Low Beta PMS

Key Attributes

Inception Date: 31 December 2014

Number of Stocks: 29

Fund Manager Name: Mitul Patel

Fund Manager Experience: Total Exp – 14+ Years, With IIFL – 5 Years as Head of Research

Investment Objective

The objective of the strategy is to generate long term capital appreciation for investors from a portfolio of equity & equity related securities. The investment strategy is to invest in companies and in sectors that are available at a significant discount to their intrinsic value and provide earnings visibility.

Portfolio Strategy

  1. The portfolio is comprised of 15-20 high-quality companies which are business leaders, have a strong management, low leverage and which offer a large margin of safety
  2. Investments pertain to largely in 2 – 4 high conviction sectors
  3. Identifying companies within the high conviction sectors that have attractive business models, strong balance sheets, good corporate governance practices and run by excellent management teams
  4. Significant Alpha Generation with Low Risk (Past portfolios have a beta of 0.7 – 0.8 which is lower than most mutual funds)
  5. Aims to target superior outperforming stocks over the benchmark through concentrated sector or stock positions where stocks are mostly held for the long term, typically almost always over 12 months

Investment Philosophy

  1. IIFL Multi Cap PMS follows an interesting and insightful mechanism to dissect markets on exactly this mathematics i.e. corporate earnings. This is called SCDV framework, where by the whole of the listed market is divided on the basis of earnings profile of the companies, in following four quadrants.
    • Seculars – PAT and ROE more than 15%
    • Cyclicals – PAT more than 15%, ROE less than 15%
    • Defensives – PAT less than 15%, ROE more than 15%
    • Value Traps – Both PAT and ROE less than 15%


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