Prabhudas Lilladher’s StrategyShop is a virtual shopping zone for investors and traders looking for smart investment strategies! A wide range of Registered Investment Advisors and Research Analysts at your beck and call – and with minimum amounts as low as Rs 10,000 for some strategies. What more could you ask for? And all you need to do across these strategies is select one, make a small payment, login with your online trading username password and press Invest As easy as that!
Introducing Wright Research
Wright Research is a quantamental (quantitate and fundamental research combined into one) research firm, founded in 2019 by IIT Kanpur graduate Sonam Srivastava, Wright Research uses data and algorithms to identify a diverse set of factors in the equity market and tactically invests in them to generate consistent alpha.
PL and Wright Research
PL Strategyshop now features two of Wright Research’s portfolios – Smallcap and Momentum- at https://wealthdesk.plindia.com
Both these portfolios are available for an investment value of Rs 30,000 and both are charged an annual fee of 1% on investment value. The process of investing involves spending about 5 minutes at https://wealthdesk.plindia.com to finish your risk profiling and accepting the agreement and you can invest rightaway.
About The SmallCap Strategy
This is a high risk equity strategy to participate in high quality small cap stocks. This strategy is specifically build to take advantage of smallcap rallies via quality stocks.
- This is a multi-stock portfolio of 20-25 stocks selected from the smallcap universe (between the 250th and 750th stock in terms of market cap)
- The underlying equity themes consist of selecting high quality smallcaps with high momentum and low volatility.
- The historical performance of this portfolio has beaten the benchmarks by a wide margin.
- The rebalance of the portfolio is usually done every month to keep turnover low.
The chart below shows the current value of Rs 100 invested in the portfolio on April 1, 2016 – a stupendous 4x return!
Stock Selection
The criteria for selecting stocks in this portfolio are:
- Intrinsic Value (economic value added per share and relative value)
- Quality(Scores like Piotroski score and ratios like Return on Capital Invested, Solvency ratio etc)
- Earnings Growth — (earnings growth, revenue growth & metrics like G score)
- Momentum— (long term & short term momentum, breakouts )
- Low Volatility — (long term & short term volatility )
More performance data is available at https://wealthdesk.plindia.com/wealthbaskets/Smallcaps
About the Momentum Strategy
Momentum is one the most popular factors influencing equity market returns. There are certain nuanced technical indicators like Bollinger Band breakouts, Relative Strength Index, etc that can be used to gauge momentum.
The Momentum strategy is a high risk equity strategy to participate in high momentum stocks with a check for volatility. This strategy is specifically build to take advantage of bullish trends.
- This is a multi stock portfolio of 20-25 stocks selected from the top 300 universe
- The underlying equity themes consist of selecting high quality stocks with high momentum and low volatility.
- The historical performance of this portfolio has beaten the benchmarks by a wide margin.
- The rebalance of the portfolio is usually done every month to keep turnover low.
The chart below shows the strategy returns since April 2014 – an 8x return since April 2014.
The portfolios size positions such that no single stock gets more than 10% allocation with limits on sector and industry allocations as well to promote diversification. The position sizing is done using the mean variance optimisation methodology.
More performance information is available at https://wealthdesk.plindia.com/wealthbaskets/Momentum
Investing in these Baskets
If you are a Prabhudas Lilladher client, just visit https://wealthdesk.plindia.com/ and log in with your online trading credentials. Then select the appropriate strategy , fill in the required information and invest once the payment is done! The entire process is hardly 10 minutes from the time you click the above link! Remember however that you should choose the portfolio thats in line with your risk appetite – so see the performance, assess the volatility and then buy to the extent your risk profile permits.
You may browse through our other strategies at https://www.plindia.com/strategyshop/
You may want to look at our webinar recoding available at https://www.youtube.com/watch?v=jRHBRCRx3UQ&t=9s to hear Sonam talk about the portfolios and the process of investing.