolio gains by 5% & 15% in the irst two years and drops by 7% in the third year. The CAGR in this case would be 3.94%. This means that you will always end up with the same investment value at the end of the third year, if your portfolio gains by 3.94% every year or 5%, 15% and -7%, respectively in the irst, second and third year. In simple words, it indicates the annual return generated by the smallcase from the date of launch. For smallcases live for less than 1 year, absolute returns in the applicable time period are shown. Only live data is considered for all calculations. Returns and CAGR numbers don’t include backtested data. P.S. - CAGR calculation methodology got updated from 25th Apr’22 on all smallcase Platforms. Please read this post to understand the changes in detail
Volatility Label
Changing stock prices on a daily basis results in luctuating investment value of
your portfolio. If the daily change in the investment value of a portfolio is too drastic, it means prices of stocks in the portfolio are changing very rapidly. Such portfolios have High Volatility. Every smallcase is categorized into one of the three volatility buckets - High Volatility, Medium Volatility and Low Volatility. This is done by comparing smallcase volatility vs broader market volatility. Investing in High Volatility smallcases means that change in your investment values can be very sudden and drastic. Following table represents the logic followed to categorize smallcases into various volatility buckets
Volatility Ratio (VR) Label
VR >= 1.3 High Volatility
0.8 <=VR< 1.3 Medium Volatility
VR < 0.8 Low Volatility
Volatility Ratio = Average annual rolling standard deviation of the smallcase
divided by the average annual rolling standard deviation of the Nifty 50 Index, since launch of the smallcase.
Calculation of Volatility if the smallcase is less than 1 year old
If the weight of Equities in the portfolio is less than 40%, the smallcase will be considered ‘Low Volatility’
If the weight of Equities in the portfolio is between 40% to 70%, the
smallcase will be considered ‘Medium Volatility’
If the weight of Equities in the portfolio is greater than 70%, then the weight of large-cap stocks within the equities portion is taken into consideration
If the weight of large-cap stocks is more than 70%, the smallcase is
considered as ‘Medium Volatility’
If the weight of large-cap stocks is less than 70%, the smallcase is
considered as ‘High Volatility’
For smallcases where manager has not prescribed any weights, equal weights are assumed for calculations.
Segment
Stocks/ETFs belonging to a smallcase are categorized under different segments.
Weightage of a segment is calculated as sum of weights of all stocks belonging to that segment. Suppose 4 stocks, with each having a weight of 10%, belong to the Food Products segment. Then the weight of the Food Product segment in the smallcase will be 40% (4*10)
For smallcases where manager has not prescribed any weights, equal weights are assumed for calculations.
Review
Rebalancing is the process of periodically reviewing and updating the
constituents of a smallcase. This is done to ensure that constituents in the smallcase continue to re lect the underlying theme or strategy
Market Cap Categorization of Stocks
All the stocks listed on NSE(National Stock Exchange) are arranged in decreasing order of Market Cap, so that the stock with the largest market cap gets 1st Rank. Stocks ranked equal to or below 100 are categorized as Large Cap. Stocks ranked below or equal to 250, but ranked above 100 are categorized as Mid Cap stocks. Stocks ranked above 250 are categorized as smallcap
Market Cap Categorization of smallcases
If the sum of weights of constituent large cap stocks is greater than 50%, then smallcase is categorized as Largecap
If the sum of weights of constituent mid cap stocks is greater than 50%, then smallcase is categorized as Midcap
If the sum of weights of constituent small cap stocks is greater than 50%, then smallcase is categorized as Smallcap
If the sum of weights of constituent large cap stocks is greater than 30%, sum of weights of mid cap stocks are greater than 30%, and sum of weights of large cap and mid cap stocks are greater than 80%, then smallcase is categorized as Large & Midcap
If the sum of weights of constituent small cap stocks is greater than 30%, sum of weights of mid cap stocks are greater than 30%, and sum of weights of small cap and mid cap stocks are greater than 80%, then smallcase is categorized as Mid & Smallcap
If none of the above conditions are met, then smallcase is categorized as
Multicap
Marketcap category of a smallcase might be different from the above
mentioned, if the creator/manager of the smallcase speci ically de ines a particular category
For smallcases where manager has not prescribed any weights, equal weights are assumed for calculations.
General Investment Disclosure
Charts and performance numbers on the platform do not include any backtested data. Please refer to the Returns Calculation Methodology to check how returns are calculated on the platform. Data used for calculation of historical returns and other information is provided by exchange approved third party data vendors and has neither been audited nor validated by the Company. For smallcases where weights are not provided by the creator, Equal weights are used to calculate all returns, numbers and ratios on the platform. Smallcase factsheets might include strategy backtest, if provided by the creator of the smallcase. This is included to help users analyze performance of the smallcase across different economic cycles and long time horizons. STPL has not veri ied the backtest performed by the manager. We make no representations or warranties (expressed or implied) to any recipient on the contents of the backtest. Any information included in the backtest, should never be construed as our representation or endorsement for the same. STPL is not involved in the generation of the backtest and are not responsible for the contents of the same, nor do we verify the accuracy of the same. We do not have control over the backtest performed by the creator/manager of the smallcase and neither do we play a determinative role in any calculation of the same. "Back-testing" is the application of a quantitative model to historical market data to generate hypothetical performance during a prior period. Use of back-tested data has inherent limitations including the following:
a. The results do not re lect the results of actual trading or the effect of material economic and market conditions on the decision-making process, but were achieved by means of retrospective application, which may have been designed with the bene it of hindsight.
b. Calculation of such back-tested performance data is based on assumptions
integral to the model which may or may not be testable and are therefore subject to losses.
c. Actual performance may differ signi icantly from back-tested performance.
Back-tested results are not adjusted to re lect the reinvestment of dividends and other income and, except where otherwise indicated, do not include the effect of back-tested transaction costs.
d. Back-tested returns do not represent actual returns and should not be
interpreted as an indication of such.
e. Please note that past performance does not guarantee future returns. All information present in this document and related material is to help investors in their decision making process and shall not be considered as a recommendation or solicitation of an investment or investment strategy. Investors are responsible for their investment decisions and are responsible to validate all the information used to make the investment decision. Investor should understand that his/her investment decision is based on personal investment needs and risk tolerance, and information available in this document and related material is one among many other things that should be considered while making an investment decision. Stock and ETF investments are subject to market risks, read all related documents carefully. Investors should consult their inancial advisors if in doubt about whether the product is suitable for them.
Please visit Green Portfolio for detailed disclosures, terms and conditions.
