Equity Long Only (Outperformance Strategy)

Investment Objective:
QPS aims to consistently outperform the Benchmark Index (BSE 200) on a low beta portfolio. The portfolio selection is based on quantitative proprietary model

Strategy at a glance:

Portfolio Construct Process:

  • Portfolio Members: Comprises up to 30 stocks selected from BSE-200 Index – Based on expected risk & return forecasted for each stock, a portfolio consisting upto 30 stocks is chosen so as to minimize risk and maximize returns
  • Stock allocation: Minimum 2%, Maximum 12% per stock
  • Rebalancing Frequency: The portfolio is rebalanced once in every 40 trading sessions
  • Rebalancing Method: The calculation of Expected Return & Expected Risk in each stock is based on proprietary models. The expected return & risk are in turn used to estimate the stock weights
  • Estimation of expected returns / standard deviation / covariance matrix: On the basis of historical performance of the stock compared to the benchmark Index

Why QPS?
» Quant based approach
» Model signals exit and entry in securities
» Strategically driven with no human intervention
» Investment by fixed rules
» Quant model is pre-tested to throw up investment signals
» Model is rigorously back tested to optimize risk-return

Click here to view the Monthly Tear Sheet