MULTICAP PORTFOLIO

Multicap Portfolio aims to deliver capital appreciation over the long term from a diversified portfolio that predominantly invests in equity and equity related instruments across various market capitalisation. The strategy follows a rule based stock selection process from the Nifty 500 universe with focus on companies demonstrating superior momentum. Stocks with high volatility and low quality characteristics are filtered out and an additional quality filter is applied to avoid loss making companies with substantial debt. The portfolio typically consists of about 25 to 35 stocks selected through a momentum factor portfolio framework. Allocation is flexible across market capitalisation with exposure across large cap, mid cap and small cap companies. As per portfolio holdings, exposure broadly includes large cap about 38.90 percent, mid cap about 30.15 percent and small cap about 30.95 percent, creating a diversified multicap structure. The portfolio is benchmark agnostic and sector agnostic with stock selection driven by rule based quantitative filters rather than sector allocation views. Portfolio construction emphasises disciplined investing with elimination of low quality stocks and periodic portfolio review. Rebalancing is undertaken on a quarterly basis which may result in relatively high churn to maintain alignment with the momentum based selection framework. Sector agnostic and large cap, mid cap and small cap combination.