About
Emkay Investment Managers Ltd. is a SEBI registered portfolio management and investment advisory company incorporated in 2010. It is the asset management part of Emkay Global Financial Services Ltd. Emkay Portfolio Management Services expertise ranges across the span of the Indian equities market, from blue-chip large cap funds and well performing mid-cap funds to emerging small caps. It currently manages assets of over Rs. 550 crores.
SEBI Registration No. INP000004458
Key staff
Board of Directors: Mr. G.C. Vasudeo, Mr. Rajesh Sharma, Mr. Saket Agrawal
Fund Managers: Mr. Kashyap Javeri, Mr. Sachin Shah
Portfolio Manager: Mr. Raj Gala
Funds managed
| Fund name | Benchmark | Segment |
| Emkay Capital Builder | S&P CNX 500 | Multi Cap |
| Emkay Classic (for NRI only) | S&P CNX 500 | – |
| Emkay Empower multi manager | S&P CNX 500 | – |
| Emkay Platinum | S&P CNX 500 | – |
| Emkay Pearls | S&P CNX 500 | Mid Cap |
| Emkay Crystal | S&P CNX 500 | – |
| Emkay Pure I | S&P CNX 500 | – |
| Emkay Multi Cap Capital Builder | S&P CNX 500 | – |
| Emkay LEAD | NIFTY 200 | Large and Mid-Cap |
| One Emkay | Crisil Hybrid | – |
| Emkay’s 12 | NIFTY 50 | Large Cap |
| Emkay Gems | NIFTY Midcap 150 | Mid Cap |
Investment philosophy
The primary objective of the funds is to achieve long term capital appreciation by investing across segments from large cap to small cap. The managers aim to have a well-diversified portfolio in which stocks are chosen after doing heavy research and reasonable valuations.
Investment style
Emkay uses the style of value and growth style of investing for all its funds except for one – “One Emkay”. One Emkay investment approach differs strategy wise among aggressive, moderate and conservative.
Investment process
Half of the funds and products offered follow the classic alpha strategy and the other half follows the smart alpha strategy. Classic alpha is the bottom-up investment philosophy and smart alpha involves strategy to mitigate selection and allocation biases.
Under Classical Alpha, the fund manager considers the microeconomic factors first and foremost. These factors include a company’s overall financial health, analysis of financial statements, the products and services offered, supply and demand, and other individual indicators of corporate performance over time. The classical alpha approach is further reinforced and distinguished by E-Qual Risk (Emkay’s proprietary module used to compare companies on a series of qualitative and quantitative aspects that helps them avoid risky stocks from becoming a part of their portfolios).
Details about some key products:
- Emkay Capital Builder: This portfolio is the flagship product of Emkay Investment and is seasoned for large and long term investors who want to build capital for 2+ – 5+ years. This is a well diversified portfolio with equity based investments across all capitazations.
- Emkay Empower multi manager: This is a customized portfolio of equity and debt mutual funds based on an individual’s appetite of risk.
- Emkay’s 12 strategy: Under this 12 top stocks are picked across all the sectors. Investments are made in companies on the basis of value migration and consumption.
- Emkay Gems: 15-25 stocks are picked from mid cap companies. The selection of companies is done on the basis of their ROCE and Debt Equity ratio.
- Emkay Lead: A pure bottom up, buy and hold large and mid cap is adopted and top 15 stocks are selected which are set to benefit from value migration and consumption.
- Emkay Pearls: Maximum of 35 stocks per portfolio is the limit. Mid cap and small cap companies are considered for investment under this strategy..
Charges
| Management Fees | As per commission model |
| Upfront Fees | 0.75% – 1.25% of Asset Value |
| Brokerage Charges | 0.007% – 0.011% of Total Transaction Value |
| Custodian Charges | 0.17% – 0.27% of Asset Value |
| Depository Charges | 0.10% – 0.18% of Asset Value |
| Exit Load – within 12 months | 0.7% – 1.0% of Withdrawal Value |
| Exit Load – post 12 months | Free |
Analyst questions
- Why does the company follow two kinds of approaches (i.e., classic alpha and smart alpha) instead of one?
- How does it decide which approach to follow among the two for every fund?
- Why is a joint index (S&P CNX) considered as a benchmark for the majority of the funds instead of a single one?
- Why a separate fund for NRIs is created?
- More details on the E-qual Risk analysis strategy adopted by the company is required.
By: Rakshit Murjani
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