Alchemy High Growth - PMS

Investment Objective

The objective is to generate long term returns by investing in equities and equity related instruments, across all market capitalizations.

Why Alchemy High Growth?

• India is one of the fastest growing economies with an entrepreneurial pool to exploit opportunities.
• “Top-Down” and “Bottom-Up” approach to stock picking with focus on superior risk-reward.
• The High Growth strategy has outperformed its Benchmark 13 out of 21 calendar years since 2002
• Has created consistent wealth for investors. An initial investment of Rs.1 crore in May 2002 could have grown to over INR 48.3 crores as on September 30, 2023
• A typical portfolio consists maximum of 25 stocks.

Terms at a Glance

• CATEGORY - Equity Diversified
• TYPE - Open ended
• BENCHMARK - S&P BSE 500 - TRI
• INDICATIVE TENURE OR INVESTMENT HORIZON - 3 – 5 years
• FUND STYLE - Multi-cap growth
• LAUNCH DATE - 8th May, 2002
• MINIMUM INVESTMENT - INR 50 lakhs
• OTHER TERMS

  Philosophy & Strategy

  Alchemy Investment Philosophy is “Growth at Reasonable Price”. The philosophy behind growth investing is based on the fact that India is a high growth economy with a strong entrepreneurial culture. Our endeavour is to identify and invest in growth companies through a combination of top-down and bottoms up fundamental research to enable long term wealth creation.

  Description of types of Securities

  Equity

  Basis of selection of types of Securities as part of the Product/Investment Approach

  • Relevant Universe – We have identified a relevant universe of about 500 companies based on market capitalisation, qualitative governance filters, long term attractiveness and ROE profile of business amongst other parameters.
  • Investible Universe - From this relevant universe, an investible universe of companies is created based on assessment of past and future fundamental variables like revenue and EBIDTA growth, cashflow conversion efficiency and core ROE of the business amongst several other relevant variables which may be unique to a business. In addition to objective fundamental parameters and assessment of qualitative management capabilities, governance standards and competitive ability of the business is also carried out. A comprehensive valuation exercise is also carried out based on one and/or combination of valuation parameterslike P/E, P/B. EV/EBIDTA, DCF etc to arrive at an acceptable valuation range for investing in the security.
  • Portfolio Construction – The Portfolio Manager managing the strategy is then free to construct the Clients Portfolio from within the investible universe at his discretion.

  Allocation of Portfolio across types of Securities

  Upto 100% in equity (cash portion may be deployed in liquid funds/ debt Securities). The Portfolio allocation across market caps is also given below.

  Portfolio Construct: A typical Portfolio may generally consist maximum of 25 stocks across sectors.

  Basis for choice of benchmark

  S&P BSE 500 - TRI index serves as a comprehensive representation of the Indian economy, covering all 20 major sectors in the country. The index comprises of the top 500 companies listed on the Bombay Stock Exchange, with selection based on a combination of average float-adjusted market capitalization, average value traded, and average total market capitalization. Hence, we believe S&P BSE 500 -TRI is the appropriate benchmark which would reflect the realistic comparison with the Portfolio performance.

  Risk associated with Product/Investment Approach

  High Risk

  • General risk
    Please refer “Risk Factors” given in clause 6 of the Disclosure Document
  • Specific risk
    The Portfolio Manager doesn’t envisage any specific risks in addition to General Risk factors

  Other salient features, if any

  NA

Fund Manager – Alok Agarwal

Alok has over 20 years of experience in Finance and Markets, primarily in equity research and fund management. He worked with PGIM India AMC, where he managed their flagship fund and headed their Offshore Equity Desk. Alok has also worked with Deutsche Asset Management, KR Choksey Shares & Securities, E-nxt Financials Ltd and Pinnacle Academy. He holds a degree of M.Com and MS (Finance) & has also completed CA, CFA & CMT.