BM Focused Small Cap

While the markets have come nearer to their highs the small caps haven’t moved at all. We think that the small caps are sitting on the cusp of a big move up. 

In this context we are launching our ‘BM Focused Small cap’ smallcase. And like always we will put in our own Rs 5 lakhs every month into this scheme

1) Investment Philosophy: Investing in smallcaps can be rewarding if we can select market leaders growing at 20% plus with high return on equity of more than 20% and which are available at decent valuations. We have selected companies where there is industry tailwind for the next 3-5 years. We will avoid companies where there are corporate governance issues. We aim to focus on protecting downside risk. 

2) Our Personal Investment: Based on our principle of having ‘thick’ skin in the game, we will put in ₹5,00,000 every month in our new smallcase also. Halwai apni mithai khata hai.

3)Average Market Capitalisation: the weighted average market cap is approximately ₹15,000 crores. We don’t want to buy ultra-illiquid smallcaps run by untested and unscrupulous promoters.

4) Minimum Amount: Theoretically, you can start with Rs 50,000. And scale it up as and when you can. This is a flat fees model. We don’t charge money on AUM. So, the more you put in the better it gets for you. 

5)Portfolio Concentration: This will be a concentrated portfolio of 15 stocks divided across Consumer, Financials, Capital Goods, Construction Real Estate

6)Portfolio Benchmark : Nifty Smallcap100