Portfolio management Services are ideal for aggressive investors with a greater appetite for risk and reward. Funds are usually deployed into a focused portfolio of 20 to 25 stocks which are diversified across various sectors. At prosperity wealth management we offer two portfolio management schemes, Prosperity Deep Value Fund & Prosperity Large Cap Hedge Fund.
Value investing principles underpin the stock selection strategy. Stocks with a maximum margin of safety and a good outlook for future growth are chosen to build high yielding portfolios. Simply put we buy stocks whose intrinsic value is much greater than the market value and hold them till the value unlocking has taken place in the market. Once they have surpassed their fair value and seem overpriced we exit our positions and book profits. Value investing methodology has many staunch advocates including Warren Buffett, Charlie Munger, Rakesh JhunJhunwala, Benjamin Graham and Vijay Kedia amongst many other famous investors. Some salient features of the fund include the following.
I. No Company is given a weightage greater than 5% in the portfolio.
II. No sector is given a weightage of over 25%
III. Ideally Companies with low debt to equity ratio, growing top and bottom lines, strong balance sheet run by competent professionals are chosen.
IV. Trustworthy management with strong ethics.
The strategy is a blend of value investing along with growth at reasonable prices. The recommended holding duration of the fund is a minimum of 3 to 5 years. To learn more about our Deep value Portfolio get in touch with us here.
This fund invests primarily in large cap companies who have survived multiple business cycles and are better equipped to handle bearish markets. A relatively safer option for investors willing to take moderate risks and are looking to make moderate returns in line with the broader market indices such as the Nifty and the Sensex. The objective of this fund however is to beat the indices and it does so with the help of derivatives such as futures and options. Derivatives protect the risk of a sudden downfall in the investor’s portfolio. Salient features of the fund include the following.
I. Invests in Large Cap companies only, calculated by free float market capitalisation.
II. Uses derivatives such as futures and options to hedge downside risk.
III. Objective is to beat Large cap index returns such as Nifty & Sensex.
IV. Does not use leverage greater that the amount invested by an investor.
For more information on our Large Cap Hedge Fund you may contact us here.