Alchemy Select Stock - (PMS)

Investment Objective

The objective is to generate long-term returns by investing in equities and equity related instruments, across all market capitalizations.

Philosophy

The philosophy behind growth investing is based on the assumption that India is a high growth economy with a strong entrepreneurial culture. Our endeavour is to identify and invest in growth companies through a combination of top‐down and bottoms up fundamental research to enable long term wealth creation. A typical Portfolio may generally consist of between 8‐14 stocks across sectors. We may construct such concentrated Portfolios as per the Clients need and understanding.

Strategy

Invest in companies across the market capitalization range, which have high growth potential and potential to deliver long‐term capital appreciation.

Why Alchemy Select Stock?

• Reason for investing is that India is one of the fastest growing economies and has sufficient entrepreneurial reserves to exploit the opportunities
• “Top-Down” and “Bottom-Up” approach to stock picking with focus on superior risk-reward.
• A usual portfolio comprises of 8-14 stocks across sectors; single stock exposure is capped at maximum 25 percent at cost.

Terms at a Glance

• CATEGORY - Equity Concentrated
• TYPE - Open ended
• BENCHMARK - BSE 500 TRI
• INDICATIVE TENURE OR INVESTMENT HORIZON - 3 – 5 years
• FUND STYLE - Multi-cap growth
• LAUNCH DATE - 19th Dec, 2008
• MINIMUM INVESTMENT - INR 5 crores
• OTHER TERMS
  Description of types of Securities

  Equity

  Basis of selection of types of Securities as part of the Product/Investment Approach

  • Relevant Universe - We have identified a relevant universe of about 500 companies based on market capitalisation (above 1000 crores preferably), qualitative governance filters, long term attractiveness and ROE profile of business amongst other parameters.
  • Investible Universe - From this relevant universe, an investible universe of companies is created based on assessment of past and future fundamental variables like revenue and EBIDTA growth, cashflow conversion efficiency and core ROE of the business amongst several other relevant variables which may be unique to a business. In addition to objective fundamental parameters and assessment of qualitative management capabilities, governance standards and competitive ability of the business is also carried out. A comprehensive valuation exercise is also carried out based on one and/or combination of valuation parameterslike P/E, P/B. EV/EBIDTA, DCF etc to arrive at an acceptable valuation range for investing in the security.
  • Portfolio Construction - The Portfolio manager managing the strategy is then free to construct the Clients Portfolio from within the investible universe at his discretion.

  Allocation of Portfolio across types of Securities

  Upto 100% in equity (cash portion may be deployed in liquid funds/ debt Securities).

  Basis for choice of benchmark

  As per APMI Circular APMI/ 2022-23/02 dated March 23, 2023.

  Risk associated with Product/Investment Approach

  High Risk

  • General risk
    Please refer “Risk Factors” given in clause 6 of the Disclosure Document
  • Specific risk
    The Portfolio Manager doesn’t envisage any specific risks in addition to General Risk factors

  Other salient features, if any

  NA

Fund Manager – Hiren Ved

Hiren Ved, an equity market veteran, serves as the Director and CIO at Alchemy Capital Management where he has been leading the firm’s Asset Management business. With over 30 years of experience in the Indian equities market, Hiren has developed a sustainable long-term investment philosophy based on fundamental research. He is known for his deep sector knowledge, bottom-up research skills and stock picking abilities. He holds a graduate degree in Accounting from Mumbai University and a post-graduation in Management & Cost Accounting from The Institute of Cost Accountants of India.

Performance

Data as of October 31, 2024 | *Inception Date: December 19, 2008

# Performance related information provided herein is not verified by SEBI | Returns are net of fees, expenses, and taxes (if applicable). | Returns less than 365 days: Absolute, greater than 365 days: CAGR ( Computed using TWRR method). | Past Performance is not indicative of future performance. | The above performance figures are aggregate of all discretionary clients; the investor's actual portfolio may differ. | Please refer the link for viewing Performance relative to other portfolio managers: https://www.apmiindia.org/apmi/welcomeiaperformance.htm?action=PMSmenu