MC Pro launches actively-managed, customisable portfolios under Alpha Folios

Alpha Folios will empower Pro subscribers to access high-quality investment advice at no extra cost at their convenience and also track how portfolios are doing over a longer period of time

MC Pro portfolios are popular among subscribers, having consistently outperformed benchmarks. Earlier being published in the form of articles, these will be now housed in a separate section called Alpha Folios that will be managed by the MC Pro research team. Click here to see what Alpha Folios has to offer.

While the core stock selection principles remain the same for preparing the portfolio, what changes is how they are made available. Subscribers can check stocks under each portfolio at their convenience throughout its life, and not just when they are launched. These portfolios will be actively-managed, which means our research analysts will review the strategy and stocks to see that the fitment continues. The analysts can add or drop stocks, change weights or even move some funds into cash if the need is felt, and Alpha Folios will track changes for subscribers’ convenience and even issue notifications.

Subscribers can also see how each strategy is doing and measure performance of the portfolio versus the benchmark. There is a novel feature that allows to calculate quantities of each stock of the portfolio on live prices according to anyone’s overall allocation to the strategy. Thus, if a portfolio’s minimum investment is Rs 90,000 (to buy one unit of the portfolio) but if you want to invest Rs 4 lakh, then the utility will calculate the number of shares of each stock to achieve the portfolio’s distribution. In this case, Rs 40,000 will not be allocated as it is short of the minimum investment required.

In short, Alpha Folios will empower Pro subscribers to access high-quality investment advice at no extra cost at their convenience and also track how portfolios are doing over a longer period of time. Click here to view the Alpha Folios section.

While Alpha Folios has been taken live, MC Pro has also launched on it a brand new portfolio the Affluent India Portfolio. The MC Pro research team launches both event-based portfolios (such as New Year, Diwali, Budget) and thematic portfolios such as Make in India and the latest one, Affluent India. These thematic portfolios seek to ride multi-year winning themes. As a part of that exercise, MC Pro’s Affluent India Portfolio is a handpicked basket of stocks designed to ride a multi-year theme of Indian consumers’ growing preference for premium products that is causing an uptick in growth in these products and companies are rushing to reorient their product lines to cater to this rich source of demand.

Well-to-do consumers are increasingly buying premium products, resulting in this segment outperforming market growth by a significant margin. The MC Pro Research team believes that the premium segment will continue to grow as the nation transitions towards becoming a middle-income country.

The portfolio is built to capitalize on the premiumization theme, has 13 stocks to begin with, of varying weights and 14 percent cash that should get deployed on addition of new ideas and/or tweaking weights of existing stocks. The stocks in the portfolio come from varied sectors ranging from travel tourism, consumer ware, jewellery, luxury cars, entertainment to wealth management.

This thematic portfolio will be managed dynamically – the managers of this strategy would keep a close eye on the portfolio and review it periodically for adding/deleting stocks or tweaking weights for the portfolio to remain relevant with changing times and market conditions.

While the endeavour will be to outperform the benchmark, the strategy would play out gradually over time. The portfolio is meant for investors with a slightly longer time horizon of three to four years for the theme to play out fully.

The recent market correction, although unnerving for a section of investors after a stupendous rally, is doing a good job of tackling the perceived valuation froth that had built up. The correction is, therefore, offering an opportunity to buy quality stocks in the Affluent India Portfolio at a more reasonable valuation.

If you are a Pro subscriber, go here to add this portfolio in your investment journey. Start using the Alpha Folios to create your own portfolios with ease and visit regularly to see what’s new. If you are not yet a Pro subscriber, no better time than this to join the growing community of over one million subscribers. Click here to join MC Pro (https://www.moneycontrol.com/promos/pro.php)