Security and multiplication are the criteria under which investments are made. But market fluctuations are generally unpredictable. While the reasons for this are many, what matters is that your investments keep performing profitably.
Hence we bring you the BEP – Large cap focus portfolio, where investments will be made in mis-priced large cap stocks that have a high growth potential and can withstand macro level risks to sustain in an adverse environment. Large Caps are dominant players in their respective sectors, and hence have the strength and the ability to maintain margins in a tough operating environment.
Key Features of the BEP – Large cap focus portfolio
The portfolio will seek to achieve returns through broad participation in large cap companies
The portfolio will primarily invest in scrips which are mis-priced, but have a very high growth potential over a period of time
These large cap companies have defensive businesses and can withstand macro level risks
These large cap companies are dominant players in their respective sectors
Advantages of Investing in the BEP – Large cap focus portfolio
Concentrated and Compact portfolio
The portfolio shall adopt the active management style to identify mis-priced assets and use various stock selection strategies to outperform
Portfolio to focus on large caps with stable and visible growth potential
Why Large Caps
Large caps have a high growth rate in adverse environment as:
They can sustain hardening interest rates
They have adequately capitalized balance sheets
They have underleveraged capital structure
They have higher capital productivity
They can manage lower cost of financing
They have large size of cash flows
Large caps recovered more than mid caps in June-july 08. This indicates the superior risk-return trade-off in volatile markets. See illustration below
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