The MC Pro Alpha Folios section will house the various equity portfolios that are built and maintained by Moneycontrol Pro’s in-house, independent research team. These offer varied investment strategies that can be themed around occasions such as New Year/Diwali or themes such as Make in India.
Investing in equities is subject to market risks. Therefore, it’s not possible to predict or guarantee returns for Alpha Folios. However, our objective is to aim for consistent long-term performance by taking calculated risks and keeping downside protection in mind. The endeavour will be to outperform the returns generated by the broader benchmark index over the long term.
The ideal time horizon for an equity portfolio is to hold them for at least 36-60 months. However, investors should assess these horizons based on their own investing goals before making a decision.
The portfolio construction and active management are backed by in-depth, independent research and analysis of equity stocks done by the MC Pro Research team. The in-house research team covers over 270 companies across 25 sectors, using this expertise and knowledge for the development of various portfolios under Alpha Folios.
The individual portfolios under Alpha Folios are actively managed and hence there will be periodic changes to ensure that the portfolio reflect the original objective. New stocks may be added, existing ones could be replaced and/or cash levels can change depending on the market condition and stock valuation. The users/subscriber should regularly review the portfolio and may apply the update as and when implemented.
The Portfolios have a quarterly rebalance schedule. Once every quarter, the team reviews the selection universe as well as the existing constituents to add, drop stocks or tweak weights, if necessary. In addition to this, there may be some intermittent change, in case of any major material corporate or industry development related to a stock.
All publicly traded companies listed on the NSE/BSE are included in the universe
The portfolio is likely to be comprised of 12-20 companies from the small, mid and large cap universe, which have strong business fundamentals with healthy revenue and profit visibility and also trade at reasonable valuations.
The stock weights are decided based on multiple factors depending on market conditions, business fundamentals, stock valuation etc.
Stocks in the portfolios have different weights but investors cannot buy fraction of a stock even if the weight signals that, 122.5 shares of a company, for example. Therefore, the minimum investment is basically the sum required to buy at least 1 quantity of every stock as weighted in the portfolio. Therefore, even if say Rs 1 lakh were to lead to 122.5 shares of one company and 226.6 shares of another under the given weights, the minimum investment will be calculated for 122+226 shares or 328 shares into account.
While the minimum amount of investment required is mentioned, every individual’s desired investment allocation may be different. The calculator helps you to calculate how many quantities of each stock you need to buy for the complete portfolio for a given sum. You can use the plus minus sign to change the quantity of the portfolio you wish to purchase, in multiples of the Minimum Investment amount. Or enter a rupee value and the calculator will tell you how many units can be purchased, the respective stock quantities and the balance cash on hand. Since the portfolio amount and quantity move in increments of the minimum investment amount, when you enter a cash amount of say Rs 10 lakh and the minimum investment is Rs 3 lakh, the portfolio calculator will show you calculations for Rs 9 lakh and the remaining Rs 1 lakh will be cash in hand.
NAV is basically the value of the portfolio at each day’s closing prices which is indexed and the base value of the index is the value of the portfolio at the date of inception. It gives a fairly accurate picture of how the portfolio is performing vis a vis its benchmark. These values are rebased to 100 to enable a proper comparison.
These portfolios comprise of large, mid and small cap stocks with good trading volumes and history. Hence, these portfolios are highly liquid.
Yes, you can. If you have allocated some investments in any particular strategy, you can periodically allot investments in that strategy as these are dynamic portfolios and would always be available in the Alpha Folios section of MC Pro.
