Name: PrimeInvestor Finance Squared
Brand: smallcase
SKU: PRIMNM_0001
Price: 88000 INR

PrimeInvestor is an unbiased, independent, personal finance research platform. We empower you with simple, meaningful and actionable investment insights, recommendations, and solutions so you can confidently build wealth for any need. We discover the best investment products for you across stocks, ETFs, mutual funds, bonds, gilts, fixed deposits, NPS, and insurance. We also provide a range of research tools across these product classes to enable you to do your own research.

Nifty 500 Index

PrimeInvestor Finance Squared

Bhavana Acharya

Picks the high-growth stocks in every segment of the finance sector. Recommended min amt Rs 1.2 lakh

The universe comprises NSE-listed financial stocks from banks, small finance banks, NBFCs, micro finance institutions, insurance companies, AMCs, market infrastructure institutions and their enablers with market capitalization above Rs. 1,000 crore. This universe is split into two baskets – the lending basket and the non-lending basket.

Stocks are filtered on detailed bottom-up analysis to identify the ones that fit our investment thesis. We look at quantitative financial parameters and a wide range of qualitative aspects to build the watchlist and portfolio. Qualitative aspects include composition of loan book, domain expertise, size, yield, nature and characteristics of the credit cycle, risk in the different lending segments, and so on. Outside the lenders, companies operating in the broader financial services segment that tap into emerging trends form part of the shortlist. These include rating agencies, AMCs, depositories, exchanges, insurance players and other enablers. Here, we look at the growth as well as cyclicality.&nbsp;

Key parameters are used to screen stocks in the universe to assess their prospects to make it to the shortlist and from there into the portfolio. These include, but are not limited to:<ul><li>Net earnings growth/ revenue growth</li><li>Yield on advances/NIM/ profitability</li><li>Return on Assets</li><li>Return on Equity</li><li>Asset Quality</li><li>Capital Adequacy Ratio</li><li>Free cash flow (where applicable)</li><li>Return on Capital employed (where applicable)</li></ul>These parameters help assess fundamental strength. Qualitative assessments on growth from here, profitability and asset quality trends are evaluated for each of the stocks in the final watchlist.

Growth, business fundamentals and financial trackrecord are the key factors considered while fixing the individual stock allocation in the portfolio.&nbsp;&nbsp;

This smallcase has a quarterly rebalance schedule. Once every quarter, the research team reviews this smallcase to add or drop stock/ETFs, if applicable

The final screened stocks are then weighted according to the selected asset allocation algorithm

PrimeInvestor Finance Squared

PrimeInvestor Finance Squared

Overview

Stocks & ETFs