The investment objective of the scheme is to generate long-term capital appreciation by employing a quanta mental approach of investing in equity and equity derivatives of specific sectors that are trending due to better earnings expectation. The allocation among sectors and stock selection will be decided by the in-house proprietary quantitative model and further augmented with fundamental analysis. There is no assurance or guarantee that the investment objective of the Scheme will be achieved.
The Scheme will be a diversified equity fund which will invest predominantly in equity and equity related securities. The focus will be to invest in the 3 to 6 trending sectors that are selected by the fund manager at all and any point of time of the fund based on the relative momentum of the sectors. Momentum investing is a strategy designed to gain from the persistence of prevailing trends in the market. This strategy technique is about investing in the sectors experiencing upward momentum due to growth in earnings expectation and selling them when indications suggest a weakening trend. The sectors will be selected by the proprietary quantamental strategy. However, the sectors so selected will be vetted fundamentally by the fund manager based on macro-economic parameters (like current account deficit, fiscal deficit, GDP growth, interest rates, inflation), investment indicators (like earnings momentum, investment in capex, new projects cleared, government policies such as PLI schemes announced, duty/taxation changes etc.), sentiment (purchasing manager index, sales of various consumer discretionary products, automobiles etc.), prices (crude, metals, gas), freight rates etc. to understand the rationale. These factors will also decide when rebalancing will be required. The final sector selection with sector weights, and decision to rebalance will lie with the fund manager. Once the sectors are selected, stocks from each sector will be decided by the Enhanced Quantamental Investment (EQI) strategy with the fund manager taking the final decision on portfolio construction. The fund manager shall invest "80 to 100%" of scheme assets into Equity and Equity-related Instruments following the multi sector rotation theme. And the fund manager, may, at their discretion may invest "0 to 20%" of the scheme assets into Equity and Equity Related Instruments of companies other than the multi sector rotation theme based on qualitative and quantitative assessment of the investment opportunity.
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