The Emkay GEMS (Growth Enterprise Midcap Strategy) portfolio aims to deliver medium- to long-term capital appreciation by investing in 20 equi-weighted mid-cap stocks. The fund adopts a buy-and-hold approach, focusing on companies with:

• Strong economic moats
• Dominant positions in their sectors
• Long-term potential for wealth creation

The GEMS Strategy is grounded in delivering risk-adjusted returns with a low-volatility, low-turnover approach. It avoids over-diversification and filters out low-quality, high-risk names to minimize portfolio risk.

Key principles include:

• Equi-weighted holdings to remove allocation bias
• High liquidity and quality filters
• Focus on governance, earnings strength, and valuation metrics

GEMS Strategy follows a structured framework using four key filters:

1. Defined Market Cap Filter
   Focus on NIFTY Midcap 150 universe to ensure targeted midcap exposure.
2. Earnings Growth Filter
   • High RoCE / RoE > CoE
   • Debt-to-equity ratio < 1
   • Strong past performance and future growth visibility
3. Valuation Framework
   • PEG ratio
   • Market Cap vs Opportunity Size
4. Leadership Filter
   • Strong sector leadership
   • Trusted management credentials

The process narrows 5,000+ listed companies to a high-conviction basket of 20 midcap stocks with robust fundamentals.

GEMS taps into high-growth midcap enterprises from the following transformational themes:

• Value Migration: Industries experiencing structural shifts with early-mover advantage
• Domestic Consumption: Sectors benefitting from rising GDP and consumer demand
• Efficiency Outliers: Companies with superior asset utilization and return metrics