With P.R.I.M.E. Series 8, give your investments a head start.

Closes: 14th December, 2017
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What is P.R.I.M.E. Series 8?

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.

Why should I invest in P.R.I.M.E. Series 8?

One of the principles of successful investing is to achieve a delicate balance between swings in risks and returns that a typical equity market goes through in its normal course. This balance is best achieved by appropriate diversification and with careful selection of stocks whose risk-reward is favourable. 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. Model Portfolio PRIME Series 8 is the eighth  such portfolio that the team has compiled over the past year and a half. Model Portfolio PRIME Series 8 offers a general equity investor to avail of the Research team’s professional advice on stock investing so as to generate superior returns on his/her investments.
Following are the reasons why you should invest in P.R.I.M.E. Series 8 Model Portfolio :

Legacy Of A Successful Model Portfolio Series

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.

Strategic Equity Diversification

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.

Expertise In Stock Picking

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.

Past Performances

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
Return %
status Outperf- ormance
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
* Returns are as on 01st December, 2017

FAQs

  • When should I invest in the Model Portfolio PRIME Series 8?

    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.

  • Isn’t the market at a peak and therefore not conducive for investments?

    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.

  • Can I choose the stocks I want to buy from the list?

    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.

  • I already own some of the stocks. Can I buy only the rest?

    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.

  • I want to buy 10 shares of all the 11 stocks. Should I do so?

    Not advisable at all. Please buy in the recommend quantity only.

  • Can I invest in stages?

    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.

  • Current stock prices are different from that mentioned in the model portfolio, do I wait till the price is seen on the screen?

    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.

  • I do not like The Indian Hotels Co. Ltd. Can I avoid buying it?

    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.

  • What are the charges for investing in the portfolio?

    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.

  • How long does one hold 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.

  • What is the maximum investment that I can make?

    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.

Isn’t the market at a peak and therefore not conducive for investments?

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.

Key Highlights

11Equity Stocks

1,00,000multiples of one lac

1Yearrecommended
holding period

CNX500benchmark

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The Analysts engaged in preparation of this Report or his/her relative:-

The Analysts engaged in preparation of this Report:-

Name Qualification Designation
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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