Wifty is Vivekam’s solution to investors looking to invest only in Large Cap stocks and with low risk appetite. Investors seeking to gain exposure into equities but with need for higher safety and liquidity can do so with Wifty.
Indices like Nifty 50 and Sensex comprise of stocks that are most representative of their respective stock exchanges in terms of liquidity, market capital, volume traded, etc. The stocks included are all large cap companies that enjoy the advantages of liquidity over companies belonging to the mid or small market cap categories. These stocks relatively have a lower risk/volatility and therefore the scope of returns is lower compared to mid and small cap companies.
Vivekam believes that not every stock in the Nifty 50 has strong fundamentals and great potential to grow. Wifty is designed to have all the positives of Nifty 50 all while eliminating the bad apples in the index.
The idea is to analyze the 50 stocks and hold only those stocks that are growing. Like the rest of our equity products, the objective is to generate alpha. Once bought, stock should continue to be held in portfolio unless the results turn bad in subsequent quarters or the stock is taken off the Index.
The effort is to make sure that the existing investment of clients is always representative of growth stocks in Nifty in the same weights as they represent in Nifty. Just by eliminating some bad apples from investors holdings, we have observed a marked improvement in performance from the year 2009 onwards. Portfolio are rebalanced 30 days after quarter end in a staggered manner to ensure investors portfolio only has growth stocks. This product is ideal to clients who are nervous about the direction of the market in general and mid-caps or small-caps in particular.
To ensure we have enough capital to adequately purchase the necessary growth stocks from the Nifty, Vivekam suggests a recommended investment size of Rs 10 lakhs or more.