Safe Haven smallcase

This smallcase, created with Low-beta stocks that are rated ‘BUY’ in order to protect the investors against market volatility has given the past 1 year return of 26.95% and a CAGR of 26.87%*

Why should you invest in this smallcase?

Beta is a measure of volatility. A beta of less than 1 indicates that the stock is less volatile than the market. Good quality, low beta stocks ensure that the portfolio is not very sensitive to market selloffs.

• This smallcase has stocks that have beta of less than 0.65 and are rated ‘BUY’ by more than 65% of the research analyst covering them

• Also, these stocks have witnessed an increase in the number of shares held by financial institutions like mutual funds in last 3 months

Click here and use this smallcase to protect your portfolio against market quality.

How was this smallcase built?

Model based smallcases like Safe Haven are based on different fundamental and technical criteria like EPS, valuation ratios, price momentum etc. The generic process followed to build these smallcases is

1.Defining the universe

All publicly traded companies on the National Stock Exchange of India, covering 90% market capitalization, are included in the universe

2.Stock screening

• Proprietary liquidity filters are applied to remove ill-liquid stocks from the universe

• A special check is applied to remove stocks, where a significant part of the promoter holdings are pledged, to define the investable universe investable

• The model criteria identified in the previous step is applied on the investable universe to select qualifying stocks

• Final stocks are selected on the basis of combined rank calculated using various parameters like valuations, market share growth, earnings growth, profitability, earnings quality, intrinsic value & institutional holdings

3.Research

The smallcase Research team studies research papers and documented investment philosophies and strategies. Ideas and strategies are then adapted for the Indian markets, with which a criteria for stock screening is finalized

4.Weighting

This list of selected stocks is equal weighted

5.Historical back-testing

All model based smallcases are checked for historical outperformance to ensure that only consistently outperforming models are selected