Unique Multi-Asset Strategy
To optimise the return on investment and reduce the risk, we have a uniquely structured investment strategy. This enables investors to have a well-diversified portfolio in various asset classes like Equity & Mutual Funds, Start-ups & SMEs and Real Estate, all at the same time.
The main criterion for investing in a start-up is its idea. If it’s disruptive, we back it; as we aren’t keen on ‘me too’ ideas. Our primary focus is on tech based start-ups. The other factors which go in their favour are a strong management team and a scalable business model. We participate in Series A or above and post revenue start-ups, which have been in operation for a minimum of 1 year and are backed up renowned investors.
Investment in SMEs begins with in-depth research and fundamental assessment of listed companies. How have they utilised their IPO funds and who was their IPO merchant banker are also considered.
Our investment advisors evaluate and identify pre-IPO opportunities of key SME companies. We even undertake a market review of the promoters, and the product/service offering of the SME. After considering all the factors, studying the SME’s sales and expansion plans for the next 5 years and ensuring that there is at least one institutional investor, the decision is taken. However, not more than 10% of the funds allocated for SMEs are put in one stock.
Equity & Mutual Funds
Our strategic approach to Equity and Mutual Fund investments isn’t conventional. Firstly, we don’t allow human intervention or bias while creating and rebalancing a portfolio. Artificial Intelligence chooses companies with the best financial trend based on short term (Financial Trend and Price Momentum) and long term (Quality and Valuation) drivers. These drivers have been formulated by combining methodologies used by successful investors and comprehensive data analysis. We allow human intervention only in creating, back testing and improving the models that identify the right stocks and portfolio.
Secondly, we don’t follow the Growth, Value pattern of investment. Moreover, only companies that are within the BSE 500 benchmark are considered, and the Average Traded Volume, Market Capitalization, Quality and Valuation filters are applied. The liquidity threshold is that the average traded value should be at least 5 times the investment amount or 15 cr, whichever is higher.
Maximum number of holding is 20, with limits of up to 30% in any one sector and up to 10% in a single stock. The holding allocation is as under:
• Mega Cap (>60,000 cr): Up to 100%
• Large Cap (20,000 cr to 60,000 cr): Up to 50%
• Mid Cap (5,000 cr to 20,000 cr): Up to 50%
• Small/Micro Cap (Less than 5,000 cr): Up to 25%
Debt Instruments – NCDs For NBFCs And Real Estate
With regards to investments in debt instruments and real estate, we have strict parameters that need to be met. We first thoroughly research and assess the company’s profile, their business model, fund utilisation, repayment capability, legal framework to cover the investment, market sentiments, credit history and underlying assets. At the same time, we ensure that due diligence has been observed by the promoters, investment is through a registered trust, the collateral in case of real investment is 1.75% of the investment amount and the specific timeframe to exit has been clearly defined.
Mitigate risk. Maximise returns.
National as well as global economic and political decisions, buoyancy, unrest, unpredictable weather – countless, uncontrollable factors upset the market. And with every fluctuation, the stress level of investors witnesses its own highs and lows.
At Credent Asset Management, risk is uniquely and expertly managed. We employ a one-of-its-kind investment strategy that cleverly rests money in not one or two, but 5 different asset classes, i.e. Equities, Mutual Funds, SMEs & Start-ups and Real Estate.
Invest in not just a few select stocks, but from the best of the entire equity spectrum.
We don’t believe in having a pre-researched, verified and shortlisted selection of companies in which money is rotated. Instead, we use Artificial Intelligence to identify the best companies to invest in at a particular point of time, which widens the horizon of profitable investments.
Gain from the current push to young and promising companies.
India’s current environment is highly fertile for the entrepreneurial ambition to thrive, with a lot of economic backing for SMEs & Start Ups. We identify such promising businesses using technological and human intelligence and invest in them before their value peaks. This increases the probability of investors getting better returns for a longer time.
Investment in real estate without owning the property is a reality.
While most people wish to and do invest in real estate, the astronomical prices and hassle of physical property ownership prove to be a deterrent. In most cases, either the location or the choice of the real estate asset is compromised. We eliminate the need of physical property ownership plus ensure higher returns than the prevalent market rates, thus making the investment far more accessible and gainful.