- Wealth PMS (50L+)
Capitalmind PMS is a SEBI Regd. Portfolio Manager (INP000005847).
We invest in Equity and Debt portfolios to build long-term wealth for our clients.
We are India’s first, and only PMS offering clients the ability to allocate to a mix of fundamentally-picked and quantitative factor-based investment strategies based no your .
Capitalmind PMS has three active Equity Portfolios
Surge India is Capitalmind’s fundamentally-picked set of stocks expected to see significant tailwinds over the next five-to-seven years enabling significant earnings growth.
The portfolio is based on the significant shifts playing in India. We call them the महा trends (Maha trends).
Some of the areas we expect these trends will play out over the next few years are in Financialization, Logistics, Domestic consumption, Import substitution, Electrification of transport among others.
The portfolio also looks to identify special situation opportunities, for example, unlocking of value of higher return on capital businesses from parent companies, consolidation within a previously fragmented industry among others.
Check out our video on the core philosophy of the Surge India portfolio.
Capitalmind PMS Momentum is the first (and only PMS) quantitative investment strategy built on the momentum factor. It identifies stocks showing relatively stronger price-momentum than the broader market.
The momentum factor has been proven globally through extensive research by academics and practitioners. The seminal paper on momentum was published in 1993 by two professors at University of California, Prof. Jegadees Narasimhan and Prof. Sheridan Titman. Since then several other papers have corroborated the existence of Momentum as a factor capable of delivering excess returns when applied over the long term.
At Capitalmind, we have explored the momentum factor since 2017. We published our white paper on Momentum in Indian markets which confirmed that it works in India.
We built on the core idea of momentum and rigorously backtested various implementations of the strategy. The Capitalmind PMS Momentum portfolio has been live since 2019.
Historically equity markets trend up nearly 70% of the time. However, they go through deep corrections of 50% or more every now and then. While no equity investment strategy is immune to corrections, a strategy that can limit its downside to the extent of or slightly better than benchmark has a significant chance of outperforming over the long term.
The presence of inclusion criteria has worked, in real market conditions, to reduce exposure to equities in times of broad market corrections allowing for reduced exposure at the time markets are at their weakest.
With a live track record of over four and a half years, it is India’s first (and probably only) Momentum-based PMS strategy.
Designed to harness the Low Volatility factor, it identifies stocks showing relatively lower price volatility than the broader market. An ideal complement to a momentum / growth-oriented portfolio.
Based on research by Pim Van Vliet, titled ‘High Returns from Low Risk: A remarkable stock market paradox’, Low Volatility investing looks to harness the behavioural bias most investors display to buy stocks with lottery-like return profiles based on their high growth estimates. Conversely, investors tend to undervalue low-volatility stocks, as they are perceived to be boring or unexciting. This creates a mispricing opportunity for low-volatility investors.
Our backtests of Low Volatility investing in Indian markets found that the strategy gravitates toward highly liquid, large and mid-cap stocks that are not “buzzing” in financial media, at the time of portfolio inclusion.
Allocating to portfolios with different investment philosophies means matching your investment temperament to pick the ideal mix that maximises your chances of staying invested for long-term returns.
So, there is no one-size fits all approach. Instead our team runs you through a detailed questionnaire and an one-on-one conversation to arrive at the right mix for you taking into account your risk-tolerance and time horizon.
Talk to us to explore the right mix of Capitalmind portfolios for your long-term wealth goals.
Reach out to us on Twitter @Capitalmind_in, or if you’d like our team to get in touch, please fill out this form