ACE Equity Portfolio

ACE Equity Portfolio focuses on stock picking in growth themes benefiting from structural changes in the Indian economy such as digitization, formalisation, India as manufacturing hub, infrastructure and housing capex, rising per capita income and energy transition. The strategy identifies value to growth stocks where earnings are transitioning, valuations are lower, negativity is bottoming out and companies can benefit from government reforms, macro changes or sector tailwinds. The investment approach uses a combination of fundamental screening and money flow screening beginning with a broad universe of NSE 500 companies and narrowing through filtration based on EPS growth, manageable debt, corporate governance, promoter track record, sector tailwinds, high market share and reasonable valuations along with strong money flow indicators and better risk reward. Portfolio construction results in a basket of approximately 25 to 30 stocks with optimal diversification to balance concentration risk and alpha potential while emphasizing industry leaders with high earnings growth and high return on equity. The portfolio allocates across sectors such as financials, consumer discretionary, industrials, materials, energy, healthcare, information technology and communication services. Market cap allocation shows a dominant exposure to large cap companies with selective allocation to mid cap and small cap stocks. Sector agnostic and combination of large cap, mid cap and small cap.