opp icon Small is Beautiful

Capture the growth of undervalued companies

Made for risk-takers who enjoy investing in multi-bagger stocks with high disruptive growth, attractive returns & that outperform the market indices significantly.

introducing: Small is Beautiful

Small-cap companies are those with a market capitalization of less than $2 billion. They can be a lucrative investment opportunity because of their potential for high growth. They are also more likely to be innovative and disruptive, which can lead to significant gains for investors. Their potential for rapid growth is due to the fact that these companies are often in the early stages of their development.

investment strategy

The Small is Beautiful portfolio is a growth-at-a-reasonable-price (GARP) strategy that invests in small-cap companies with the potential to grow rapidly over the medium to long term. The portfolio focuses on companies with strong balance sheets, consistent earnings, and reasonable valuations. It also favours industries that are consolidating and avoids industries that are fragmenting.

Companies with potential to grow earnings faster than the market.

Companies trading at a discount to intrinsic value.

Strong balance sheets with healthy debt and cash flow.

Reasonable valuations compared to earnings and assets.

Favours industries consolidating with fewer players.

Avoids industries fragmenting with more players.

What you are investing in

Potent small-cap companies with slight exposure to large & mid-cap for stability.

Emerging startups in sectors like tech, finance, hospitality and capital goods.

Companies in wealth creation stage with growth potential & robust business models.

Mid-cap & large-cap companies to stabilize volatility in changing market conditions.

historical performance in global markets

It is observed that factor strategies have a tendency to show healthy outperformance against Nifty 50 during periods when more stocks are outperforming the benchmark index. Factor-based strategies can be a smart way to get exposure to equity markets without taking on too much risk.

Small is Beautiful: pros & cons

benefits

These companies have the potential to grow rapidly
They often face less competition than larger companies
Potential to deliver higher returns than larger companies over the long term

drawbacks

More volatile than larger companies
Often less liquid than larger stocks
Often less information is available about small-cap companies

annualized past returns

The Factor Focused portfolio encompasses a multi-factor strategy combining various attributes like value, growth, and low volatility to seek enhanced returns and diversification.

risk rating

Very High

who should invest in this

Ideal for investors with an aggressive risk profile who are looking for long-term capital growth. These investors are willing to take on more risk in exchange for the potential for higher returns. Their financial goals could include: growing their wealth over the long term, achieving financial independence, and creating a legacy for their children or grandchildren.<br><br>An investor looking to diversify their portfolio to give it the opportunity to generate additional alpha should consider investing in small-cap companies.