Karma Capital Strengthens Product Lineup with Introduction of New Benchmark Aware Strategy, Magnolia
Aug 09, 2023
BusinessWire India
Mumbai (Maharashtra) [India], August 9:
, a leading equity-led portfolio management services firm, has expanded its product lineup by introducing a large-cap investment strategy, Karma Capital Magnolia (KCM). The offering seeks to provide superior risk-adjusted returns over a period of 3 years and above, across market cycles.
This strategy will allocate nearly 70%-100% funds in large-cap with the balance of 0%-30% in small and mid-cap companies. It will best suit the investment needs of younger, more ambitious HNIs who prefer evolved counsel from investors who’ve witnessed the test of many economic cycles. Investors who have been investing in MFs for some time and now want to migrate to PMS. The minimum ticket size of the strategy would be 50 lakhs.
Magnolia aims to capture India’s potential by identifying investment opportunities through bottom-up research and forward-looking growth opportunities available at attractive rates. The performance attributes for Magnolia will be benchmarked against BSE 500 TRI. Karma Capital’s investment team will deploy its proprietary “Kick the tire” approach to evaluate specific characteristics and attributes of potential stocks.
Rajnish Girdhar, CEO at Karma Capital said, "Markets in India have evolved, valuations have gone up, and so, budding investors are seeking to multiply their wealth in a concentrated portfolio. They are aiming to derive favorable returns in the mid and long term. We believe that India is a domestically driven economy where consumer preferences will keep changing dramatically in the coming times. One-size-fits-all approach may not derive best suitable results for all investors. We’re currently present in 4 key cities and are now ready to expand further in domestic markets to create wealth for investors through Magnolia."
Speaking on the new offering, Ekta Mehta, Portfolio Manager at Karma Capital said, "At Karma, we deploy an early-cycle investing strategy across all our products. The core principle is to identify firms poised for growth and are available at a reasonable price. Magnolia is designed to be a concentrated basket of 20-25 stocks backed with strong research, leading a portfolio having high active share. The strategy allows us to cater to a differentiated set of investors seeking greater returns in the long run."
Karma Capital has built a strong track record of 17 years by following its independent thinking, early cycle, forward looking approach across all their offerings. Last year, the firm introduced an AIF, also known as the Lotus strategy in addition to its flagship PMS offering, Karma Wealth Builder.
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