Sampadha’s Large-Cap Technical Value
Technical Value is a semi discretionary and quantitative strategy on large-cap companies
Sampadha’s Large-Cap Technical Value Objective
The objective of the strategy is long-term capital appreciation from a concentrated 15 stocks reviewed and evaluated on monthly basis.
What is Quantitative Strategy?
- Quant based strategies are complex models used to identify opportunities
- These models consist of strategies based on Quantitative parameters which rely on fundamental, technical and derivatives data.
- Technical, and Derivatives data and Statistical models are developed by leveraging data on parameters that impact price movements of underlying instruments.
- Price, Volume, and Open Interest are the major data inputs for Quant models.
- Hedge Funds and other big financial institutions use these strategies to generate additional returns
Benefits of Quant Models
- Reduces Human emotions, biases, and minimizes errors during trading decisions.
- A disciplined selection and execution process offers better risk control.
- Consistency in strategy
- Uncorrelated returns with other asset classes and sub-asset classes
- Additional investment option for market participants
Product / Strategy Suitability
The strategy is suitable for traders/investors/participants who are seeking
- Stable capital appreciation over the long term
- Suggest stocks from large-cap space based on technical and quantitative analysis
- This is best suitable for high risk seekers
- This may not be suitable for low risk averse people
About the strategy
- This strategy screens stocks of large-cap space
- The product or strategy will actively look for opportunities to achieve the objective of long term capital appreciation by suggesting stocks which are in strong uptrend and strong momentum
- Stocks in downtrend are avoided
- Monthly product and evaluated quarterly
- Ideal investment size is Rs 1,00,000/- and may vary based on market dynamics
- For better performance, stay subscribed for a minimum period of 2 years
What to expect?
- Steady capital appreciation over long term
- Worst crashes during market correction phases
What not to expect
- Quick profits from the strategy
- Overnight get rich
- Equity as an asset class has the best potential to beat inflation in the long run and generate long term wealth
- This strategy suggests stocks from large-cap space
- These are India’s top companies with proper business models, a strong track record for decades and institutional holding is also high
Strategy Subscribers/ Clients / Investors should consider the risks involved with investing and trading, decide or consult your financial planner whether the strategy suits your risk profile, investment requirements and financial goals.
- Also, assess your financial status so that you have sufficient resources and emotional tolerance to bear any losses which may result from this strategy or product.
- Consult your financial planner if in doubt about whether the strategy or product is suitable for them else, please
- Check our risk profile questionnaire to find out suitable product and strategy for you
Investments or trades are subject to market, economic, regulatory, market sentiment and political risks. All investors or traders should consider these risks that may impact their capital, before investing. The value of the investment may become worth more or less than at the time of the original investment. The strategy may experience high volatility from time to time
Risk of investing in probable unsustainable/weak companies. There may be a case where the good/strong company may become weak/unsustainable, may slip from India’s most favored company tag and become illiquid in the derivatives segment and subsequently may be removed from the derivatives segment
Price and Liquidity Risk
The product or strategy may suggest trades and investments in high volatile phases of markets and may also hold positions and which may become illiquid. Risk of overpaying for a company. Proper timely exit or cost of efficient sale can be impaired due to reduced trading volumes or increased price volatility.
The product or strategy is subject to regular market fluctuations or volatility and the risks are associated with trading or investing in financial markets. Therefore the value of asset or investment and income from the asset or investment shall rise or fall and you may not even get back the originally invested amount or in the case of derivatives may even lose more than the originally invested amount.
The investment/trading analysis techniques and risk analysis done by Sampadha will not produce the desired risks or returns, and that certain policies or developments may affect the investment/trading techniques in connection with managing the product/strategy.
Total Returns Risk
While our product or Strategy aims to provide capital appreciation, but a positive outcome is not guaranteed over any period and the entire capital is at risk.
Business risk is the risk inherent in the operations of a company. It is also known as operating risk, because this risk is caused by factors that affect operations of the company. Common sources of business risk include cost of raw materials, employee costs, introduction and position of competing products, marketing and distribution costs. Not all businesses are affected by the same risks. Holding a diversified portfolio is an efficient way to diversify this risk.
Risk associated with unfavorable government actions – possibility of nationalization, change in tax structures, licensing etc. is called political risk . Because the government has the power to change laws affecting business/securities, almost all business are exposed to the political risk