Distributors who understand SIF early will benefit

Market Outlook: The Indian equity market looks positive with strong macro indicators including healthy GDP growth, controlled inflation and supportive OECD projections. Global tensions are expected to ease gradually. Valuations in both large-cap and small-cap segments are at long-term averages, making the overall outlook bullish.

Investment Philosophy: The focus is on building a well-diversified core portfolio of quality companies with reasonable valuations and positive momentum. Weaker companies are identified for shorting during difficult market phases, reducing downside risk while generating alpha.

Key Differentiator — Mosaiq Platform: An internally built platform called Mosaiq tracks over 40 factors across 500+ stocks, updated daily. This global infrastructure enables a more structured and data-driven approach to managing long-short portfolios, bringing global experience into the Indian market.

Why a Quantitative Strategy? Most global long-short strategies use quantitative models, especially for shorting. Two models are used — a macro model that decides long-short allocation and a multi-factor model that selects which stocks to go long or short on, focusing on one to three month predictions.

Managing Downside, Not Eliminating It: The goal is not to avoid losses entirely but to reduce their extent. If markets fall 20%, the strategy aims to limit the decline to around 15%, helping investors recover faster.

Educating Distributors: Active workshops are being conducted across India covering what SIFs are, how they differ from mutual funds and key aspects like taxation. Distributor engagement has been strong, with Q&A sessions growing longer as interest deepens.

This is a brief overview of the market outlook, quantitative investment strategy and distributor education initiatives shaping the evolving investment landscape. To know more in detail, click here.