universe

The Innovating Growth & Value – All Cap Model selects stocks from the Nifty 500 index, ensuring diversified exposure across large-cap, mid-cap, and small-cap stocks.

📌 Why Nifty 500?

1. Comprehensive Market Coverage → Covers ~96% of India’s listed market capitalization, offering access to growth-oriented and fundamentally strong companies.
2. Factor Diversification → Broad universe for effective Growth & Value factor screening.
3. Liquidity & Investability → Constituents maintain healthy trading volumes, reducing execution risk.
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This diversified universe enables the strategy to capture high-growth opportunities while maintaining valuation discipline and exposure to fundamentally robust businesses.

research

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

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

✔ Value Factor: Stocks trading at attractive valuations relative to fundamentals, providing margin of safety and upside potential.

📌 Quantitative Screening for Each Factor:

• Growth: Revenue & EPS Growth (YoY & 3Y CAGR), ROE/ROCE growth, margin expansion.
• Value: Low P/E & P/B ratios, reasonable EV/EBITDA, strong dividend yield, fair PEG ratio.
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By integrating two complementary factors, this model builds a balanced portfolio that seeks high growth while maintaining valuation discipline.

Rebalancing Process (Quarterly, Need-Based Adjustments)

✔ Reviewed quarterly to align with factor signals and market conditions.

✔ Rebalancing applied only when needed, optimizing factor exposure.

📌 Why Quarterly Rebalancing?

• Growth & Value factors require less frequent adjustments, supporting a low-churn strategy.
• Minimizes turnover while maintaining exposure to evolving opportunities.
• Supports 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 Growth & Value 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 the strongest Growth & Value factor alignment.
• Balances risk by preventing overexposure to a single name.
• Reduces unnecessary turnover while maintaining optimal factor exposure.

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