Roha Emerging Companies Fund
It is a Category 3 Alternate Investment Fund (AIF) approved & licensed by SEBI. The objective of this fund is to give long term capital appreciation by investing in the equity of quality and growth-oriented companies/business, run by competent management and available at attractive valuations. AIF aims to generate consistent returns over the long term to get the real benefit of the power of compounding.
Focus is on the superior quality of business in terms of cash flow capability, capital efficiency, enduring competitive advantage, entry barriers and its ability to scale up to get the real benefit of the power of compounding.
The investment will be made across the market cap and being company size agnostic though the specific focus will be on small and mid-cap stocks. The alpha or superior returns over time is aimed through following Investment process
- Bottom-up stock selection approach
- Early mover advantage through mid/small companies
- Opportunity in weak market sentiment due to temporary mispricing
- Investing in Emerging profitable businesses in an innovative dynamic world not available in large caps
- Investing in higher growth companies vs large caps
- Under researched opportunity providing attractive valuations
Scheme Name: Roha Emerging Companies Fund
Scheme Type: Close-ended AIF
Investment Horizon: Medium to Long Term (3-5 Years)
For Whom: Investors who like to invest with a long-term wealth creation view
Asset Allocation:
Asset Allocation of the Proposed Scheme* Equity Securities across small, mid and large market cap companies with long term potential – 100%
Scheme Overview: In order to provide long term capital appreciation, the Fund Manager will invest based on a set of well-established principles that emphasize the concept of sustainable earnings growth, cash flows and high returns on investment for selection of companies. In order to reduce the risk of volatility, the Scheme will diversify across major industries and economic sectors.
Roha Emerging Companies Fund: A close-ended fund focused on mid and small-cap listed Indian companies. Diversified across sectors & companies poised to benefit from India’s multi-year structural growth theme. Laying quality stress on management, business, accounting & governance with specific emphasis on the margin of safety (valuations).
Investment Objective:
- Seek to create wealth over the long term by investing in the equity of sustainable growth businesses.
- Focus on the superior quality of business in terms of cash flow capability, capital efficiency, enduring competitive advantage, entry barriers and its ability to scale up to get the real benefit of the power of compounding.
Investment Universe: Investment across market cap and size agnostic through a specific focus on small and mid-cap stocks.
Why mid and small-caps?
- Early mover advantage
- Bottom-up stock selection approach
- Alpha opportunity with superior stock picking
- Emerging business in an innovative dynamic world not in large caps
- Higher growth opportunity vs large caps
- Under researched providing attractive valuations
- A wide spectrum of choice in investing
Risk Control:
- Stock concentration risk – 20%
- Sector concentration risk – 25%
Compound interest is the eighth wonder of the world. He who understands it earns it. He who doesn’t pays it’ Albert Einstein