Emkay Gems

Fund Snapshot

Investment Philosophy

The stock analysis modules at EIML are quite different from conventional investing techniques. The investment portfolios are based on two distinct theories:– Classical Alpha and Smart Alpha.

1. Classical Alpha

The objective is to produce alpha by pure bottom-up stock picking, further distinguished and reinforced by E-Qual, the unique governance dedicated stock-picking module. E-Qual is an independent governance tool that helps us analyse and compare listed businesses on a range of qualitative and quantitative governance criteria, including management honesty and competence, wealth distribution, investor communication, and liquidity.

1. Smart Alpha

The Smart Alpha approach is designed to reduce selection and allocation biases that affect fund managers. We concentrate on constructing an equal-weighted portfolio using a rigorous investment method based on management expertise, leadership, market capitalisation, earnings growth, and valuation levels. The unique stock-picking and evaluation procedure, complemented by a practical risk management module, helps us eliminate “Selection Bias” and “Allocation Bias systematically” equally.

Investment Strategy

The primary goal of the Emkay GEMS portfolio is for investors to achieve medium to long-term capital appreciation by investing in 20 equi-weighted mid-cap stocks. Emkay Gems marketing department is very efficient in reaching out to their existing client base and marketing new products.

Emkay Gems have been quite successful when it comes to investment companies because they offer financial advice.

Unique Feature

Emkay GEMS is focused on sectors and organizations that will profit due to the predicted economic growth.

• Value Migration

The framework is intended to spot industries where value migration occurs and assist investors in identifying early winners.

• Domestic Consumption

Companies that stand to benefit from GDP growth and the resulting increase in domestic consumption-driven sectors.

• Efficiency Outliers

Excess assets, value-added goods, return generated on the capital, and so forth are utilised more efficiently than other firms by companies that are better than their peers in these respects.

The fund’s goal is to produce risk-adjusted returns and avoid excessive diversification. It has low volatility, high liquidity, and a low portfolio turnover rate. The quality filters weed out poor investments with higher risks to reduce portfolio risk.

The fund managers use the innovative alpha method to create an equally weighted portfolio, eliminating ‘allocation bias.’

We utilize the EQual Risk module to verify that only highly governed companies join the portfolio since this is a mid-cap fund.