The objective of Small Cap Core Portfolio is to research and recommend companies wherein the clients can enjoy the benefit of potential growth offered by small-cap stocks which are likely to become tomorrow’s mid-cap stocks.
These companies are either at their nascent or developing stage and are under-researched and comparatively unexplored. Although relatively volatile in the short run, small-cap companies have immense potential to deliver higher growth in the long-term horizon.
Why Small Cap Core Portfolio?
Small-cap companies with healthy corporate earnings, robust outlook and strong management are considered to be attractive stocks as they are more likely to grow exponentially. However, it is equally challenging to choose the right combination of Small caps at just the right valuations. Choosing Quality small caps involves an in-depth study of valuations while making sure that the small-cap companies have retained their fundamental strength despite the volatility in the markets at any given point.
StockAxis uses its incisive fundamental research to spot strong small-cap stocks of companies in growing sectors run by honest management and with sound business models.
Small Cap Core Strategy - Key Traits
Bottom up approach, focus towards business with scalability, and significant opportunity for re-rating of stocks with an aim to deliver superior returns in the long term.
Tax efficiency. Most capital gains will be long-term.
Most capital gains will be long-term.
Business model does not scale up, liquidity risk and high volatility in Returns Regular Rebalancing. Stocks with deteriorating factors will be advised to be sold and / or replaced with stronger positions.
10 – 15 positions in the portfolio.
Recommended Investment Tenure
3 years to get optimum return
Value added services
- Access to Research Analysts
- Recommendations via SMS, email & mobile app notifications at real-time
- Research Reports & Regular Updates
- A Dedicated Relationship Manager
- Access to the Recommended Portfolio in Web Login and Mobile App