CNN Central News & Network–ITDC India Epress/ITDC News Bhopal: The Bajaj Finserv Consumption Fund aims to tap into the exciting trends transforming the consumption landscape in India. With a systematic approach called the InQuBe philosophy, this fund employs a detailed stock selection process that aims to optimize returns for investors. Let’s break down how this process works and what drives their investment decisions.
Before diving into the stock selection strategies, it’s essential to understand the fund’s scope. The total stock universe considered by the Bajaj Finserv Consumption Fund consists of around 1,100 companies. Out of these, the fund narrows down its focus to a megatrend universe of 340 to 380 stocks. From this pool, it identifies 110 to 130 stocks that specifically fit the consumption theme. Ultimately, the portfolio will consist of approximately 25 to 50 carefully selected stocks by using the inhouse InQuBe philosophy.
The InQuBe Philosophy
The InQuBe philosophy encompasses three critical strategies: Information Edge, Analytical Edge, and Behavioural Edge. Each of these components plays a significant role in shaping the fund’s investment decisions.
Information Edge
The first strategy, Information Edge, focuses on gathering valuable insights before they become common knowledge. The investment team works to collect and analyze information about the economy, specific businesses, and broader market trends. By staying ahead of the curve, the fund aims to make informed investment decisions that can lead to optimal performance.
For example, if the fund becomes aware of a company launching an innovative product before the general market does, it can take advantage of this early insight. Investing early in such companies can lead to substantial gains as the market begins to recognize the potential of those products.
Analytical Edge
The second component of the InQuBe philosophy is the Analytical Edge. Even without exclusive information, the fund can still excel through robust analytical methods. The investment team utilizes advanced tools, including models and algorithms, to predict market trends and stock performance
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