DYNAMIC PORTFOLIO CONSTRUCTION

  DYNAMIC PORTFOLIO CONSTRUCTION

This portfolio construction strategy is tailor-made designed for dynamic investors who cannot follow the buy and forget strategy. This is a combination of a growth model of MFS and dividend model of MFS wherein the dividend are like part of the notional profits are converted into realized gains. Few clients need regular cash flows as its often seen notional profits can get wiped out if not taken on time.

The crash of 2008 wherein stocks multiplied many times and people who didn’t sell their holdings saw their portfolios going into the red for many many years. Moreover, today we are living in the world of disruptions wherein every other sector is getting disrupted. Ex electric vehicle wave and OLAS, UBERS can cause a serious dent in Maruti car sales in years to come. Fintech companies are taking market share from banking counterparts and many others.

So, we try to pick up stocks and sectors by combining financial trends with technology trends. We find high growth companies with solid earnings profile and strong technical charts coming out of solid base formations. In 2018, we spotted the trends in FMCG, IT, few pockets of consumer discretionary space and thus we always able to find the new emerging sectoral trends. We were very early to identify the negative trends developing in chemicals, metals pack and we sold most of the holdings in Jan 2018 when we sensed the exhaustion and fatigue in these sectors. So, this portfolio is for active, agile and smart guys who want to make money in rising and falling markets.

Also, we don’t hesitate to short the markets and stocks when we feel that there is downward momentum. So, its like adjusting to market conditions and making money on the long side as well as a short side. We never complain about markets falling because we tend to find ideas which can outperform by going long on such ideas and we short weak stocks in falling markets and thus a win-win situation for us and our clients.