Wright Alpha Fund
Quantitative PMS

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Live Performance

Inception date: Sept. 1, 2023

Since inception One month Three months Six months One year Aum in crore
Wright Alpha Fund 7.75 3.15 -- -- -- 3.36
BSE 500 Total Return Index -0.71 -2.86 -- -- -- --

As of date: Nov. 1, 2023

Backtested Performance

This portfolio management strategy has been running as a model portfolio in our advisory setup for four years

The backtested results for this strategy are as follows:

Backtested Performance Comparison

Investment Objective

The primary objective of the Wright Alpha Fund is to provide long-term capital appreciation by strategically investing in a concentrated portfolio of Indian equities. Our fund seeks to consistently outperform the benchmark through a disciplined, concentrated momentum-based approach, capitalizing on market anomalies and meticulously chosen investment opportunities. While the emphasis is on creating a robust growth trajectory, risk management is given equal importance to ensure the safeguarding of investor capital in various market scenarios.

Disciplined Momentum Based Investment Process

The Wright Alpha Fund employs a disciplined, quantitative momentum investment process. This fund has a concentrated risk with only 10 stocks in the portfolio.

Our investment team uses an academically backed, data-driven approach to identify securities with attractive characteristics based on momentum. The portfolio is structured to be well-diversified across sectors, limiting sector-specific risks and ensuring balance.

We complement this process with weekly rebalancing, fine-tuning the portfolio composition based on evolving market conditions and investment outlook. Additional adjustments may be made on a weekly basis, in response to significant market events.

Investment Approach

Our investment approach centers around dynamic asset allocation. Recognizing the cyclical nature of the markets, we adjust allocations among momentum factors and hedged exposure based on market conditions and expected returns.

Our disciplined investment approach, coupled with an agile asset allocation strategy, enables us to capitalize on opportunities across different market conditions, reducing risk and enhancing potential returns. We strive for a balance between protecting capital and growing assets, delivering a portfolio that can weather market volatility and thrive in favorable conditions.

Why Should You Invest?

Investing in the Wright Alpha Fund provides several key advantages:

  1. Scientific, Momentum-Based Investing: Our investment process is rooted in the power of factor investing - a scientific, evidence-based method proven to deliver superior returns over time. This approach allows us to systematically exploit market inefficiencies and capitalize on proven sources of returns.
  2. Dynamic Asset Allocation and Active Management: Our investment team actively adjusts portfolio allocations based on market conditions, effectively managing risk while taking advantage of growth opportunities. The fund is regularly rebalanced to keep in line with the prevailing investment outlook, ensuring the portfolio stays optimized for growth and risk management.
  3. Strong Track Record: The Wright Alpha Fund (in it's advisory avatar) has a history of consistent outperformance, delivering robust returns in a variety of market conditions. Our combination of a disciplined multi-factor investment process and active management has proven effective in navigating different market cycles.

Key Characterstics

As of date: Nov. 1, 2023

Benchmark: BSE 500 TRI

Top Sector Exposures

Sector Allocation Dynamic
Finance 20.0%
Ship Building 16.0%
FMCG 9.2%
IT 8.4%
Textile 4.9%

Key Metrics

Current Average PE Ratio 29.8
Marketcap Allocation Dynamic
Current Large Caps 14%
Current Mid Cap 20%
Current Small Cap 66%
Sonam Srivastava

Sonam Srivastava

Founder and Portfolio Manager

  • 13 years of experience
  • 4 years of Advisory Experience at Wright
  • Portfolio Management & Algorithmic Trading at HSBC, Edelweiss

Masters in Financial Engineering, Worldquant University

Bachelor of Technology, IIT Kanpur

Minimum Investment: 50 Lac

Shareholders Fee

Entry Load 0%
Exit Load 0%

Fee Structure I - Flat Fee

Only Flat Fee

Fee Structure II - Performance Based

Only Performance Fee with 10% hurdle OR BSE 500 as hurdle
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Frequently Asked Questions

A Portfolio Management Service (PMS) is a professional service where investment portfolios are managed by a portfolio manager on behalf of a client. The portfolio manager makes all investment decisions, such as strategy selection, asset allocation, and security selection, based on the client's investment goals, risk tolerance, and other relevant factors.

There are three types of portfolio management services:

  • Discretionary: Investors don't have to make any financial decisions. All financial decisions and actions are taken by the portfolio manager.
  • Non-discretionary: The portfolio manager suggests possible courses of action and works according to the directions given by the client.
  • Advisory: Portfolio managers advise investors and help them make informed investment decisions. The investor executes the trade.

In India, Portfolio Management Services (PMS) are typically offered to high net worth individuals, corporate bodies, institutional investors, and non-resident Indians (NRIs) due to the high minimum investment requirement.

The Securities and Exchange Board of India (SEBI), the regulatory body for securities markets in India, has set the minimum investment limit for PMS at INR 50 lakhs.

Here are the steps after you have chosen to invest in the Wright PMS. Please note that our expert onboarding will coordinate and help you in finishing these steps with minimum hassle.

  • KYC Completion: Complete your Know Your Customer (KYC) formalities, which will involve providing proof of identity and address.
  • Agreement Signing: You'll need to sign an agreement with your chosen PMS provider detailing the terms and conditions, including the fee structure, investment strategy, and any other relevant factors.
  • Opening a Demat Account: You'll need to open a separate demat account specifically for your PMS investments. This account is needed as, by regulation, your securities can only be held in your account, not by the portfolio manager.
  • Signing a Power-of-Attorney (POA) Agreement: A POA agreement will give your PMS fund manager the ability to buy and sell stocks on your behalf.
  • Funding Your Investment: Finally, you'll need to fund your investment. The minimum investment for PMS in India is Rs. 50 lakh, as mandated by the SEBI.
  • Regularly Monitoring Your Investment: After investing, you'll need to regularly monitor your portfolio's performance and communicate with your portfolio manager as necessary.
The PMS industry in India is slowly moving towards digital processes for account opening, though physical signatures on large forms are still required for now. It's important to remember that while the process might seem complex, each step is designed to protect your investments and ensure transparency.

Portfolio Management Services (PMS) offer several potential benefits, especially for high net worth individuals (HNIs) who can meet the minimum investment requirements. Here are some key benefits:

  1. Customized Investment Solutions: Unlike mutual funds, which follow a one-size-fits-all approach, PMS can be tailored to the individual needs and risk tolerance of each investor. Portfolio managers can customize the portfolio based on the investor's objectives, financial situation, and specific preferences.
  2. Active Management: PMS accounts are actively managed by professional portfolio managers who have the knowledge and experience to make informed investment decisions. This could potentially lead to better returns compared to passive investment strategies.
  3. Direct Ownership: With PMS, investors directly own the securities in their portfolios. This is different from mutual funds, where investors own units of the fund but not the underlying securities.
  4. Transparency: PMS offers a high level of transparency. Investors receive regular reports that detail the performance of their portfolio, the specific securities held, and any changes made to the portfolio.
  5. Access to Exclusive Opportunities: Since PMS caters to HNIs, it often provides access to investment opportunities that may not be available to average retail investors, including pre-IPO shares, private equity, and international markets.
  6. Dedicated Portfolio Manager: PMS clients often have direct access to their portfolio manager, allowing them to discuss their portfolio, understand investment decisions, and get personalized advice.
  7. Tax Efficiency: In PMS, each buy and sell transaction is specific to an investor, providing the potential for more tax-efficient management of capital gains.

The tax liability of a PMS investor would remain the same as if the investor is accessing the capital market directly. However, the investor should consult his tax advisor for the same. The Portfolio Manager ideally provides audited statement of accounts at the end of the financial year to aid the investor in assessing his/ her tax liabilities.