Frequently Asked Questions (FAQ)
Our singular focus right from inception has been “Wealth Creation” through long term equity investments.
The platform executes over 300 algorithms to analyze Risk Tolerance, Selection of the Stocks, Diversification of the Portfolio, as well as Portfolio Allocation of each Stock and then create a Personalized Portfolio of 15-20 Fundamentally Sound Stocks for you.
The model also keeps a 24×7 track of the investor’s portfolio companies throughout the year and provides rebalancing as required.
As part of Equentis group, we have had the advantage of being full time into the world of investments, with primary focus on equity markets in India since 2009. Our initial focus was only HNI clientele; however we realized that our “Wealth Creation” strategy can be equally effective for retail investors as well. This is when we opened Research and Ranking (www.researchandranking.com) platform about 2 years ago for retail investors.
You can check our performance by visiting the below mentioned link:
Yes, certainly. Once the portfolio is created, we track portfolio growth every quarter and portfolio rebalancing is done if required to make sure that Yearly Growth is captured along with the long term growth in the business.
We have close to 25000 registered users and a healthy paid client base in FOUR DIGIT’s that is growing rapidly.
If you are planning for a lump sum investment, then you may start as small as INR. 2 – 3 lac capital for investment. Generally we recommend SIP while buying stocks. So, after enrolling for our subscription you may start an SIP in the R&R recommended Personalized Portfolio.
We recommend our Online Personalized Portfolio service if your investible surplus is up to 25 lakhs. If you have an investible surplus greater than or equal to 25 lakh we recommend you to call us to know more about our Offline service for Ultra HNI clients.
Portfolio changes are primarily done when we see that the business/earnings growth has lost the momentum. So, as soon as, we feel that the fundamentals of any stock from our recommended portfolio have deteriorated, we ask you to EXIT from that stock and then we replace the exited stock with better opportunity, meeting our 5X criteria.
Ideally, we would love to see every stock grow up to 5 times over next 5 years. However due to uncertainty in the equity markets, we can be honest in admitting that this is unlikely. However, the composition of the picks is such that, overall the portfolio is expected to grow up to 4-5 times over a 5 year holding period.
Our analysis proves that these small stocks do not have adequate history or enough management transparency or enough liquidity. In other words, even if they may grow in the future, the risks attached to such small businesses are very high and do not allow us to make meaningful study on these businesses.
We believe that the Time you stay invested for works in favor of wealth creation rather than Timing the markets. To avoid timing the market, we recommend buying stocks in SIP manner in our recommended portfolio. Also we believe that if the company fundamentals are moving in the right direction, the stock price has a stronger probability of moving higher no matter when you enter the market.
Instead of providing any direct discounts to our customers, we thought “Why not we gift you something that will have more than just the emotional value; whose monetary value will also appreciate with time”?
And for us, there is no better example of such an ‘appreciating’ gift other than shares.
- Your Gift Shares have the potential to appreciate over time, making you learn the art
of wealth creation and increase your belief in long term equity investments.
- The appreciation in the Gift Shares can potentially earn you back a large part of the
subscription fee paid to R&R over a period of 5 years or more.
Yes, our payment gateway makes it easier for you to avail easy EMI options with almost all major banks using your credit card.
A common saying says, “Don’t judge a book by its cover.”
Similarly, “Don’t judge a stock by its share price“.
Investors often make the mistake of looking only at stock price, because it is often the most visibly quoted number in the financial press. However, the actual price of a stock means very little unless many other factors are considered.
It is only the certainty and quality of earnings growth profile which will determine the upside potential of a stock, irrespective of the levels at which it is currently trading.
A Rs 300 scrip may swell and have the potential of being a Rs. 5000 scrip whereas a Rs. 50 scrip may well slide to trade to 5 Rupees.
To conclude – Irrespective of the current market price, the fair value of a stock is a function of its earnings growth potential and valuation multiple; thereby determining the corresponding upside / downside.
Eg.- Over the last 5 yrs – Welspun Corp from Rs. 150/- is down and now trading at Rs. 85/- whereas Eicher Motors from Rs. 1700/- has catapulted to over Rs. 25000/- over the same period.
Over the last 5 yrs – Reliance Communications from Rs. 68/- is down to Rs. 19/- whereas Maruti from Rs. 1100/- has catapulted to over Rs. 7300/- over the same period.
Hence, stock price per say should have no bearing in guiding your stock picking skills. The ability to understand business and their potential and what would be a fair valuation multiple, amongst many other qualitative factors would all imply the upside potential.
Our Wealth Creation strategy is Market-Cap and Sector Agnostic. The portfolio is carefully constructed after screening through a vast investment universe of over 3000 listed stocks; which would typically cover all known and unknown companies.
Our stock selection criteria for Wealth Creation heavily focuses on businesses that exhibit the following criteria –
- Businesses that are in sectors that can grow higher than India’s Real GDP growth rate with fair degree of consolidation. E.g. If we believe India’s real GDP will grow at 7% p.a. then we will like to focus on sectors that have the potential of growing at 12-16% p.a.
- Businesses that do not face risk of losing business share to substitute or alternate products. Businesses that have minimal regulatory policy related risks.
- Businesses that have strong and sustainable competitive strengths derived out of Market Leadership / Customer Relationships / JV Partnerships / Cost Leadership / First Mover advantage / Brand Pull etc.
- Businesses that do not require recurring and large capital requirements i.e. both working capital and fixed capital to fund growth.
- Businesses that are run by management of exceptional caliber with ability to successfully scale up.
- Businesses that generate free cash flows with supreme focus on balance sheet management.
The result from the above screener is further shortlisted based on liquidity, beta / volatility and risk return potential.
We firmly believe that a 25-30% CaGR on a large, growing, market leading company with robust financials and healthy balance sheet is far superior compared to say a 50% return on a relatively unknown company which will have many moving parts adding to the uncertainty in the expected returns.
Having said that we are always on the lookout for investing in sound businesses (unknown and known companies) run by high quality management which are available at compelling valuations.
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*Refers to our Group company, Equentis Capital Pvt. Ltd.
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