Funds managed
| Fund Name | Asset Class | License |
| Multicap Portfolio | Equity | PMS |
| Bluechip Portfolio | Equity | PMS |
| Freedom ETF Portfolio | Equity ETF | PMS |
| Dynamic Stock Allocation Portfolio- Aggressive | Equity/Debt | PMS |
| Dynamic Stock Allocation Portfolio- Conservative | Equity/Debt | PMS |
| Dynamic ETF Allocation Portfolio- Aggressive | Equity/Debt | PMS |
| Dynamic ETF Allocation Portfolio- Conservative | Equity/Debt | PMS |
About
NJ Asset Management Private Limited has a strong lineage, as a part of the NJ Group. NJ India Invest Private Limited (NJ), the flagship company of the group, was started in 1994 to cater to the growing needs in the financial services industry.
NJ today is one of the leading distributors of investment products and providers of financial services in India. It offers discretionary Portfolio Management Services (PMS) to clients.
SEBI PMS Registration No: INP000003518
AUM: INR 1069 crores as of 31 March 2020
Key staff
Neeraj Choksi: Founder and MD of NJ Asset Management Private Limited with 25 years of work experience in providing guidance and shaping the future of the asset management business.
Rajiv Shastri: Director & Chief Executive Officer with 25 years of experience in roles like Fixed Income Fund Management. Macro – economic Analysis, Quantitative Investments and Business Strategy.
Investment Philosophy (for firm)
NJAMPL has been pioneering the mechanism of “Rules Based Investing” as against “Active Management”.
Rules based investing is a process oriented way of fund management wherein:
- The selection of the underlying is based on a pre-defined set of rules.
- The fund manager bias has been eliminated.
- The rules help the portfolio remain “true to label” at all times.
- The rules based models are able to be credibly back tested for their performance and volatility in various scenarios as there is no human intervention.
NJAMPL believes that different types of clients have disparate risk appetites and investment horizons, so it’s important to provide a wide range of products on both Pure Equity and Dynamic Asset Allocation sides.
Multicap Portfolio
Objective and Investment Approach:
The Portfolio aims to deliver capital appreciation in the long term from a diversified portfolio that predominantly invests in equity and equity related instruments across various market capitalization.
Investment approach summary:
- Rules based stock selection
- Focus on companies with superior momentum and volatility factors
- Flexible allocation to invest across market capitalisation
- Portfolio would be reviewed for rebalancing on a quarterly basis
Portfolio Inception Date: 2 Apr 2016
Performance since inception: 8.14%
Portfolio Composition: 25-35 stocks.
Benchmark: NIFTY 500 TRI
Minimum Investment: Rs 50 Lacs
Investment Management Fees:
Investment < 2 Crore: upto 2.5%
Investment ≥ 2 Crore to < 5 Crores: upto 2%
Investment ≥ 5 Crore to < 10 Crore: upto 1.5%
Investment ≥ 10 Crore: upto 1.2%
Exit fees- 1% if redeemed within 365 days from date of investments
Bluechip Portfolio
Objective and Investment Approach:
The Portfolio aims to deliver capital appreciation in the long term from a diversified portfolio that predominantly invests in equity and equity related instruments across various market capitalization
Investment approach summary:
- Rules based stock selection
- Focus on companies with superior momentum and volatility factors
- Portfolio would be reviewed for rebalancing on a quarterly basis
Portfolio Inception Date: 12 Mar 2018
Performance since inception: 14.92%
Portfolio Composition: 25-35 stocks.
Benchmark: NIFTY 500 TRI
Minimum Investment: Rs 50 Lacs
Investment Management Fees:
Investment < 2 Crore: upto 2.5%
Investment ≥ 2 Crore to < 5 Crores: upto 2%
Investment ≥ 5 Crore to < 10 Crore: upto 1.5%
Investment ≥ 10 Crore: upto 1.2%
Exit fees- 1% if redeemed within 365 days from date of investments
Freedom ETF Portfolio
Objective and Investment Approach:
The main objective is to generate capital appreciation in the long term through investments in Equity oriented Exchange Traded Funds (ETFs) and Index funds which have underlying as Indian and Global indices
Investment Approach Summary:
- Rules based selection
- Focus on investing in Equity oriented ETFs tracking Indian and Global Indices
- Currently the portfolio invests in ETFs that are tracking the following indices :
- NIFTY 50
- NIFTY NEXT 50
- NIFTY MIDCAP 150
- NASDAQ 100
- Portfolio would be reviewed for re-balancing on a yearly basis unless there is a large change in the allocation by virtue of the index performance
Portfolio Inception Date: 9 Mar 2018
Performance since inception: 8.36%
Portfolio Composition: The Portfolio would consist of a basket of ETFs which would be on a combination of Indian and Global Indices.
Benchmark: NIFTY 500 TRI
Minimum Investment: Rs 50 Lacs
Investment Management Fees:
Investment < 2 Crore: upto 1.0%
Investment ≥ 2 Crore to < 10 Crores: upto 0.5%
Investment ≥ 10 Crore: upto 0.3%
Exit fees- 1% if redeemed within 365 days from date of investments
Dynamic Stock Allocation Portfolio- Aggressive
Objective and Investment Approach:
The investment objective is to provide capital appreciation in medium term with relatively lower volatility through a dynamically managed portfolio of equity and debt securities
Investment Approach Summary:
- Rule based asset allocation based on in-house proprietary model on the basis of valuations of equity market, interest rate and other factors
- On equity side, the methodology would be similar to our Bluechip portfolio
- On debt side, selection of the securities is based on lower credit risk and lower volatility
- Asset allocation rebalancing will be reviewed on a quarterly basis and security rebalancing will be reviewed on a half yearly basis.
Portfolio Inception Date: 2 Apr 2016
Performance since inception: 9.12%
Portfolio Composition:
- Equity and equity related securities (0-100%)
- Debt oriented mutual funds, Debt ETFs, Liquid funds and Arbitrage funds (0-100%)
Benchmark: NIFTY 500 TRI
Minimum Investment: Rs 50 Lacs
Investment Management Fees:
Investment < 2 Crore: upto 2.5%
Investment ≥ 2 Crore to < 5 Crores: upto 2%
Investment ≥ 5 Crore to < 10 Crore: upto 1.5%
Investment ≥ 10 Crore: upto 1.2%
Exit fees- 1% if redeemed within 365 days from date of investments
Dynamic Stock Allocation Portfolio- Conservative
Objective and Investment Approach:
The investment objective is to provide capital appreciation in medium term with relatively lower volatility through a dynamically managed portfolio of equity and debt securities
Investment Approach Summary:
- Rule based asset allocation based on in-house proprietary model on the basis of valuations of equity market, interest rate and other factors
- On equity side, the methodology would be similar to our Bluechip portfolio
- On debt side, selection of the securities is based on lower credit risk and lower volatility
- Asset allocation rebalancing will be reviewed on a quarterly basis and security rebalancing will be reviewed on a half yearly basis
Portfolio Composition:
- Equity and equity related securities (0-30%)
- Debt oriented mutual funds, Debt ETFs, Liquid funds and Arbitrage funds (0-100%)
Benchmark: NIFTY 50 Hybrid Short Duration Debt 25:7
Dynamic ETF Allocation Portfolio- Aggressive
Objective and Investment Approach:
The investment objective is to provide capital appreciation in medium term with relatively lower volatility through a dynamically managed portfolio of equity and debt securities
Investment Approach Summary:
- Rule based asset allocation based on in-house proprietary model on the basis of valuations of equity market, interest rate and other factors
- Rules based ETF selection and allocation currently with underlying NIFTY 50, NIFTY NEXT 50 & NIFTY MIDCAP 150 as indices
- On debt side, selection of the securities is based on lower credit risk and lower volatility
- Asset allocation rebalancing will be reviewed on a quarterly basis and security rebalancing will be reviewed on a yearly basis
Portfolio Inception Date: 13 Mar 2018
Performance since inception: 9.26%
Portfolio Composition:
- Equity oriented Exchange Traded Funds (0-100%)
- Debt oriented mutual funds, Debt ETFs, Liquid funds and Arbitrage funds (0-100%)
Benchmark: NIFTY 500 TRI
Minimum Investment: Rs 50 Lacs
Investment Management Fees:
Investment < 2 Crore: upto 1.0%
Investment ≥ 2 Crore to < 10 Crores: upto 0.5%
Investment ≥ 10 Crore: upto 0.3%
Exit fees- 1% if redeemed within 365 days from date of investments
Dynamic ETF Allocation Portfolio- Conservative
Objective and Investment Approach:
The investment objective is to provide capital appreciation in medium term with relatively lower volatility through a dynamically managed portfolio of equity and debt securities
Investment Approach Summary:
- Rule based asset allocation based on in-house proprietary model on the basis of valuations of equity market, interest rate and other factors
- Rules based ETF selection and allocation currently with underlying NIFTY 50, NIFTY NEXT 50 & NIFTY MIDCAP 150 as indices
- On debt side, selection of the securities is based on lower credit risk and lower volatility
- Asset allocation rebalancing will be reviewed on a quarterly basis and security rebalancing will be reviewed on a yearly basis
Portfolio Composition:
- Equity oriented Exchange Traded Funds (0-30%)
- Debt oriented mutual funds, Debt ETFs, Liquid funds and Arbitrage funds (0-100%)
Benchmark: NIFTY 50 Hybrid Short Duration Debt 25:75 Index
Media
In media interview, posted on 16th April 2020,
Anand Varadarajan- PMS Product & Sales Advisor, emphasis that they started with MF PMS advisory and now they have turned into a wide asset class portfolio management with AUM of 1069 crores.
He says “Rule based funds” are gaining traction globally as active managers are not able to beat the benchmark. In Rule based investing, Fund managers are involved at time of creation of modules not day to day basis so low portfolio churn,low trading volume.
Anand Shah, CEO, 20+ experience in fund management says predefined sets of rules is
- To rank companies on the basis of both top quality (High ROE & High ROCE) and Revenue growth with a track record of 10 years.
- Eliminate companies based on corporate governance issue, high debt issues.
- Model portfolio based on weights allocated
- Rebalance portfolio once a year
Minimum Time Horizon – 5years.
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Analyst questions
- Do you start with a top-down or a bottom up approach while selecting stock?
- What are the key elements to consider while evaluating companies based on momentum and volatility? Have you anytime been at a stage where risk can’t be managed or entered on the wrong side of the market? If yes, how did you manage?
- Please explain how Multicap & Blue chip Portfolio differs?
- How do you decide to overweight or underweight a stock relative to benchmark?
By Praseena Padmakaran
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