Model Portfolio Prime Series 8 is a set (basket) of 11 equity stocks that are collectively worth approximately Rs 1 Lakh (Rs1,00,000/-). These stocks are carefully selected by the Equity Research team purely based on technical analysis with the objective of helping investors generate returns that are likely to better the underlying benchmark, CNX 500, over a period of one year.
P.R.I.M.E. Series 8 is the eighth portfolio, from the stable of highly successful previous Model Portfolio series, that the Research team has compiled over the past year and a half.
This model portfolio series is made up of 11 equity stocks that are clubbed together in optimal proportions, after a careful and thorough evaluation, to reach a favourable risk-reward ratio. SBICAP Securities’ Research team, through its expertise and experience, does exactly that and comes up periodically with a selection of stocks that are bunched together as an investible portfolio worth approximate Rs 1 Lakh.
P.R.I.M.E. Series 8 offers a general equity investor to avail of the facility of the Research team’s professional advice on stock investing so as to generate superior returns on his/her investments.
All of our previous seven model portfolio series have weathered market fluctuations admirably and consistently. For every series, stock selection process and performance forecasts have been based on thorough research and in-depth market understanding. The equity stocks selected were the ones having the potential to outperform the current (existing at the time of launch) market in the medium to long term duration. Portfolio mix varied in large, mid and small-cap companies to provide overall balance to the investment, after considering various aspects like earning growth, return ratios, valuations, leverage positions and growth prospects. We have compared our portfolios with sectoral weights of CNX 500/100 to cover maximum possible industries in order to reduce the unsystematic risk. Following is a table depicting the performance of our previous model portfolio series.
|Scheme Name||Category||Launch Date||Benchmark||Return in %||Benchmark
|Model Portfolio - Series-1||Diversified||22-Jan-16||CNX 500||37.4||18.2||Closed||19.2|
|Model Portfolio - Series-2||Diversified||28-Mar-16||CNX 500||38.2||23.9||Closed||14.3|
|Model Portfolio - Series-3*||Diversified||12-Jul-16||CNX 500||33.8||18.8||Closed||15.0|
|Model Portfolio - Series-4*||Diversified||23-Dec-16||CNX 500||42.7||33.0||Series Open||9.8|
|Model Portfolio - Series-5*||Diversified||17-Mar-17||CNX 100||19.9||11.6||Series Open||8.2|
|Model Portfolio - Series-6*||Diversified||17-Mar-17||CNX 100||18.9||11.6||Series Open||7.3|
|Model Portfolio PRIME - Series-7*||Diversified||07-Jul-17||CNX-500||9.8||6.9||Series Open||3.0|
One needs to invest in the portfolio now. The portfolio has a limited window available for investment. This window is upto 8th December 2017 after which the risks of the portfolio are likely to alter given the movement in stock prices.
The market may indeed be close to peak in terms of levels but not necessarily in terms of valuations. We assess that the markets are delicately poised on the value-versus-growth scale. Putting it differently, we believe that the market is neither very costly nor very cheap.
It is recommended that all the stocks are bought in the quantities mentioned. Else, the risk-return profile will get altered unfavourably. Therefore, all-or-none is our recommendation on the portfolio.
The risk-return profile gets altered unfavourably in such an event. We reiterate, it is all-or-none investment advice. All stocks have to be bought to achieve a balance in terms of risk-reward. One may continue to hold the other or excess stocks in ones account till such time as the original investment objective of buying those stocks is achieved.
Not advisable at all. Please buy in the recommend quantity only.
The window for investment is open until 8th December 2017 after which the risks of the portfolio are likely to alter given the movement in stock prices. Therefore, it is advisable to complete the entire investment by 8th December 2017.
We recommend investment at whatever price is available in the market at the time of investment. There is no need to wait for the price to appear on the screen. What is important is to buy in the recommended quantity.
Our portfolio construct is well thought out and researched. Avoiding or skipping any stock is not advised. We reiterate, it is all-or-none investment advice.
Apart from standard transaction charges like brokerage, STT, GST, exchange fees and demat charges on regular stock purchases, there is no extra charge levied by us for investing in the portfolio.
The portfolio is meant to be held for a year. Any holding of shorter duration will attract short-term capital gains tax and a potential loss on dividends. It is only under exceptional circumstances peculiar to oneself that the portfolio should be sold before the expiry of one year.
There is no maximum investment limit set by us. Minimum investment is approximately Rs 1 Lakh and any excess investment to be made is a multiple of Rs 1 Lakh.
The market may indeed be close to peak in terms of levels but not necessarily in terms of valuations. We assess that the markets are delicately poised on the value-versus-growth scale. Putting it differently, we believe that the market is neither very costly nor very cheap. Earnings trajectory looks strong given the smoothening of the initial glitches of GST implementation. There are currently multiple triggers or tailwinds like a) robust domestic inflows (Rs 1.17 trillion net investment in last one year), b) resumed FII buying after two consecutive months of selling, c) sovereign rating upgrade, d) PSU bank recapitalisation, e) growth oriented reforms, f) robust tax collection (Direct tax up 15.2%), f) successful disinvestment (to cross Rs 1 trillion against budget of Rs 72,500 cr), g) GST cut led consumption boost and h) controlled inflation and low interest rate leading to burgeoning investment allocations toward stock markets. We are hopeful that a combination of above factors coupled with rural development thrust and the oncoming industrial revival through railway-highway-led investment push should be able to counter any downward pressure.
Analyst Certification: The views expressed in this research report ("Report") accurately reflect the personal views of the research analysts ("Analysts") employed by SBICAP Securities Limited (SSL) about any and all of the subject issuer(s) or company (ies) or securities. This report has been prepared based upon information available to the public and sources, believed to be reliable. I/We also certify that no part of my/our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report.
The Analysts engaged in preparation of this Report or his/her relative:-
The Analysts engaged in preparation of this Report:-
|Mahantesh Sabarad||B. E. MMS||Head - Retail Research|
|Rajesh Gupta||PGDBM (Finance), MA (Bus. Eco)||AVP - Research|
|Ashu Bagri||B.com||AVP - Technical Research|
|Amit Bagade||MBA||Technical Analyst|
|Vijay Ramchandani||M.com (Finance)||Research Analyst|
|Pratik Poddar||B.com, CA||Research Associate|
|Jaldeep Vaishnav||PGDBM (Finance)||Derivative Analyst|
|Hemang Gor||CFA (ICFAI)||Derivative Analyst|
|Netra Deshpande||MMS (Finance)||Currency Analyst|
|Mital Chheda||MMS (Finance)||Mutual Fund Analyst|
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