Wealth Forum Tv

This smart beta new fund aims to beat actively managed competitorsUmesh Kumar Daila, Mirae Asset India MF, Mumbai

Share this Video :
More From :fund talk
Video Summary
Read in
  • English

Mirae Asset has launched a smart beta small cap fund that uses liquidity as its first filter and then 2 factors – quality and momentum –to select 100 stocks from the 250 stock index. Its Small Cap 250 Momentum Quality 100 ETF and FoF can potentially beat actively managed small cap funds with its twin focus on quality and momentum factors, says Umesh.

Momentum is measured for 6 and 12 months and its short list is independent of quality parameters. A separate quality filter is then applied which considers consistent growth in earnings and returns parameters. A composite score based on these two factors is determined, to which a market cap weight is applied to finally get stock weights of the top 100 stocks that find their way into this factor based portfolio.

While it is true that imposing a quality factor can potentially eliminate promising young companies with short track records, Umesh believes this also safeguards the portfolio from significant downside risk that comes along with investing in very young businesses. On a risk-adjusted basis, he believes a mix of momentum and quality help capture healthy upside while protecting from sharp drawdowns from bad stock choices.

Share your comments
(Type INV if you are an investor)
Comments Posted
Rakesh jariwala ARN NO :ARN207269 Surat, 23 Feb 2024

Very interesting & first of its kind smallcap etf

Mohsin Bijepuri ARN NO :33913 Chennai , 21 Feb 2024

Interesting concept with unique qualifying metrics indeed.

Copyright 2017   All Rights Reserved.Wealth Forum Ezine