Concentration, Customisation, and Active Investing
Today’s investment landscape offers multiple portfolio construction approaches, including model portfolios, systematic strategies, and actively managed strategies. While these approaches have enhanced structure and efficiency, they also allow room for thoughtful customisation based on individual investment objectives.
In this context, there is a renewed interest among investors such as ultra-high-net-worth individuals (UHNIs), family offices, and institutions in going back to basics: owning fewer businesses, engaging more deeply with each investment, and aligning portfolios more closely with each investor’s goals and risk profile.
This is where the value of a concentrated, customised, and actively managed portfolio comes into sharp focus.
Bespoke Portfolios: Why Customisation Matters
Many investors today explore different portfolio construction approaches, including model portfolios and more customised strategies. Model portfolios are typically designed at the fund-house level and implemented across multiple client accounts, offering consistency, scalability, and operational efficiency.
Alongside this, portfolio management can also incorporate varying degrees of customisation. This may include adjusting allocations based on factors such as existing investments, risk preferences, liquidity considerations, or specific portfolio objectives. The extent of customisation often depends on the investor’s requirements and the mandate structure.
A bespoke portfolio is tailored. It considers the investor’s overall financial landscape, their current investment exposure, and their specific return expectations. It is built with the understanding that investing is personal, and not every client needs to follow the same path.
Investing is inherently personal, and client portfolios often evolve based on individual objectives and circumstances. In practice, constructing portfolios at an individual level requires deeper involvement from the fund manager and research team—drawing on experience, judgement, and continuous learning over market cycles.
This approach allows portfolios to be shaped with greater context, reflecting the client’s investment framework alongside the manager’s expertise.
The Ongoing Relevance of Active Management
In stable, trend-driven markets, passive strategies may often do well. But in periods of volatility, structural change, or macro uncertainty, active managers can step in with agility. They can reassess companies after earnings calls, adjust weights based on new data, speak directly with the management, and take tactical calls.
The value of active management is magnified in concentrated and customised portfolios. When you own fewer businesses, you need to know them better. Active managers have the space to be selective, the discipline to stay the course, and the freedom to exit when the thesis breaks down.
That said, active management needs to be backed by a sound process and experienced people.
Putting It Together: Alchemy Select Stock
If you are an investor who finds these principles relevant, Alchemy Select Stock* is a PMS strategy worth understanding.
Formerly known as Alchemy High Growth Select Stock, this is a concentrated flexicap PMS strategy, with over 17 years of track record is designed for clients seeking focused exposure to high-quality businesses. It is led by Hiren Ved, Director and CIO at Alchemy Capital, who brings more than three decades of public market experience.
*Alchemy Select Stock is one of the Portfolio Management Services products managed by M/s Alchemy Capital Management Pvt Ltd, a SEBI registered Portfolio Manager.
What Makes It Different
1. Concentration with Clarity:
The portfolio generally consists of 8 to 14 high-conviction stocks. The aim is to let each stock contribute meaningfully to long-term performance. It avoids spreading too thin or over-diversifying.
2. Customisation at the Core:
Alchemy Select Stock allows for client-specific inputs. Each portfolio is built based on the client’s investment preferences and the manager's expertise. This makes the strategy especially relevant for UHNIs and family offices with complex holdings.
3. Performance and Philosophy Aligned:
Since its inception in December 2008, the strategy has been guided by a Growth at a Reasonable Price (GARP) philosophy. This approach focuses on identifying businesses with sustainable growth potential, strong fundamentals, and prudent capital allocation, while maintaining discipline on valuation. Portfolio construction under this framework emphasises quality, balance sheet strength, and long-term earnings visibility, with investments evaluated not just on growth prospects but also on the price paid for that growth. This alignment between philosophy and execution has remained central to the strategy across market cycles.
Since its inception, the strategy has delivered 19.4%# returns compared to its benchmark BSE 500 TRI return of 15.8%. INR 1 crore invested in December 2008 in Alchemy Select Stock could have grown to over INR 21 crores, versus 12 crores in BSE 500 TRI.
Above data as on January 31, 2026. #Performance related information provided herein is not verified by SEBI. Returns are net of fees, expenses & taxes (if applicable). Returns greater than 365 days: CAGR (Computed using TWRR method). Past performance is not indicative of future performance. The above performance figures are aggregate of all discretionary clients; the investor’s actual portfolio may differ. Please follow the given link for viewing Performance relative to other portfolio managers: https://www.apmiindia.org/apmi/welcomeiaperformance.htm?action=PMSmenu
Key Features
Alchemy Capital Management - Portfolio Management Services in India
Alchemy Select Stock is one such PMS strategy that is rooted in concentration, customisation, and active decision-making. As the broader PMS space grows more automated and model-driven, investors who prefer a more customised approach have fewer places to turn. That makes the role of focused, actively managed strategies more important than ever.
Click here to know more about our bespoke, customised PMS Strategy, Alchemy Select Stock. For more details, please write to us at contactus@alchemycapital.com
Disclaimer: This blog is for informational purposes only and should not be considered an offer or solicitation to buy or sell any securities or make any investments. We recommend readers take independent advice before making any investment decisions. Please refer to our Disclaimer and Disclosures for more details.
