Alpha Blend - Quality Focus All Cap Model
GoalFi
A discretionary factor strategy selecting high-alpha and high-quality stocks from the Nifty 750.
2Y CAGR
39.48%
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Daily Change
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7Y CAGR
CAGR (Compounded Annual Growth Rate) indicates the average yearly return generated by a smallcase from the date of launch. Only live data is considered to calculate the CAGR. Thus, this smallcase has given returns on an average every year since Apr 4, 2016
High Volatility
Stock prices move up and down on a daily basis, resulting in fluctuating investment value. High volatility indicates high fluctuation is expected in the investment made in this smallcase
About the smallcase
The Alpha Blend – Quality Focus All Cap Model is a multi-cap, two-factor discretionary strategy designed to capture market outperformance (Alpha) while ensuring exposure to financially strong, high-quality companies (Quality).
The portfolio selects stocks with consistent excess returns while maintaining strong fundamentals, offering a balanced yet high-growth approach. With monthly review and need-based rebalancing, it adapts to market conditions while following a disciplined, factor-based strategy for long-term wealth creation.
📌 Factor-Based Selection
✔ Alpha Factor → Stocks with a history of outperformance (Jensen’s Alpha).
✔ Quality Factor → Focuses on high profitability (ROE, ROCE), low leverage, and stable earnings growth.
✔ Factor-Based Selection with Human Oversight → Uses a structured factor-driven approach, but rebalancing remains discretionary for adaptability.
✔ Risk Management through Defensive Allocation → In market stress, may allocate to LiquidBeES to manage risk.
📌 Investment Horizon & Risks
✅ Best for long-term investors (3+ years) seeking a high-alpha, quality-focused portfolio.
⚠ Market Risk – Alpha stocks may have higher short-term volatility.
⚠ Factor Variability – Alpha & Quality may underperform in certain market conditions.
⚠ Liquidity Risk – Some mid/small-cap stocks in Nifty 750 may have lower liquidity in volatile markets.
Methodology
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Methodology
universe
The stock selection universe is Nifty 750, which represents India’s top 750 listed companies across large, mid, and small-cap segments. This ensures broad market exposure, allowing the strategy to benefit from stable large caps, high-growth mid caps, and emerging small caps.
The model maintains a diversified multi-cap allocation while focusing on stocks with the highest Alpha & Quality scores.
research
A multi-factor framework is used to identify stocks with the best combination of Alpha and Quality. Alpha is derived from historical excess returns, Quality is assessed through financial health and earnings strength.
The portfolio is reviewed monthly, but rebalancing occurs on a need basis, ensuring factor alignment without unnecessary churn. During market stress, the model may increase allocation to LiquidBees to preserve capital.
stockScreening
✔ Stocks must meet a composite Alpha & Quality score, ensuring that only companies excelling in both factors qualify.
✔ Companies with excessive debt, earnings instability, or corporate governance concerns are excluded.
weighting
✔ Factor-weighted allocation, with a higher weight given to stocks scoring well on both Alpha & Quality factors.
✔ No single stock exceeds 20% allocation, ensuring diversification and risk control.
✔ The portfolio does not follow a market-cap-weighted approach, allowing for optimal factor exposure.
rebalance
This smallcase has a monthly rebalance schedule. Once every month, the research team reviews this smallcase and realign the weights with the selected asset allocation strategy for the next month
About the Manager
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