universe

The Innovating Growth & Quality – All Cap Model selects stocks from the Nifty 750 index, ensuring diversified exposure across large-cap, mid-cap, and small-cap stocks.

📌 Why Nifty 750?

Comprehensive Market Coverage → Ensures access to fast-growing and financially strong companies.

Factor Diversification → Offers a broad selection for Growth & Quality factor screening.

Liquidity & Investability → Stocks in this universe maintain sufficient trading volumes, reducing execution risk.

This diversified universe allows the strategy to capture high-growth opportunities while ensuring exposure to high-quality, financially stable businesses.

research

This model applies a multi-factor selection framework, using Growth & Quality factors to identify top-performing stocks.

✔ Growth Factor: Stocks with consistent revenue & earnings growth, ensuring exposure to companies with strong future potential.

✔ Quality Factor: Stocks with high profitability, low leverage, and stable earnings, ensuring financial resilience.

📌 Quantitative Screening for Each Factor:

Growth: Revenue & EPS Growth (YoY & 3Y CAGR), ROE/ROCE growth, margin expansion.

Quality: High ROE & ROCE, strong free cash flow, low leverage.

By integrating two complementary factors, this model creates a balanced, high-growth, low-risk portfolio.

5️⃣ Rebalancing Process (Quarterly, Need-Based Adjustments)

✔ The portfolio is reviewed quarterly, ensuring alignment with factor signals and market conditions.

✔ Rebalancing is not forced but applied as needed, ensuring optimal factor exposure.

📌 Why Quarterly Rebalancing?

Growth & Quality factors require less frequent adjustments, supporting a low-churn strategy.

Minimizes turnover while maintaining exposure to evolving market trends.

Ensures long-term factor-driven investing without excessive trading.

stockScreening

✔ Stocks are ranked based on a composite Growth & Quality score.

✔ Factor scores determine which stocks qualify for selection, ensuring optimal exposure.

✔ No fixed stock count—the portfolio adjusts dynamically based on factor strength.

📌 Why a Structured Screening Process?

Ensures only high-quality growth stocks are included at any given time.

Adapts to changing market trends, preventing over-reliance on a single factor.

Allows flexibility in stock count, ensuring factor-driven decision-making.

weighting

✔ Factor-weighted allocation ensures high-scoring stocks receive larger exposure.

✔ Single-stock exposure is capped at 20% to prevent over-concentration.

📌 Why Factor-Weighted Instead of Equal-Weighted?

Prioritizes stocks with stronger factor alignment.

Balances risk by preventing overexposure to a single stock.

Reduces unnecessary turnover while ensuring optimal stock selection

rebalance

This smallcase has a quarterly rebalance schedule. Once every quarter, the research team reviews this smallcase and realign the weights with the selected asset allocation strategy for the next quarter