Factsheet of Multicap Momentum Model PortfolioType of Model Portfolio: Multicap PortfolioLaunch Date: 6th Jun 2025Rebalancing Date: 1st April 2026Risk Level: HighMethodology: This model portfolio follows a momentum-based strategy aimed at capitalising on prevailing market trends to generate superior risk-adjusted returns.A) Entry Criteria: From the universe of Nifty 500 stocks, the top stocks with the highest weighted average returns—calculated over a period ranging from 2 months to 1 year (tentatively)—are initially shortlisted. From this pool, few stocks are then selected through a detailed evaluation that includes price action analysis, key technical indicators, etc. This process blends momentum investing with both qualitative and quantitative filters to ensure a more robust and well-rounded stock selection.B) Exit Criteria:Stocks will be exited from the portfolio based on the following parameters:1. Loss of Momentum: Stocks that no longer qualify among the top momentum performers, based on updated rankings, will be considered for removal.2. Exclusion from Nifty 500 Segment: Stocks that lose their eligibility for trading in the Nifty 500 segment will be removed from the portfolio to maintain liquidity standards and align with the portfolio's predefined criteria.C) Rebalancing Frequency: The portfolio is reviewed and rebalanced on a monthly basis, typically around the 1st week of each month. Any changes made will be communicated promptly and transparently, along with the rationale behind them. In the event of significant shifts in market sentiment, interim rebalancing may be undertaken to safeguard the model portfolio against undue volatility.D) Asset Allocation StrategyEquity Allocation (Up to 95%): Primarily invested in equity stocks based on the aforementioned momentum and selection criteria.Debt Allocation (Up to 20%): Diversified through Debt ETFs to enhance stability and manage downside risk.This methodology ensures a structured yet dynamic approach to portfolio management, aligning with changing market conditions while maintaining a balance between growth, stability, and risk mitigation.Investment Horizon: The investment duration is flexible and governed by the entry and exit criteria, with no fixed holding period.Frequency of portfolio review and update:The model portfolio adheres to a fixed monthly review cycle. All portfolio updates and revisions are shared with clients, ensuring clarity, consistency, and transparency.Risk Disclosures for the Model Portfolio:Investors should note that this model portfolio involves market-related risks. Key risks include:1. Market Risk: Exposure to equity markets means returns may fluctuate due to broader market volatility. While large-cap stocks offer relative stability, mid- and small-cap segments can be more volatile.2. Sector Risk: Sector concentration may adversely affect performance if particular sectors underperform. Diversification helps mitigate this risk but does not eliminate it.3. Interest Rate Risk: The debt component is exposed to interest rate movements. Rising rates can lead to price depreciation in bond ETFs, affecting the portfolio's defensive component.4. Liquidity Risk: Some portfolio stocks may have low trading volumes, impacting execution at desired prices—particularly during volatile periods.5. Rebalancing & Tactical Risk: As rebalancing follows a monthly cycle, any delays or missed adjustments could temporarily skew the portfolio's risk-return profile.6. Inflation & Economic Risks: Broader macroeconomic trends—such as inflation, GDP variations, or geopolitical tensions—may impact overall market sentiment and returns.Risk Management Approach:A disciplined and multi-layered risk management framework is integrated into the portfolio construction and monitoring process:1. Diversification: Exposure is spread across multiple sectors, asset classes, and market capitalizations to minimize concentration risk and improve overall risk-adjusted returns.2. Asset Allocation Discipline: Allocation of up to 95% in equities ensures growth potential, while up to 20% in Debt ETFs acts as a stabilizer during volatile market phases, reducing portfolio drawdowns.3. Dynamic Rebalancing: The portfolio is reviewed monthly, allowing timely exits from underperforming or deteriorating stocks, and reallocation into stronger momentum picks. This ensures responsiveness to changing market trends.Risk Management Approach:A disciplined and multi-layered risk management framework is integrated into the portfolio construction and monitoring process:1. Diversification: Exposure is spread across multiple sectors, asset classes, and market capitalisations to minimise concentration risk and improve overall risk-adjusted returns.2. Asset Allocation Discipline: Allocation of up to 95% in equities ensures growth potential, while up to 20% in Debt ETFs acts as a stabiliser during volatile market phases, reducing portfolio drawdowns.3. Dynamic Rebalancing: The portfolio is reviewed monthly, allowing timely exits from underperforming or deteriorating stocks, and reallocation into stronger momentum picks. This ensures responsiveness to changing market trends.Benchmarking of the Model Portfolio:The Nifty 500 Index has been chosen as the benchmark for this model portfolio, as it represents the broader Indian equity market, covering large-cap, mid-cap, and small-cap stocks. Given the portfolio’s diversified nature, Nifty 500 provides an appropriate reference for performance evaluation. Since Nifty 500 encompasses companies across different growth cycles, it serves as an effective reference point for assessing the relative performance of the model portfolio. Any significant deviations from the benchmark will be analysed, and rebalancing decisions, if necessary, will be communicated accordingly.Rationale for the Model Portfolio: The objective of this model portfolio is to capture alpha through a momentum-driven strategy, while maintaining a balance between growth potential and risk management. The portfolio is designed for investors seeking actively managed equity exposure with a disciplined, rule-based framework.This strategy focuses on identifying high-performing stocks based on recent price momentum, supported by technical analysis, fundamental strength, and market trends. By re-evaluating and rebalancing the portfolio monthly, it remains adaptive to changing market conditions and avoids prolonged exposure to underperforming stocks.Portfolio Composition:1. Equity Component – Up to 95%The equity portion forms the core of the portfolio and is constructed using the following methodology:Stock Universe: Nifty 500 StocksSelection Basis:- Top stocks based on 1-year weighted average price performance- Final selection of 15 to 20 stocks after evaluating: Price action trends & Technical indicators etc.Weight Allocation: Equal or tactical, depending on conviction and risk assessmentExit Rules:Loss of momentumStocks that lose their eligibility for trading in the Nifty 500 segmentThis equity allocation aims to maximize capital appreciation by staying aligned with the strongest performers in the market.2. Debt Component – Up to 20%To reduce portfolio volatility and enhance capital preservation, up to 20% of the portfolio is allocated to Debt ETFs, which offer:Lower correlation with equitiesStability during market correctionsLiquidity and cost efficiencyThis hybrid allocation ensures the portfolio is not overly exposed to equity market swings, providing a more balanced risk-return profile.Disclaimers: 1. Investments in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, Enlistment with RAASB/BSE and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.2. We do not give any assurance or guarantee of profit or protection from loss in any form. We only provide research recommendations and Model Portfolios. We do not provide any service based on profit sharing, fixed returns, or similar services.3. The research analyst or research entity or his associate or his relative does not have financial interest in the subject companies.4. The research analyst or its associates or relatives does not have actual/beneficial ownership of one percent or more securities of the subject companies, at the end of the month immediately preceding the date of publication of the research report/ document or date of the public appearance.5. The research analyst or his associate or his relative does not have any other material conflict of interest at the time of publication of the research document/ Model Portfolio or at the time of public appearance.6. The research analyst or its associates does not have received any compensation from the subject companies in the past twelve months. The research analyst or its associates does not have managed or co-managed a public offering of securities for the subject company in the past twelve months.7. 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