The objective of the IRSS (India Rising SME Stars) Strategy by Hem Securities is to deliver superior long-term capital appreciation by identifying high-growth SME and small-cap companies in India. IRSS strategy aims to generate alpha by investing in fundamentally strong businesses with sustainable growth, robust financial metrics, and sectoral leadership. With a minimum investment of ₹50 lakhs, the strategy offers investors a professionally managed opportunity to participate in India’s next-gen business growth stories.

Hem Securities’ IRSS Strategy is a high-conviction, long-only PMS strategy that invests in listed SME and micro/small cap stocks through the cash market (no F&O exposure). The portfolio comprises a concentrated set of high-potential businesses with strong fundamentals, scalable models, and resilient balance sheets. The investment team focuses on companies with healthy ROE/ROCE ratios and attractive valuations across outperforming sectors.

Key tenets of the strategy include:

• Focus on sustainability and business scalability
• Investing in high-growth companies with robust fundamentals
• Avoidance of index hugging through unique stock selection

The IRSS investment framework revolves around risk-managed alpha generation while maintaining sectoral discipline. The portfolio is actively managed, with sector allocations based on fundamental research and real-time sector tracking. Each stock has a maximum allocation cap of 12–14% to maintain diversification and reduce unsystematic risk.

Framework highlights:

• Higher allocation to outperforming sectors
• Deep-dive analysis across 20+ sectors
• Emphasis on finding unique, undervalued multi-bagger opportunities
• Sectoral diversification to manage downside risk