PhillipCapital PMS

The objective of Phillip Ethical India Strategy is to invest in socially responsible and Shariah-compliant companies while avoiding sectors and businesses that engage in activities deemed unethical or non-compliant with Islamic finance principles. The goal is to generate medium to long-term alpha by deploying a diversified multicap portfolio of 18–25 high-conviction stocks. The strategy uses both top-down and bottom-up stock-picking approaches, with flexibility to take cash calls depending on market volatility.

PhillipCapital follows a no-churning, no-speculation approach and adheres strictly to research-based, long-term investment discipline. The strategy avoids companies with:

• High debt levels

• Dubious corporate governance

• Small market capitalization (below ₹500 Cr)

Phillip capital maintain a well-defined ‘Clear No Go Areas’ list, avoiding sectors such as alcohol, gambling, pork, tobacco, media, gold/silver trading, and conventional BFSI as per Shariah guidelines. Their philosophy is built on staying focused, minimizing over-diversification, and sticking with quality companies for the long run.

Phillip Ethical India Strategy follows a 3Q Investment Framework:

1. Invest – in quality companies with strong earnings visibility and valuations
2. Nurture – continuous on-ground checks, management interactions, and peer comparisons
3. Divest – when valuations peak or fundamentals change

The strategy emphasizes staggered investments, avoids a one-size-fits-all portfolio model, and offers personal hand-holding with strict discipline. Sector focus includes high-growth and ethical opportunities across:

• Healthcare

• Engineering

• Technology

• Consumption

• China+1 trend

• Special situations