port

Wright Factor Fund

A unique and highly reliable multi factor investing portfolio strategy that has performed well for
4 + years for our retail investors. The Wright Factor Fund is a top performing actively managed PMS fund.

Get Started   port
Download Presentation Download Factsheet
port-img-banner

Live Performance

As of date: Feb. 29, 2024

Inception date: Aug. 21, 2023

Since inception One month Three months Six months One year Aum in crore
Wright Factor Fund 48.60 0.95 26.18 45.76 -- 56.67
BSE 500 Total Return Index 19.78 1.66 11.93 18.86 -- --

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:

Wright Factor Fund

BSE 500 TRI

Backtested Performance Comparison

Investment Objective

The primary objective of the Wright Factor Fund is to provide long-term capital appreciation by strategically investing in a portfolio of Indian equities. Our fund seeks to consistently outperform the benchmark through a disciplined, factor-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 Multi-Factor Investment Process

The Wright Factor Fund employs a disciplined, quantitative multi-factor investment process. This approach leverages the power of 10 factor groups like value, momentum, growth, and quality. These factors are carefully selected for their proven contribution to portfolio returns over time.

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

We complement this process with monthly 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 equity factors and bonds, gold 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 Factor Fund provides several key advantages:

  1. Scientific, Factor-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 Factor 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: Feb. 29, 2024

Benchmark: BSE 500 TRI

Top Sector Exposures

Sectors Exposures
Finance 7%
Refineries 7%
Agriculture 6%
FMCG 6%

Key Metrics

Metrics Exposures
Current Average PE Ratio 29.8
Current Large Caps 77%
Current Mid Cap 13%
Current Small Cap 6%

Meet the fund manager

Sonam Srivastava

Founder & Portfolio Manager

13 years of experience
4 years of advisory experience at Wright
Portfolio Management & Algorithmic Trading at HSBC, Edelweiss

Education

Masters in Financial Engineering, Worldquant University
Bachelor of Technology, IIT Kanpur

Read Full Bio

Fee Details

Flat fee

1.5 %

Performance Based

15 % (over high watermark)

Minimum Investment

50 Lacs

Entry and Exit Load

0

Calculate PMS Fees

Make the best out of the Wright PMS and choose the most suitable fee.

1st Quarter

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Quarterly Returns (%):

Benchmark Returns (%):

Initial Capital:

Management Fee Rate (%):

Performance Fee Rate (%):

PMS Allocation Calculator

Discover the right portfolio mix by trying different combinations with our PMS Allocation Calculator.

FAQs

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.

All About

Equity Portfolio Management

What is Equity Portfolio Management?

The goal of virtually all investment analysis is to make an investment decision or advise someone to create one. Analyzing equities and managing equity portfolios are closely linked. However, in finance—as in many professions—the real-world application of theoretical or academic concepts can involve thinking beyond one's speciality and training. Running a group of stock portfolios involves attention to detail, software skills, and administrative efficiency. If you want to make equity investments, you will require a deep understanding of financial markets and investment principles and strong analytical and quantitative skills. Also, Equity portfolio managers' decisions may influence various investment strategies, including value investing, growth investing, or index investing. In short, you need to know the mechanics of equity portfolio management to create and handle a group of distinct portfolios, ensuring they perform well and as a homogeneous element. Recommendations for equity investment strategies are based on 3 factors: ...

  • Your risk profile- are you an aggressive, conservative, or moderate investor?
  • Your investment goals & preferences- are you looking for a long-term or short-term investment? How long you're willing to invest?
  • Your thematic preferences- are you specifically just looking for momentum investing or value investing?

In short, you need to know the mechanics of equity portfolio management to create and handle a group of distinct portfolios, ensuring they perform well and as a homogeneous element. Recommendation of equity investment strategies are based on 3 factors:

  • Your risk profile- are you an aggressive, conservative or moderate investor?
  • Your investment goals & preferences- are you looking for a long term or short terminvestment? How long you're willing to invest?
  • Your thematic preferences- are you specifically just looking for momentum investing or value investing?

    • How do Equity Portfolios Work?

    Equity portfolios are collections of stocks that are managed to achieve a specific investment objective. These portfolios typically consist of a diversified mix of stocks from different industries and sectors, intending to reduce risk and increase returns. The equity portfolio return is a function of several investment factors. Factors are indicators that can help describe stock returns. When you try to get into the details of the factors influencing market returns, you’ll find that they are intuitive to understand.

    Factors are of two main types - macroeconomic and style factors. Macroeconomic factors are broad-based, like the GDP growth rate, inflation, unemployment, etc. Style factors are more nuanced and are a quantitative way to describe strategies for outperformance. Each of these style factors would have proponents among quantitative investors and all types of investors.

  • Value: This factor aims to capture the premium associated with stocks with low prices relative to their fundamental value.
  • Size: This factor says that small-cap stocks exhibit greater returns than portfolios with just large-cap stocks.
  • Momentum: This factor bets on the outperformance of stocks that have historically exhibited strong returns.
  • Quality: Stocks with strong corporate governance and consistent earnings with low debt are called quality stocks that tend to outperform.
  • Volatility: This factor bets on the phenomenon that stocks with low volatility earn greater risk-adjusted returns than highly volatile assets.

    • How Do Equity Portfolios Earn?

    Dividend income and capital growth are the two main ways that equity portfolios may make money.

    When the value of the stocks in the portfolio rises over time, this is called capital appreciation. The portfolio's value rises along with the price of the stocks, generating a profit when the equities are sold. If the equities are kept for a year or more, this profit can be realized as a capital gain, resulting in beneficial tax treatment.

    Another source of income for equities investments is dividend income. A profitable business may pay dividends to its shareholders in order to share some of the money with them. These dividends, typically distributed quarterly, can give investors a steady source of income.

    To increase returns, you may employ a variety of investment techniques, including growth investing, value investing, and dividend investing. Also, have a good understanding of a company’s equity valuation.

    Who Should Invest?

    Anyone looking to increase their wealth over the long term and with some extra money should consider investing. You can achieve your financial objectives more quickly by investing than by merely saving because it allows you to make a return on your money via the power of compounding.

    Nevertheless, investing has risks, so you must clearly understand your financial situation, risk appetite, and investment goals before making a purchase. Additionally, if you don't know where to begin, do your research and ask a financial expert for guidance.

    Here are some benefits you will get when investing in equities:

  • Potential for High Returns: Equities have higher returns than most asset classes. While there is no guarantee of future returns, investing in equities can give you the potential for significant wealth creation over time.
  • Diversification: Investing in equities can help diversify an investment portfolio, reducing overall risk.When you invest in variety of stocks across different sectors and geographies, you can spread your risk and reduce the impact of any one company or sector's performance on their overall portfolio.
  • Ownership: By purchasing shares of a company, you get a portion of its ownership. This may increase your participation and sense of pride in the business while also giving your the chance to cast votes on crucial topics at yearly shareholder meetings.
  • Liquidity: Equities are highly liquid, which means you can buy and sell a stock anytime in the stock market. This makes it simple to modify your portfolios as necessary and rapidly access your money whenever you want.

    • Types of Equity Investments

    Common shares:

    Common shares are the most common type of equity investment; when you buy a company's equity (a.k.a shares), you become part owner of the company (called shareholder). You may purchase these equities from NSE (National Stock Exchange) and BSE (Bombay Stock Exchange). You can make profits as a company grows. Although investing in shares carries a high risk, it also has significant potential returns.

  • Equity Mutual Fund Investments
    In Equity Mutual Fund Investments, a group of people invests their money together to buy shares in many different companies. A fund manager then manages investors' money and further invests in shares, bonds, etc. Therefore, Investing in mutual funds is a good option for people with little trading experience and free time. Based on market size, equity mutual funds can be categorized as large, mid, and small. Mutual funds have lower risk than other investment options. Also, you can invest in mutual funds one-time or through SIPs (Systematic Investment Plans) from various apps like Zerodha, Groww, etc.
  • Equity futures
    Equity futures are basically contracts that allow you to buy or sell company shares at a specific price AND time in the future. They generally have a limited duration of 3 months. The last Thursday of the third month is often the settlement day for equity futures.
  • Arbitrage funds
    Arbitrage refers to simultaneously buying and selling the same stock on multiple exchanges to benefit from price difference opportunities.

    • Preferred share:

    A preferred share is like a common share, but you can get dividends annually. Also, it comes with a benefit like you will be get paid first if the company goes bankrupt.

  • Private Equity fund
    A private equity fund is a specific kind of investment fund that raises money from institutional investors or high-net-worth individuals to invest in privately owned businesses.
    A limited number of people often own private companies, do not have their shares listed on stock exchanges, and are not accessible to ordinary investors. Private equity funds invest in these privately held businesses to create profits through capital appreciation or operational improvements.
  • Alternative Investment Funds
    Investments made through alternative investment funds are made in assets other than stocks and bonds, such as real estate or small businesses. Unlike stocks or bonds, which are made up of several pools of investment funds that invest largely in hedge funds, venture capital, managed futures, private equity, etc., These investments are less common or easy to buy than stocks or bonds.

    • What is equity analysis, and why is it important in the world of finance?

    Equity analysis assesses a company's financial and operational performance to determine the stock's worth. This research examines the company's financial accounts, including its income statement, balance sheet, statement of shareholder's equity and cash flow statement, to comprehend its profitability, revenue growth, debt levels, and other economic parameters.

    In addition, management quality, industry competitiveness, and growth potential are all considered part of the equity research process. To assess a company's competitive position, stock analysts may view its market share, product offers, pricing policy, and clientele.

    Equity research aims to ascertain the genuine market value of a company's shares based on its operational and financial performance and its potential for future growth. This can help investors decide whether to buy, hold, or sell a stock based on its current price relative to its intrinsic value.

    Why is Equity analysis important?

    Since many factors directly affect equity markets and hence affect the stock price. As a result, doing equity research to gain more profound knowledge can help you better grasp equity market swings and progress toward your financial goals. Therefore, equity research is of utmost importance for an investor.

  • It helps you make informed investment decisions.
  • It is also essential for equity portfolio management and allows you mindfully diversify your portfolio.

    • It also helps companies improve their performance and increase profitability.

    Read more