About
NAFA Capital Advisors, the parent company of NAFA Asset Managers, is an India-focused, integrated financial services platform with activities in investment management and corporate advisory.
NAFA Capital Advisors specialises in providing a variety of financial services, advisory services and asset management services across a broad array of asset classes under a single umbrella. It offers discretionary as well as non-discretionary portfolio management services.
Key staff
Ameya Prabhu- Managing Director at NAFA Capital Advisors
Balaji Vaidyanath – CEO
Investment Philosophy
Strategic Capital Allocation: We employ effective capital allocation & utilize risk mitigation strategies to generate risk adjusted returns in your portfolio.
Focused on Growth Assets:We are focused on a growing asset class in India – equities by investing in quality companies in India with high growth potential.
Risk and Return Optimization:We apply effective investment strategies coupled with a well-defined risk mitigation mechanism to maximize value for our investors.
Investment process
Our Scheme endeavors to generate relatively outsize returns by creating Benchmark Agnostic Concentrated portfolios of Quality stocks, based on fundamental research driven Bottom Up stock picking.
Stock selection
Our Stock Selection is based on a rigorous Bottom-up Investing Process driven by Fundamental Research and overlaid with a Top-Down macro view. We screen stocks against a Quantitative and Qualitative internal framework. In Quantitative screening, we use metrics like High Growth, High ROCE, High Cash Flow Conversion and Low Leverage. In Quantitative screening, we assess companies based on their Corporate Governance practices, Promoter Track Record and Promoter Share Pledges.
Finally, we use a Valuation Process that includes a blend of science and art, to shortlist stocks that offer not only a high return potential but also a reasonable margin of safety.
Portfolio construction
Of the total Scheme corpus, not more than 10% will be invested in a single stock and not more than 35% will be invested in a single sector at the time of initiation.
Scheme performance will be evaluated against a pre-identified Benchmark Index. An appropriate Benchmark will be selected that is consistent with the Investment Style and Scheme Category in terms of Market Capitalization i.e. either a Large Cap, Mid Cap, Small Cap or Multi Cap specific Benchmark Index.
Ideal investment horizon is at least 3 to 5 years.
We follow a concentrated portfolio approach to generate comparatively higher returns but which can also lead to higher risk and volatility in returns. We follow a Buy and Hold approach that may underperform the Benchmark in the short term or during times of higher volatility. Some Market Capitalization based categories may underperform the broader market in the short to medium term.
Funds managed
| FUND NAME | ASSET CLASS | License |
| NAFA Emerging Bluechip Portfolio | Equity | PMS |
| NAFA Wealth Builder Portfolio | Equity | PMS |
| NAFA Small Cap Portfolio | Equity | PMS |
| NAFA Equity One Portfolio | Equity | PMS |
| NAFA Pharma Portfolio | Equity | PMS |
| NAFA Amalabh Portfolio | Equity | PMS |
NAFA Emerging Blue chip Portfolio
• Type: A focussed equity strategy with a Mid & Small cap bias.
• Objective: To achieve higher returns through investment in high potential Mid & Small Cap companies.
• Benchmark: S&P BSE Midcap Index.
• Horizon: Min of 3-6 years.
OBJECTIVE & STRATEGY
• Invest primarily in Mid & Small Cap businesses with visionary management having potential to scale up and grow exponentially over a 5 to 7 year period and to generate higher risk-adjusted returns. Follow a framework with emphasis on investing in growth stocks with quality management, high ROE and low leverage.
• Seek to achieve outperformance by investing in emerging market leaders and take active sector, stock and cash calls.
• Concentrated portfolio of 20-25 stocks to avoid diluting returns through over-diversification.
• Follow a framework with emphasis on investing in growth stocks with quality management, high ROE and low leverage.
NAFA Wealth Builder Portfolio
• Type: A focussed equity strategy with a large cap bias.
• Objective: To achieve capital appreciation through investment in high conviction Large Cap companies.
• Benchmark: S&P BSE 500 Index.
• Horizon: Min of 5-7 years.
OBJECTIVE & STRATEGY
• Achieve capital appreciation by investing primarily in high conviction stocks with a large cap bias which will benefit from the improving Indian economic landscape.
• Seeks to achieve outperformance by investing in blue chip stocks and take active sector, stock and cash calls.
• A concentrated portfolio of 20-25 stocks to avoid diluting returns through over-diversification.
• Follow a framework with emphasis on investing in growth stocks with superior return ratios, low leverage and scope for increased operating leverage.
NAFA Small Cap Portfolio
• Type: A focussed equity strategy with a Small cap bias.
• Objective: To achieve higher returns through investment in high potential Small cap companies.
• Benchmark: S&P BSE 500 Index.
• Horizon: Min of 3-6 years.
OBJECTIVE & STRATEGY
• Invest primarily in Small Cap companies with visionary management having potential to scale up and grow exponentially over a 5 to 7 year period and to generate higher risk-adjusted returns.
• Seeks to achieve outperformance by investing in emerging market leaders and take active sector, stock and cash calls.
• A concentrated portfolio of 20-25 stocks to avoid diluting returns through over-diversification.
• Follow a framework with emphasis on investing in growth stocks with quality management, high ROE and low leverage.
NAFA Equity One Portfolio
• Type: A focussed equity strategy with a Mid cap bias.
• Objective: To achieve absolute uncorrelated returns through investments in mispriced stocks.
• Benchmark: S&P BSE 500 Index.
• Horizon: 1 year.
OBJECTIVE & STRATEGY
• Investing primarily in quality Mid Cap businesses and take advantage of valuation mismatches.
• Seeks to achieve outperformance by investing in mispriced stocks and taking active sector, stock and cash calls.
• A concentrated portfolio of 25-30 stocks to avoid diluting returns through over-diversification.
• Follow a framework with emphasis on investing in growth stocks with quality management, high ROE and low leverage.
NAFA Pharma Portfolio
• Type: An equity strategy investing in a diversified portfolio of Healthcare related companies.
• Objective: To achieve medium to long term wealth creation through concentrated equity investments in high quality growth stocks.
• Benchmark: S&P BSE Healthcare Index.
• Horizon: Min of 3-5 years.
OBJECTIVE & STRATEGY
• Investing in equities in the healthcare sector across market capitalizations, with an optimal mix of large and mid-cap stocks for superior risk adjusted returns.
• Seeks to achieve outperformance by investing in a diverse set of healthcare companies and take active stock and cash calls.
• A concentrated portfolio of 20-30 stocks to avoid diluting returns through over-diversification.
• Follow a framework with emphasis on investing in companies with quality management, business moat, high growth prospects and reasonable valuations.
NAFA Amalabh Portfolio
• Type: A focussed equity strategy investing primarily in Large and Mid-cap companies.
• Objective: To achieve medium to long term wealth creation through concentrated equity investments in high quality growth stocks.
• Benchmark: S&P BSE 500 Index.
• Horizon: Min of 3-5 years.
OBJECTIVE & STRATEGY
• The strategy aims at investing in equities across sectors and market capitalizations, with an optimal mix of Large and Mid-cap stocks for superior risk adjusted returns.
• Seeks to achieve outperformance by investing in market leaders and take active sector, stock and cash calls.
• A concentrated portfolio of 20-30 stocks to avoid diluting returns through over-diversification
• Follow a framework with emphasis on investing in companies with quality management, business moat, high growth prospects and reasonable valuations.
Analyst questions
- What is your total AUM?
- What is your target alpha for each of your portfolios?
- What is your CAGR?
- What are the limitations of each portfolio?
- Have you ever been able to meet your benchmark? How?
- How much is the hurdle rate?
- How much is the exit fee charged?
- What are the unique features you provide which differentiate you from others?
Prepared by – Praseena Padmakaran
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