Equity Advisory
Scient’s Equity Advisory services are powered by its quant-driven, large and midcap smart beta equity approach targeting excess annualized returns of 2%-4% over a benchmark (BSE Top 200). The approach is a highly customized glide path from the investor’s current portfolio to a suggested ideal mix of stocks that we believe lower risk and volatility, leading to a superior risk-adjusted return.
Advisory Strategy
The equity advisory coverage focuses on the BSE 200 universe of stocks with the objective of leveraging Scient’s proprietary ‘Quantamental’ approach (Quant + Fundamental) to provide views on the investor’s existing stock portfolio
We identify sub-optimal allocations in the portfolio and provide a smooth glide path to transition the portfolio to a more appropriate set of stocks as per our view over 2-4 quarters
Use a factor-based approach, using 4-14 factors across Growth, Value, and Momentum parameters that are most relevant based on the current market cycle
The model tracks historical data for the chosen factors for the past 8 quarters and takes a view of 6 months to 2 years
The approach aims to generate an excess return of 2%-4% over the benchmark
How We Add Value
Use of proprietary Artificial Intelligence (AI) quant model to study various factors and forecast different variables, running multiple simulations to arrive at the target portfolio
Using the model to select factors and factor weights depending on the macro trends, market cycle, and sector rotation – typically 4-14 factors are statistically relevant
Customized approach to advisory with a 2-4 quarter period of alignment from the client’s existing portfolio
Lower cost than traditional active management, without sacrificing performance
Suitability
Investors who want to optimize their existing direct equity portfolio
Investors looking to invest for a horizon of over 3 years
Investors looking to maximize their return with lower volatility in the portfolio
Investors looking to outperform the benchmark and generate alpha by capturing the current trend in a particular sector/stock
Conservative investors with low-risk appetite
Investors looking to earn alpha over traditional debt with lower risk
Investors looking to invest for a period of 3 years or less
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