Almost all actively managed diversified equity mutual fund schemes primarily aim to generate alpha by “not mirroring the index”. But not all schemes are successful. In fact generating alpha has become a real challenge for the active fund managers over the last many years, Past data suggest only 3% are actually able to deliver ALPHA.
Actively managed mutual funds with robust stock selection methodologies have the advantage of exploiting the large alpha potential offered by Indian stock markets.
Moreover, good businesses run by quality management are capable of tapping growth opportunities and grow at much faster pace than nominal GDP growth rates.
Timely identifying and including such businesses in the portfolio can augur well in terms of translating into superior long term returns.
While active fund managers have the ability to exploit the advantages offered by Indian stock markets and create alpha in the long run, not every fund manager and fund will be successful. In ‘The Alpha Strategy’ we have funds that are delivering high alpha generating equity funds that have proven their ability to beat the benchmark and the category average by a noticeable margin. They have generated superior risk-adjusted returns for the investors in the past; and have the ability to do so in future as well.
In the Alpha Strategy, we use our latest S.M.A.R.T. Score model to arrive at high alpha generating funds