Top performing smallcases of 2021

Looking back at 2021, the Indian financial markets saw a lot of ups and downs. Mr Market was on a streak with all-time highs and record-breaking points. Unfortunately, this streak was broken toward the end of the year by a dip we saw as oil prices increased during the first week of October. Investors faced a cold November but saw good performance during December with logging gains of 24% for the year. Through all these highs and lows, some smallcases outperformed the others. Let’s take a closer look.

Smallcases are model portfolios of stocks/ETFs based on a theme, idea or strategy. It is a modern investment instrument for investors to build long term diversified portfolios. smallcases are created by SEBI registered professionals. smallcases have brought a lot of flavour to investing as they are created across various strategies, market segments, sectors and risk profiles.

Here is a list of the Top Performing smallcases of 2021, what category they belong to, what strategy they follow and who they are managed by.

1. Mid and Small Cap Focused Portfolio; 136.63%

• ● Managed by: Niveshaay
• ● Strategy:
•            ● This portfolio consists of a basket of 15-20 small and mid-cap focused stocks with great business potential.
•            ● In this portfolio, we have covered stocks that are available cheaply and have huge earning potential upside.
•            ● Invests in companies that have the potential to grow at a decent pace, visibility of sustainable profit and also have clarity on the leverage.
• ● Small-Cap

2. Digital Transformation; 116.51% 

• ● Managed by: Omniscience Capital
• ● Strategy:
•            ● This smallcase comprises of Indian Technology companies enabling global enterprises to accomplish their digital transformation (DX)
•            ● This smallcase provides global diversification to US and European economies and Dollar based revenue providing a hedge against Rupee depreciation
•            ● This smallcase leverages the fact that Indian tech companies have access to the largest pool of digital talent and the capability to hire and train them for delivering DX projects across the globe and across industries
• ● Large Cap

3. Listed Venture Capital; 113.17% 

• ● Managed by: Lotusdew
• ● Strategy:
•            ● Small Cap
•            ● Venture Capital style investments into small listed companies with quality governance board & quality earnings poised to grow
•            ● Fundamental ideas are used like variability of margins, earnings stability, one off items in reported earnings as few of the methods to further shortlist.
•            ● Portfolio construction techniques are used to make the small case representative of the broad economy.

4. Capitalmind Momentum; 100.66% 

• ● Managed by: Capitalmind
• ● Strategy:
•            ● Mid and Small-cap
•            ● Up to 25 stocks selected based on sharpe ratios and liquidity ,with weekly rebalancing
•            ● This portfolio aims to capture the Momentum factor with back tested data of over 4 years

5. Wright Momentum; 93.64% 

• ● Managed by: Wright Research
• ● Strategy:
•            ● Mid Cap
•            ● This is a high risk equity strategy to participate in high momentum stocks with a check for volatility. This strategy is specifically built to take advantage of the bull market.
•            ● This is a multi stock portfolio of 20-25 stocks selected from the top 300 universe
•            ● The underlying equity themes consist of selecting high quality stocks with high momentum and low volatility.

Here’s wishing everyone a Happy New Year!

For More Details on Smallcase in Moneycontrol Click Here.