Nippon India Equity Opportunities AIF Scheme β 11
Fund Snapshot
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Investment Philosophy: βMust Fiveβ Quality Framework
Business Potential
- Growth Opportunity (Scale)
- Sustainable Competitive Advantage
Earnings Track Record
- Consistent Performance across Business Cycle
- Revenues, EBITDA, Profit Growth
- Margin Profile
- Return of Equity (ROE)
- Return on Assets (ROA)
Corporate Governance
- Treatment of Minority Shareholders
- Promoters’ Track Record
- Accounting Red flags
- Share Pledge
Environment & Social Factors
- Environmental Factors:
- Water Management
- Emission and Affluent
- Policy Social Factors:
- Employee Benefits
- Health & Safety
- Diversity & Inclusion
Capital Allocation
- Unrelated Diversification
- Leverage
- Equity Dilution
Quantitative Framework
Strategy – Bottom-up Approach
- High focus on fundamental analysis and research
- Improvement in earnings as the Indian landscape provides ample investment opportunities
- Identify stocks most attractively valued with respect to business model, financial metrics, and quality of management
Risk-Reward
- Adequate diversification across Nifty 500 companies, across sectors, and across market cap
- Active approach towards stock selection, with no single stock above 10% and no sector over 30%
Research-driven, bottom-up stock selection with sectoral diversification ensures prudent risk-managed investing.
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