Our Strategy

1. Identify stocks that can multiply by many folds (say 20/100 times) in long run
2. These stocks are purchased in small quantities at initial stage (say 0.5% -1 % allocation in total equity portfolio) and increased in stages if company's business performance & results are consistently improving. (This helps in picking multibaggers at an early stage with minimum risk).
3. Portfolio is divided into 2 parts Core & Satellite Portfolio
4. Core Portfolio has top performing 15-20 stocks with total allocation of 75-80 % (Say 3 to 6 % each).
5. Satellite Portfolio has 20-30 stocks with 0.5 to 1 % allocation each. Total 20-25 % allocation.
6. Growth is the key factor to multiply wealth in stock market. We are always eager to search growth stocks.

Core Portfolio vs Satellite Portfolio strategy

As an investor, you want your money to grow while keeping risks under control. One effective way to achieve this balance is by structuring your investment portfolio into two key components: the Core Portfolio and the Satellite Portfolio. This strategy combines stability with growth opportunities, allowing you to maximize returns while managing overall risk.

What is a Core Portfolio?

The Core Portfolio is the foundation of your overall investment strategy. It consists of high-quality, stable, and long-term investments that generate steady returns with lower volatility. This portion of your portfolio is designed to protect your wealth and achieve long-term financial goals.

Key Characteristics of a Core Portfolio:

• Focus on Large-Cap Stocks & Well-Established Companies: These companies have a proven track record of stability, solid balance sheets, and consistent earnings.
• Low-to-Moderate Risk: The primary objective is capital preservation and steady growth rather than speculative gains.
• Long-Term Holding Period: Core assets are typically held for years or even decades, benefiting from the power of compounding.
• Diversification: Investments are spread across essential sectors like banking, technology, consumer goods, and healthcare to minimize sectoral risk.

Allocation: Typically, 75% to 80% of an investor’s total equity portfolio should be dedicated to the Core Portfolio.

What is a Satellite Portfolio?

The Satellite Portfolio complements the Core Portfolio by targeting high-growth, high-return opportunities. While it carries higher risk, it provides the potential to significantly boost overall portfolio returns. This is where investors can capitalize on emerging trends, small-cap stocks, sectoral themes, and tactical market opportunities.

Key Characteristics of a Satellite Portfolio:

• Focus on Emerging & High-Growth Stocks: Includes mid-cap, small-cap, and micro-cap stocks with high growth potential (multibagger candidates).
• Tactical & Short-to-Medium-Term Opportunities: Assets may be traded or rebalanced based on market conditions, sector cycles, or performance milestones.
• Higher Risk & Higher Return Potential: Offers the chance to generate outsized gains, though with higher short-term volatility.
• Staged Allocations: Initial positions in satellite stocks are kept small (0.5% to 1% of the total portfolio) and increased as the company demonstrates consistent performance.

Allocation: Usually, 20% to 25% of an investor’s portfolio is allocated to the Satellite Portfolio.

Why Use the Core & Satellite Strategy?

1. Balanced Risk and Reward: Protects your capital with core investments while aiming for higher growth through satellite holdings.
2. Reduced Emotional Trading: Since the majority of your wealth is locked in stable, long-term core assets, short-term market fluctuations won't cause panic selling.
3. Flexibility to Capture Market Trends: Allows you to take advantage of short-term market trends and sectoral rotations without risking your core wealth.
4. Disciplined Wealth Multiplication: Promotes a structured approach to investing—buying small in growth companies early and scaling up as they grow into large caps.