Mirae Asset Mutual Fund (India)’s Post

Transcript

Hello everybody. Alpha investing or also known as momentum investing is all about capturing latest market trends and by that I mean latest. Performing stocks in Nifty 200 Alpha 30 Index 30 stocks which have delivered Jensens Alpha, also known as simply Alpha in last one year over Market Index is selected to form part of the portfolio. The idea is that if a portfolio is created out of stocks which are doing well, the portfolio itself will do well. This is a high risk, high reward strategy. In India, which has done well in recent times and is an uptrending market, alpha strategy has worked really well in bull market as well as in a long term. For example, in last one year Nifty 200 Alpha 13 index has delivered 78% return whereas in last five years it has delivered 30.5% return. It has outperformed Nifty 200 index by almost 42.2% in last one year and 11.8% in last five year respectively. Now Nifty 200 Alpha 30 index is one of the truest approach or true to the label approach to target alpha or momentum investing. Now why am I saying that? The reason is that not only stocks are selected based on their outperformance or alpha score but they are also weighted in the portfolio based on their alpha score. So there is no biasness based on the market cap of in stock. This selection happens out of Nifty 200 universe which is 100 large cap stocks and 100 mid cap stocks. So if a mid cap stock is doing well, it will have a higher weightage. If a large cap stocks is doing well, it will have a higher vantage. Unlike several other indices, Nifty 200 Alpha 30 index gets reviewed and rebalanced on a quarterly basis. This ensures that index is trying to capture the market trends and the performing stocks more quickly. So it is selecting stocks based on our performance, it is weighing stocks based on our performance and it is getting reviewed frequently. By this approach, as I mentioned, we believe Nifty 200 Alpha 30 index is one of the better approach to target alpha or momentum investing. And we feel which is why it outperforms Nifty 200 Momentum 30 index by 10.9% in last one year and 3.6% in last five year year period respectively. It also outperforms all large and midcap active funds direct plan in last one year, three-year, five year, seven-year and 10 year periods. By a margin of almost 8.4% in last five year and 37.5% in last one year. So who says that passive doesn't work in a mid cap space? If an index is made in a with a good methodology. It can deliver reasonable returns. Obviously alpha investing comes with its own set of risk also, which is it typically has a have a higher volatility. So investors who are looking to invest in an alpha or momentum based strategy. Can look forward to invest in a fund which is based on Nifty 200 Alpha 13 index. From an IT point of view also this portfolio makes a lot of sense. In last five years the SIP return is 40.6% and then last 10 year it is around 28%. Having said that, Please ensure that you are investing from a long term point of view. While alpha investing typically generate returns in bull market, it can have a higher drawdown. So typically a long term investment mindset helps as it allows you to capture one or multiple performing calendar years. The asset is launching Mira Asset Nifty 200 Alpha 30 ETF fund of fund which will invest in our Mira Asset Nifty 200 Alpha 30 ETF. The idea is to provide you a normal non demat mutual fund like route to invest in 5200 Alpha 30 index. The NFO is starting on 8th of July and it will close on 22nd of July. The scheme will reopen for fresh investments from 29th of July. If you want additional information, please visit our website or contact us through social media channels. Thank you for watching this video. Mutual fund investments are subject to market risks. Read all scheme related documents carefully. By 11.9%.