Ideal for investors who hold a view that investment in mid caps and small caps involve an elevated risk. They would always prefer to see their investments in large cap shares, on a belief that their business models are sustainable and levels of corporate governance are usually very high. Large Cap Growth restricts its investments throughout its horizon into stocks that have a market capitalisation of more than Rs. 10,000 crores.
Vivekam’s screening process will identify the growing stocks among large caps and assigns fair values to all of them. After that, comparing the current market prices with fair values, companies with highest scope to grow will be included in portfolio. Diversification of portfolio will be taken care of by including stocks from at least five sectors. Once stocks included in the portfolio, Vivekam will keep an eye on any news about operational performance from these companies on a daily basis and will review its fair value as soon as quarterly results are announced.
Whenever the performance of a company slips in subsequent quarter, the stock should be sold and replaced with another stock that is growing and has got a large scope to grow. During the quarter, if a stock reaches the fair price predicted, it should be sold and the proceeds be converted into liquid bees till next quarter results are announced by companies.
For how long?
Vivekam’s study of past 13 years of data suggests a minimum period of three years to achieve optimal results.
Returns2 Year3 Year5 Year
Large Cap Growth24.33%23.43%23.89%
Core Concept used for: Large Cap Growth
“Valued companies are valued because they hold values within” is the underlying principle that Vivekam considers in this product. Without any inhibitions, Vivekam attempts to stand behind the clear winners among large caps at all times. Even in most adverse situations, drawdown in these stocks is expected to be limited.